Research On Internal Control Of Accounts Receivable Of KS Co., Ltd

As Chinese economy has entered a new normal stage in an all-round way,the economy is facing tremendous downward pressure,as well as the slowdown of macro-economic growth,Sino-US trade frictions,real estate regulation and other factors,the slowdown of the growth rate of real estate investment,the increase of the concentration of real estate enterprises and the promotion of strategic collection of large real estate enterprises.In order to seize the market,credit sales has become an important sales promotion means commonly adopted by construction waterproofing enterprises.However,due to the unreasonable management of accounts receivable,enterprises fall into the dilemma of "difficult to sell and more difficult to collect".The company’s overdue accounts and bad debts remain high,which seriously affect the enterprise’s capital turnover,and even make the enterprise face the break of the capital chain.In view of the severe situation of internal control of accounts receivable in enterprises,it is of great practical significance for enterprises to strengthen the research and analysis of the current problems and causes of internal scontrol of accounts receivable,and seek solutions,so as to improve the level of internal control of accounts receivable.More and more enterprises gradually realize the importance of internal control of accounts receivable to enterprise management.Effective management and control of accounts receivable has become one of the key factors affecting the survival and development of enterprises.KS Co.,Ltd.is one of the top ten enterprises in the building waterproofing industry,specializing in the research and development,production,sales and construction services of building waterproofing materials.Like most building waterproofing enterprises,the high balance of accounts receivable of KS Co.,Ltd.affects the capital turnover of the enterprise,reduces the competitiveness of the enterprise,and becomes a difficult problem in the internal management of the enterprise.This paper takes the building waterproofing enterprise KS Co.,Ltd.as the research object,and studies the internal control of accounts receivable of KS Co.,Ltd.on the basis of internal control theory,risk management theory,credit management theory and so on.Firstly,the paper introduces the basic situation of KS Co.,Ltd.in detail;secondly,through the analysis of the financial data of KS Co.,Ltd.,it reveals the current situation of internal control of accounts receivable of KS Co.,Ltd.;at the same time,it finds out the problems existing in the management of accounts receivable of KS Co.,Ltd.through questionnaires and interviews with senior executives,and analyzes the causes of the problems combined with the five elements of internal control.Finally,the paper puts forward the optimization countermeasures and safeguard measures to establish and improve the internal control of accounts receivable of KS Co.,Ltd from five aspects:improving the internal control environment,improving risk assessment,improving control activities,strengthening information communication and strengthening internal supervision.This paper provides an operational scheme for solving the problems existing in the management of accounts receivable in the case company,and then provides reference for the internal control construction of accounts receivable of listed construction companies in China.