The Research Of JX Company On Accounts Receivable Management

In the market economy, as an efficient trading means to expand market shares, enhancecompetitiveness and reduce inventories, credit sale has been generally adopted by mostenterprises, especially by competitive Fast Moving Consumer Goods (FMCG) enterprises. Toimprove the competitiveness, those FMCG manufacturing enterprises would rather choosecredit sale than cash sale, which thus results in higher ratio of account receivables/salesrevenue than average level. If there is something wrong with receivables getting back, theenterprise will get into trouble of cash flow difficulties and rising costs. Instead of improvingcompetiveness, superabundant receivables will weaken the enterprise market competitiveness.To eliminate the negative influence of superabundant receivables and make sustainabledevelopment of enterprise, it’s important to research the accounts receivable management.JX company is a hygienic products manufacturing enterprise that at high speeddevelopment phase. In recent years, along with rapid sales revenue growth, JX’s accountsreceivables increase very fast, which brings several problems about accounts receivablemanagement. So this thesis tries to solve them by suggesting some proposals. First introductsthe accounts receivable management framework. Then analyzes JX company’s currentsituation of accounts receivable, including organizational structure, accounts receivablequality and credit risks. Thirdly, points out the problems exsiting in the accounts receivablemanagement of JX company. Finally, gives several suggestions to improve accountsreceivable management.The thesis includes five chapters. Chapter Ⅰ, Introduction, illustrates researchbackground and significance, research status. ChapterⅡ, JX company’s current situation ofaccounts receivable. Chapter Ⅲ, The management problems and its influences to JX company.Chapter Ⅳ, proposes suggestions for those problems. ChapterⅤ, the summary and limitationsof this thesis.