Research On Optimization Strategy Of Accounts Receivable Management Of H Construction Company

With the in-depth implementation of the 13 th Five-Year Plan,China’s economy is developing steadily,infrastructure construction is rapidly advancing,the scale of the construction industry is also growing,and competition in the industry is becoming more fiercely.Due to the particular features of the production and operation model and other limitations,it is unavoidable for construction companies to hold accounts receivables,and managers had grown used to it.Construction companies generally have imperfect receivables management processes,lack of credit management systems,and omissions in the review of bidding processes etc.Therefore,reasonably use of accounts receivable and effectively improve the management of construction companies’ accounts receivable will the costs and risks of enterprises efficiently,which is significant to the sustainable development of enterprises.The research methods of this paper is based on the theory of accounts receivable and client credit management.By adopting revenue growth rate,operating income ratio,asset ratio,turnover of accounts receivable,aging structure analysis,customer type and quality evaluation of accounts receivable,this paper investigates accounts receivable of H Construction Company.And comparing the characteristics and the current situation of the construction industry’s accounts receivable fine out the problems and the risk of its accounts receivable with qualitative and quantitative methods.It discovers the problems in its management process,and proposes some targeted improvement measures to improve the management level of the company’s accounts receivable to reduce the risk of accounts receivable and ensure company to operate and develop healthilyFirstly,this paper analyzes the current situation of accounts receivable management of H Construction Company.By using the company’s annual report data from 2014 to 2018,comparing to the turnover rate of accounts receivable,the paper assess the quality of H Construction Company’s accounts receivable.It revealed that the company have defects and shortfalls in four aspects: credit management,financial management,risk prevention and control,and account collection.Secondly,comparing to the company’s actual situation and construction industry’s characteristics,find out the cause of problems in accounts receivable management.Finally,after an in-depth analysis of the causes,an optimization strategy was proposed,in order to improve the current status of accounts receivable management of H Construction Company,including how to review of the bidding process and asses project risk,the improvement methods of the company’s internal management and internal control system,the risk prevention and transfer of accounts receivable,the supervision and incentive measures of accounts receivable.It is hoped that the research of this paper can provide a good reference for the accounts receivable management of similar enterprises.