Study On Improving Management Of Accounts Receivable Of Liebao Motor Company

In market economy, commodity transactions between corporations are basicallyachieved by credit sale. As an important promotional way, credit sale plays asignificant role on expanding products sale, improving sale revenueand profit amount, reducing overstocking and increasing competitive strengthin market. However, with the increase of credit sale, accounts receivable enhance aswell. If there is lack of efficient controls and managements towards accountsreceivable, it will result in serious influences such as accounts receivable burden,increasing loss of bad debts, raise of managements cost, profit reduction,difficulties in capital flow and raise of financial risk so that itwill affect the stability of corporation development. Therefore, how tostrengthen the management of accounts receivable is an importanttopic to modern corporate managers.In recent years, Liebao Motor Company gradually expands its sales scale, whichleads to the increase of sales revenue. However, its accounts receivable increasedramatically as well. The huge accounts receivable burden has been abottleneck which severely restricts the company’s development. This dissertationbases on the real situation of Liebao Motor Company, which gives some suggestionsby analyzing the existed problems of accounts receivable. It points that the companyshould build an accounts receivable management system which includes all theaspects, the whole process and all-personnel participation through three steps asprecaution, control and disposal. By the investigation of Liebao Motor Company,this dissertation provides feasible solutions which are beneficial to strengthen themanagement of accounts receivable, improve the efficiency of capital utilization andreduce the doubtful debts loss and financial risks.This dissertation not only analyses the current situation towards themanagement of accounts receivable in Liebao Motor Company,but alsopoints out the primary problems of accounts receivable managementin Liebao Motor Company, and analyses both internal and externalreasons which reflect on such problems. So the dissertation givessome suggestions and detailed solutions by investigating the existedproblems of accounts receivable management in Liebao Motor Company. The lastit generalizes the achievement of the management of accounts receivable in LiebaoMotor Company.