Research On The Management Of Account Receivable Of S Company

In external sales of goods or services,in which enterprises are main bodies,purchasing units shall make a payment to the sale units.Whereas if the purchasing units do not make a payment in due course,and the sale unit do not achieve the aim of collection,then for the sale units,an account receivable is formed.,The balance of account receivable,to some extent,is a reflection of the level of managerial and administrative expertise,capital management status.The level of enterprise management and operating conditions guarantee the enhancement of competitiveness of the enterprise,effective reduction of inventory management cost,and the improvement of quality and efficiency.Among domestic enterprises,lack of the awareness of risk management is common.Enterprises,in order to increase sale revenue,adopt the mode of product credit sales,which,to a large extent,restricts the development of enterprises.This paper selects Shanxi enterprise S as the research object,because the company has taken a large number of credit policies to sale since 2011,which led to the soaring rise in accounts receivable and in the risk of accounts receivable.In the middle of 2014,accounts receivable increased by 44.3% comparing with that of the same period in 2013 which is higher than the industry averages,while compared with 2013 operating income in 2014 fell by 17.75%.The accounts receivable management structure of company S is not compatible with its enterprise development phase deviation.It is typically reflected by the large scale of accounts receivable and the long overdue time,which is not just a financial problem,but a problem of the company management's quality in a deeper sense.Under the increasingly fierce market competition environment,apart from active expansion of the product and business portfolio,seeking management effectiveness has been an inevitable choice to increase the enterprise operating performance.Firstly,this article makes a sort to the relevant the domestic and foreign researches achievements about accounts receivable management problem and then forms a research framework of this article.Secondly,based on the analysis of company S and the accounts receivable management's present situation,the article uses the theory of asset quality to do qualitative analysis of accounts receivable's realization,turnover,profitability,etc,and it further analyses the causes of this company's overdue accounts receivable and the formation ofbad debts internally and externally.Finally,in view of the foregoing analysis of the causes,it is suggested to provide the solution systematically from the aspects of perfecting the organizational structure,improving the credit management system,improving the collection methods,perfecting examination incentive and choosing the right innovation of accounts receivable management method.The solution is to fundamentally solve the problem existed in company S accounts receivable management,and to further enhance the company S management and operation level,promote the enterprise sustainable development.