Research On Accounts Receivable Management Of Construction And Decoration Company

Accounts receivable management is an important part of financial management for construction and decoration enterprises.A prominent feature of the financial operation of construction and decoration enterprises is the advancement of projects.That is to say,after obtaining the project through bidding,the enterprise does not receive advance payment from the entrusting party(or Party A)in advance,thus starting the decoration project;but Within a certain period of time,the enterprise must have sufficient funds to advance business for Party A.If Party A's capital flow is not smooth and the decoration construction payment cannot be paid in time according to the contract,the decoration company's capital flow on this project will be interrupted.If a construction and decoration enterprise does not have a good capital flow and the necessary financing means,and a construction and decoration enterprise often operates multiple renovation projects at the same time,it may hinder the normal financial operation of the enterprise.Problems such as the large scale of accounts receivable,long ageing,and difficulty in recovery have become the bottleneck of the operation and development of many construction and decoration engineering enterprises.CY building decoration company is a company mainly engaged in building decoration and decoration,and is a typical representative of small and medium-sized building decoration and decoration enterprises.The management of the accounts receivable during the operation of the company reflects the accounts receivable in the building decoration industry to a certain extent.Management status and existing problems.While CY's operating income increased,the quality of accounts receivable deteriorated,which had seriously affected CY's normal operating activities.Therefore,this article takes the case of the CY building company under the construction and decoration industry as an example,and proposes a study of the CY building company's accounts receivable management.After combing and summarizing the relevant theories of domestic and foreign accounts receivable management,I selected the company's financial data from 2014 to 2018,and contacted CY building company's accounts receivable management process and system to analyze related problems..Through analysis,we found that the company has the customer credit management mechanism is not sound,accounts receivable reconciliation is not in place,accounts receivable collection method has defects.To this end,this paper put forward the whole process of credit management theory specific actionable Suggestions for improvement,such as making a sound accounts receivable credit management,strengthening regulation of accounts receivable reconciliation work regularly,make use of the third party institutions and law suit both way of collection,such as expected in a variety of methods,under the joint action of ascension CY company accounts receivable management quality and level,to other architectural decoration company in order to strengthen the management of accounts receivable significance and reference value.