Research On Company M's Receivable Management

So as to maintain the market share faced with fierce competition,the enterprises make full use of the credit to expand sales to enhance profits,improve competitiveness,and thus forming a great many of receivables.With appropriate control of the account receivable,production scale can be expanded,sales and market improved,cash flow increased,capital turnover accelerated and reduction on the expense of capital can be achieved.Meanwhile,economic efficiency can be improved;However,if not properly managed,it could lead to serious troubles of cash flow,which surely affect the company's development.Construction industry developed rapidly in recent years,and construction industry entry threshold is low,leading to increase competition among construct ion enterprises.In order to improve quality,increase chances of winning,construction enterprises tend to relax the contract conditions;in addition,civil trade credit has become common among enterprises in terms of trading methods,these factors lead to construction Enterprise receivables and expanding,high cost of Enterprise Fund.Meanwhile,at present,China's construction market credit mechanism is not perfect,for enterprise credit supervision mechanism is not yet mature,which lead to breaches in Enterprise it is not uncommon that,construction companies suffer.Many construction companies failing energy recovery of receivables,their liquidity into financial straits,in part due to a long time unable to withdrawal of funds,capital chain rupture,normal operation of enterprises is difficult to maintain.Based on the relevant theories of receivables management,this thesis studied the formation of construction companies' receivables,the problems faced with them,and their control measures,expounded the establishment of receivables management system for construction companies and the methods for overall control,and underlined that construction companies shall strengthen the source control,mid-term management,and subsequent collection in receivables management.In addition,by combining with Company M's practice in receivables management,it made an in-depth analysis of Company M's receivables management and put forth an improvement plan for it.At last,the thesis put forward some specific suggestions for the improvement of receivables management in construction companies.