The Research On The Improvement Of A Company's Account Receivable Management

Accounts receivable is the product of commercial credit,it is a inevitable economic product of the modern economic society,and it has positive effect on the enterprise business activity.The length of the accounts receivable payment days affects the velocity of the flow of money,resulting in time value,and therefore the management of receivables can actually increase the earnings of the enterprise.However,due to the incomplete credit system in our country,it is inevitable that enterprises will face different levels of receivable management risk in real economy activities.In order to optimize and improve the accounts receivable management system of A company,this paper mainly focuses on the case of A company,and puts forward improvement suggestions on those problems,which exist in the management of accounts receivable.A company,a producer in the LED industry chain,was founded in 2008.In the early stages of the enterprise,the demand for A company's goods exceeds the supply,so A company looked down on the importance of the accounts receivable,also did not implement any reasonable accounts receivable management measures.After the increase in the number of competitors,LED product market competition intensified.Due to some enterprises implement IPO for lower cost financing channels,they have more advantages in terms of scale,and they can also put much more money on the research of research and development and product optimization.As A company's market competitiveness declines,A company had fallen out of the top10 in the industry,faced with selling pressure and unrecoverable due accounts receivable.A company took legal action to pursue of accounts receivable,however,those client companies had been a shell for a long time.In result,the due accounts receivable had been a bubble,and then A company just woke up and recognized of the importance of accounts receivable management system.By studying the case,we find that A company's accounts receivable management,credit management,information updating,daily monitoring,performance evaluation and risk compensation mechanism,all need to be optimized.The causes of that phenomenon include the changes in the external environment,imperfect system of accounts receivable,accounts receivable management which does not reach the designated position,and a decline in the company's core competitiveness.Therefore,this paper puts forward the corresponding measures,the first one is to increase the professional management department;Secondly,it is necessary to establish a set of management strategies as the form of whole process management,performance management and incentive mechanism.Third,it is important to promote the core competitiveness of enterprises and actively use new Internet technologies.In conclusion,We need to do something to keep the risk of receivable accounts from enterprise management.