| Since the rapid development in China,the construction industry has been experiencing a steady growth.The speedy operation of the market economy places both parties of the transaction in the buyer's market,while the enterprises,as the sellers,are facing increasing competitions.As a result,credit transactions have become an inevitable trend.However,as China is still in the initial stage of the development of the market economy and the credit management system is far from perfect yet,the rise in the number of the credit transactions has meanwhile lead to the tricky problem of the account receivable recovery.In the construction industry,which is characterized by long periods of construction and large amounts of projects,the problem of the account receivable recovery has bothered lots of the construction enterprises.At present,with a lack of a clear understanding of the accounts receivable with risks,the managers of the enterprises are not able to build up a feasible account receivable management system for the enterprises.Once the enterprises fail to keep the effective management control,leaving the accounts receivable remaining at a high level,the operating capital will be occupied by the bad debts and the doubtful debts.This will further affect the cash flow,and even worse,the sustainable development of the enterprise.Therefore,it is of practical significance to properly manage the accounts receivable,to reduce the risk of the operation and to improve the market competitiveness of enterprises.The SK Construction Company is an SME specializing in landscape constructions and urban constructions.In order to grow and expand in the highly competitive market,the company has adopted a lenient credit policy.While there has been an increase in the income obtained from their major business,the balance of the accounts receivable has also been piling up,which has severely harm the commercial activities of the company.Based on this,this paper puts forward the accounts receivable management of SK construction company.Based on the study on the management theory of accounts receivable,this article conducts a throughout analysis on the management organization of the accounts receivable of the SK company,the current scale,the changing trend of the accounts receivable,the division of age of the accounts,the realization ability and the customer's composition.Meanwhile,the article compares the differences before and after the company took action in 2016 as theresponse of the problems of the accounts receivable management,and reveals the existing problems of the accounts receivable management of the SK Construction Company.After that,the questionnaire method was used to conduct an investigation towards the internal staff in the company.It is illustrated from the analysis of the results that there are several issues in SK's current management of accounts receivable,including the lack of special organizations and professional staff in the dimension of credit management,the lack of system for performance appraisal and rewards and punishment,the underutilization of accounts receivable and other claims,the nonstandard daily management of accounts receivable,the imperfect condition of the internal control system.Accordingly,both the internal and external reasons behind these issues were analyzed deeply.Finally,the relevant measures were proposed to improve the management of accounts receivable based on the practical situations of SK.Specifically,the optimization thought of the whole-process management was utilized,detailed construction and improvement plans were proposed for each specific issue in a targeted way and a customer credit-rating system was established to pre-evaluate the credit levels of the existing consumers.Accordingly,the corresponding safeguard measures were proposed,which benefits the improvement of SK'S management of accounts receivable,helps to improve the current predicament of this company,and may provide reference for the similar enterprises to strengthen the management of accounts receivable. |
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