The Research On The Receivable Accounts Of WJ Construction Enterprise Risk Management

With the increasing competition of the market, many companies use the way ofCommercial credit sales to extend their market share, increase sales and profit. As aconsequence, receivables are formed between companies. In China, with the fast promotedprocess of the urbanization and the implement of “The Twelfth Five-Year” plan,Construction industry gain a lot of opportunities and get improved. However, thecharacteristic and drastic market competition made the receivables increase day by day andmany companies use the way of Commercial credit sales, and it becomes an generalproblem in this industry. In terms of the management of account receivables inconstruction industry, they were influenced by the ability of company’s receivablemanagement except macro economy and industry situation. Thus, it is important forcompany to enhance their ability of receivable management in order to long-term operationand development.As the account receivable in construction industry increased so fast, It becomes an hotspot by the society. In this article, the author analyzed the situation of construction industryin China based on the relative concept of account receivable. He also found out themanagement issues through the WJ case, and pointed out his advice. The authors suggestthat companies should make a pre-control, tracking, and management after the event tocreate the benefit for company under the commercial credit sales.Through the survey of construction industry’s situation and characteristic, and makethe analysis form companies’ account receivable for Chinese construction industry and itsrisk, and also hope that through the understanding of this article can provide somereference for this industry’s account receivable management.