Research On Accounts Receivable Management Of DF Company

With the rapid development of market economy,the competition between enterprises is increasingly fierce,more and more enterprises adopt the way of sell on credit to complete the commodity trade.Obviously,it can expand the sales of the enterprise,increases sales revenue and profit,achieves the purpose of reduce inventory,improve market competitiveness through the way of sell on credit.However,the increase of credit sales will inevitably accompanied by enterprise receivables increase accordingly.Accounts receivable will be high if the enterprise is unable to effective management and control of accounts receivable.Then,the bad debt losses and management costs will increase,the operating profit will reduce,the capital turnover will be slow,these problems will increase the financial risk of the enterprise,and influence the healthy and stable development of the enterprise.The ways to management accounts receivable effectively and find the balance between expanding the sales scale and reduce financial risk has become the top priority of the current enterprise management.Taking DF company as an example,using the theory of credit management and risk management theory,on the basis of an in-depth understanding of DF company,to analysis the current situation of DF company accounts receivable management,accounts receivable aging structure,main customer accounts receivable,accounts receivable management institution,credit sales process and management system.We find that,the accounts receivable management of the DF company lacks of independent credit management department,the credit limit is wide,long charge current,bad debts and more difficult to recycle and management responsibilities are not clear,these problems are due to the enterprise risk consciousness weak,imperfect credit policy,internal control system is not sound,lack of effective information management system,such as lack of collection causes.Then the author propose some countermeasures to DF company,to improve the management of accounts receivable in three aspects:pre-action management,on-going management and after-action management.The pre-action management includes,strengthen the quality of employees training,set up an independent credit management department,improve the credit policy.The on-going management includes,establish an effective internal control system,strengthening the information communication between different departments,strengthening the accounts receivable aging track analysis,the introduction of information management system.The after-action management includes,improve the system of accounts receivable collection,strengthening responsibility and performance evaluation,use of accounts receivable financing.These countermeasures are combined the theory with the actual situation of DF company,so the measures proposed are targeted.