The Research On Accounts Receivable Management Of S Machinery Company

With the further deepening of economic integration and the improving of our market economy system, commodity economy has turned to buyer's market from seller's market. Credit sales have been widely used in market transaction to deal with the impact on business from the competitive market. "Accounts receivable" is a double-edged sword, on the one hand, with the rise in sales performance and profit, while reducing the pressures from inventory backlog and the management expenses; on the other hand, the risk of bad debts, the risk of time value and management come in a throng. To make credit sales not a shackle but a method to help corporate profits, it is necessary to make and implement effective customer credit policies to achieve a successful accounts receivable management, and improve the amount of sales as well as the quality of sales.In recent years, with the sale scale expansion and the sales income increased year by year of S Machinery Company (hereinafter referred to as Machinery Company), a substantial increase in accounts receivable was followed, rising accounts receivable has serious impacted the efficiency in the use of corporate funds. This article embarks from the actual situation of the company, analyzed the present situation of accounts receivable management and problems, dug hard reasons of accounts receivable dilemma, regulated account receivable management and developed a complete whole process of credit risk management system under the guidance of scientific credit evaluation methods and modern management models. The precaution put forward to set up an independent credit risk management department to coordinate functional division of the present department, sales department and account department, make scientific credit analysis tools, get a summary of information on a variety of channels, divide the final score to the corresponding credit rating and adopt credit sales policy. Credit risk management apartment and account apartment participate the control part mainly. It is necessary to redistrict the basis of the aging account receivable. During the contract administration, the first is submit the contact to account apartment to review the amount of contact, time monitoring the customer's payment schedule, strengthen supervision over the implementation of the specific content of the contract, and timely feedback information to risk management apartment to make a preventive adjustment. In the disposal part, we must improve the process of debt recovery, delineate remind node timely follow-up. In the performance appraisal system, the establishment of contact between performance incentives and receivables recycling help salesman pay more attention to the customer quality and actively participate in the work of debt recovery.