Research On L Company’s Accounts Receivable Management Based On PDCA Cycle Method

Since December 2019,the coronavirus epidemic has been widespread in the world.During such period,the small and medium-sized enterprises in China’s epidemic areas stopped working and shut down completely,and the factories could not produce normally,which led to the normal operation of the business.Many enterprises are facing the risk of bankruptcy.Under this background,whether small and medium-sized enterprises have enough cash flow decides whether they can survive the epidemic and develop safely,continuously and stably.With the development of China’s market economy,the environment and trade competition system are becoming more and more perfect,and the market competition in various industries is gradually intensifying.In order to obtain greater market share,enterprises,as the main body of market competition,have taken many measures to improve their competitiveness.In addition to the traditional means of competition,such as product innovation,reducing costs and improving production efficiency,increasing sales revenue through various channels is the main goal of enterprise development.In the market economy,credit sale has become one of the main means for enterprises to increase sales revenue.Credit sales can not only increase the sales volume of enterprises,but also reduce the pressure of storage and expenses of enterprises,and improve the profits in a short time.However,if the payment cannot be received on time,it may gradually produce bad debts of accounts receivable,bring great difficulties to the company’s capital turnover,and even lead to financial crisis.Therefore,in order to effectively improve the operation efficiency of small and medium-sized enterprises,enterprises need to pay attention to and continue to actively explore the credit sales policy and accounts receivable management scheme that minimize the operation risk and maximize the profit.Therefore,this paper selects L company,a small to medium-sized enterprise engaged in manufacturing industry,and applies the PDCA cycle method in quality management combined with the relevant theories of accounts receivable,namely risk management theory,credit management theory and comprehensive management theory,to improve the quality of accounts receivable management by changing the traditional static management mode,in order to bring new thinking to the enterprise’s accounts receivable management mode.Through the research based on PDCA cycle method,this paper comprehensively and systematically analyzes the relevant financial indicators of L company’s accounts receivable and the problems existing in the accounts receivable management system before,during,after and feedback process,and puts forward feasible countermeasures and suggestions one by one for the problems existing in L company’s accounts receivable,so as to provide reference for the accounts receivable management of small and medium-sized enterprises in China.For the development of the whole industry,we can also get the experience of accounts receivable control through the actual operation of L company,improve the management level of accounts receivable in the same industry,and promote the healthy and sustainable development of the whole industry.