Investigation Of Internal Control System For L Company’s Sales Returns Improvement

Internal controlling system is the way of an enterprise’s internal management,it can help to manage the enterprise better and find the risks,So internal control system is a whole set of controlling system which meets the need of the enterprise’s self-control and self-discipline.Establishing a good internal controlling system can ensure the enterprise to improve its management,the efficiency and profitability.Sales business is the foundation of an enterprise,an enterprise should increase its sales and expand its market shares to develop itself.However,if an enterprise can’t ensure the stable growth of sales or take back the selling money timely,this enterprise will face the difficulty in its management,and it will lack the liquidity,the enterprise will not run well.However,sales and Accounts receivables are the key link of risk management,there exists all kinds of risks,such as fraud,default payments of the customers,etc..Internal controlling system of sales and receivables is the effective way to promote sales and control risks,it can also enhance the competitiveness of the enterprise.Cash flow is very important for enterprise’s business increase,and Days Sales Outstanding(DSO)is the guarantee of corporate’s cash flow.With the continue development and growth,the demand for cash flow increasing high and high,it appears more and more important for Days Sales Outstanding.But many companies pay more attention about sell,but ignore the Days Sales Outstanding,also there’s no an effective management control for appear overdue accounts receivable;the time of payment,average length high cost of capital;appears bad and doubtful debts,that will cut off enterprise profits.Therefore,To optimize Sales Outstanding management to improve the speed of payment state,have become an important task of the development process is the most important work for company.In this Article,control the accounts receivable management based on the combination of management tools Sales Outstanding DSO(Days Sales Outstanding)and AST(Actual Selling Terms),ACD(Average Collection Day),Currency Ratio,analysis of the L company’s current management Sales Outstanding model,as a globe company,L company doing well in this area,and worthy many domestic company learning from.Including organization management,management system,data analysis platform,and KPI evaluation etc..,but there’s still have some points of L company need to improve.This article shows that accounts receivable was a systemic engineering work.Especially for a large or globe company,accounts receivable should do a good job need a special organization department,need coordination with sales and financial department;need the demand of payment;need an effective data information platform;need maintenance of Customer relationship;need improve the internal organization etc,,In this Article,via analysis L Company accounts receivable management and conclusions,for optimizing and improving the domestic company’s Days accounts receivable Performance is important and offer similar experience for improvement.