Research On The Improvement Of Sales And Receivables Cycle Management Of Z Company

In recent years,the continued economy downturn and the outbreak of the ChinaUS trade war have led to a series of problems,such as the increasing selling expenses,the increasing proportion of credit sales,the prolongation of the recovery cycle of money and the slow speed of money back.These contradictions will not only seriously affect the efficiency of capital utilization,but also reduce the cost-effectiveness and even lead to the risk of capital chain rupture.Therefore,in response to the above problems and ensure the sustainable operation of enterprises,they must strengthen the management of their core business tache.That is to say,the enterprises should constantly establish and improve the management mechanism for sales and receivables cycle,so that they can achieve competitive advantages and remain invincible in the fierce market competition and the depressive economic environment.Z company is a comprehensive international engineering company.In addition to cultivating the domestic market,it has also set up an overseas department to actively expand the overseas market,which has a good development prospect.Based on the results of in-depth internship and inquiry investigation in the company,drawing on relevant research results at home and abroad and the operation situation of Z company,this paper expounds the operation status of sales and receivables,and describes the existing problems in Z company,according to the adjusted five links of business process of sales and receivables after taking actual situation into consideration in the base of eight links.There are problems such as imcomplete sales budget system,imperfect customer credit management system,single sales mode,unreasonable management of salesmen,inadequate execution of contract and order management,non-standard on-site acceptance process,lack of inventory management awareness,inefficient collection of overdue receivables,delayed confirmation of receivables,single method of bad debts provision,poor customer maintenance,imperfect quality assurance management system,and audit supervision “in name only”.Based on the analysis of the causes of the above problems and the actual situation of the company and the industry,referring to the normative requirements of the construction of internal control system of enterprises,the paper put forward corresponding improvement schemes,like strictly controlling the sales budget management,improving customer credit management system,expanding sales channels,improving sales personnel management mechanism,strengthening contract and order management,improving relevant systems of on-site acceptance process,strengthening inventory management,strengthening collection management of overdue receivables,strengthening internal audit supervision of receivables,adopting various accrual methods of bad debt provision,establishing smooth communication channels with customers,improving product management system during after-sales warranty period,and strengthening audit supervision.On the premise of the particularity of EPC industry,starting with the actual operation of Z company,this paper combines the internal control theory and risk management theory with the actual sales and receivables of the company;integrates the controlling elements into each link of sales and receivables;analyses the internal control for sales and receivables of Z company;finds out the problems existing in each link of control and puts forward some suggestions.The improving scheme is aimed at improving the operation effectiveness of the internal control of Z company,promoting the healthy,sustainable and rapid development of the company,and in hope of playing a certain reference role in the internal control management of other companies in the industry.