Research On The Management Of Accounts Receiavable In Liaoning X Biopharmaceutical Company

With the development of universal health care awareness and the aging of the population,China has introduced a number of policies in recent years to encourage the development and innovation of the health and the bio-pharmaceutical industry.Particularly,the implementation of the Healthy China initiative will benefit the development of the bio-pharmaceutical industry,but at the same time the market competition in the industry is also intensifying.In the process of competition,enterprises use credit sales extensively to expand sales and seize the market.As a result,the company’s accounts receivable increase,and the management accounts receivable is a problem that enterprises need to focus on.This paper takes Liaoning X Biopharmaceutical Company as the object to research on its accounts receivable management.Founded in 2003,X Company is a company integrating on R&D,production and sales.After years of development,the company has entered a period of rapid development since 2017.In recent years,the company’s sales revenue has increased,but at the same time the scale of accounts receivable has been increasing.In addition,the effect of the receivables management is continuously reduced,moreover,high investment and the long cycle are the industry’s inherent characteristic,so the risks faced by X company are increasing.This paper uses the related theories of accounts receivable and credit management to analyze the financial indicators of the company’s accounts receivable,such as the turnover efficiency,growth rate and ageing,and analyzes the current accounts receivable management system of the company.Through the analysis,it is found that the lack of credit management department within the company and the lack of rigorous customer credit control are the root causes of the decline in the quality of accounts receivable.In addition,no dynamic tracking of receivables,insufficient collection,and lack of assessment mechanism are the main reasons for the issues of the accounts receivable management of X Company.In response to the company’s problem,the paper proposes to set up a credit management department and clarify the responsibilities of each related department.The department is responsible for strengthening customer credit management and control to reduce credit risk by strengthening customer credit investigation,optimizing credit policy and establishing credit policy implementation norms.Accounts receivable management system,such as establishing an account receivable monitoring and early warning mechanism and improving the collection procedures,mainly to improve the capital turnover rate and liquidity,taking into account the sales to control the accounts receivable risk within an acceptable range,while using the accounts receivable with the higher risk are financed and jointly committed to improving the management level of X company’s accounts receivable.The research in this paper is expected to improve the scientific management level of X company’s receivables,and provide reference for other enterprises with similar problems.