Research On Management And Control Of Accounts Receivable In China’s Listed Corporation

The accounts receivable is an important part of the company assets that its ability to turn to cash smoothly has great influence on company’s cash flow and the demand of reproduction and reinvestment for capital. Economic globalization has deepened the market competition among enterprises. To expand sales and increase their market competitiveness of products, companies have to adopt the way of credit trade. On one hand, credit trade is the necessary means to increase the enterprise product market share in a buyer’s market; On the other hand, the increase credit risks make the companies face the situation of fund cash shortage and even lead to financial loss and affect the normal operation of the company. Hence, how to survive in the fierce market battle has been widely concerned by the managers and accounts receivable management has become an important content in modern enterprise management. The main purpose for the enterprise to carry on the management for the accounts receivable is to ensure the realization of enterprise profit, acceleration the capital recovery of enterprise, increasing their asset quality and reducing bad debt losses of the enterprise. At the same time, the accounts receivable management can reduce the financial risk of the enterprise, strengthen the contact between the enterprise and its customers and lay the foundation for sustainable development of enterprises. In this paper, following the dimension of proposing question and analyzing the question and solving the question, normative analysis method is used to point some problems for the listed company according to the current accounts receivable management and control situation of listed Corporation through the accounts receivable management and internal control related theory by reviewing he domestic and foreign scholars on the management of account receivable and relevant internal control research. The problems include the scale of accounts receivable is large and increasing year by year; the company lack related internal control understanding of accounts receivable; the management of accounts receivable is lack of linkage mechanism between departments and credit management system; Besides, the incentive evaluation system is not perfect. Finally, casting XH company which was issued the first negative opinion for the audit report of internal control in the listed company as a case, the defects of the management and control of accounts receivable from2008to2011is analyzed and some suggestions which is including that an independent Department of credit management should be set up; the reasonable credit transactions related policies(including credit, credit period) should be established; the assessment and incentive mechanism should be improved and enterprise staff awareness of the risks and related quality should improves, too. Moreover, since the problems of XH company is not a special case, some enterprises which have similar problems can draw some lessons from it.