Evaluation And Optimization Of Internal Control Of Accounts Receivable Of S Paint Company

In recent years,with the country’s emphasis on environmental protection issues and the introduction of the three red line policies for real estate,and the emergence of the covid-19,companies in the coatings industry are facing enormous pressure.In order to increase market share,coating companies have chosen to sell on credit,which keep accounts receivable balances high.Accounts receivable is a double-edged sword,although it can increase market share and reduce corporate inventory,if it is not properly managed,it may seriously affect the sustainable operation capability of the company.Therefore,enterprises should pay attention to the construction of the internal control of the company’s accounts receivable.Research on Internal Control of Accounts Receivable in this article,the purpose is to provide some ideas for the coatings industry enterprises to improve the internal control of accounts receivable.Above all,this paper uses the literature analysis method to sort out the domestic and foreign literature on the internal control of accounts receivable,and summarizes the research results of scholars at home and abroad.The main problems existing in internal control and the main measures that can be taken to optimize the internal control;Simultaneously,the theoretical basis of this paper relies on the relevant theories such as credit management,risk management,and internal control.By summarizing the research results related to paper writing in these theories,it will pave the way for the following writing..Secondly,this paper adopts the case analysis method,starting from the aspects of accounts receivable quality,organizational structure,accounts receivable internal control system,internal approval process of credit sales business to expound the current situation of accounts receivable internal control of case enterprise S company and evaluation.Afterwards,the interview survey method was used,and corresponding interview questions were designed according to the responsibilities of the department,and online interviews were conducted with managers and employees of various departments of S company to obtain information related to the internal control of S company’s accounts receivable,which was helpful for the next step writingFinally,based on the case enterprise data and interview results,this paper analyzes the problems existing in the internal control of accounts receivable of S company,and the identified problems include the imperfect customer credit evaluation system,insufficient sales budget management,and the effect of accounts receivable collection.Poor internal audit department oversight,etc.Next,we propose optimization plans for these identified problems one by one,including setting up a professional credit management department,improving sales budget management,strengthening in-process control of accounts receivable,strengthening internal audit department training,and securitization of accounts receivable assets,etc.Through the research and analysis of the internal control of accounts receivable of S company,this paper can provide a certain reference for those enterprises with similar management mode to S company to improve the internal control of accounts receivable,and can further enrich the research on the internal control of accounts receivable content.