Research On Account Receivable Management Of PA Company

With the rapid development of China’s market economy and modern commerce,competition among enterprises has intensified.Credit sales have become a common promotional method used by companies trying to improve overall performance and resist competitive pressure.However,while credit sales have helped companies improve their near-term sales performance,they have also increased the pressure of debt recovery in terms of late payments.Consequently,the risks of accounts receivable have increased and disputes over non-performing accounts are on the rise.As a result,the efficient management of accounts receivable and the control of capital risk have become crucial issues to corporate management.PA Company is a supplier of high-end hotel supplies.In recent years,their sales network has expanded and their business volume has increased steadily over that same time period.Regrettably,the frequency and volume of non-performing accounts has also increased over this same time period,necessarily resulting in greater financial risks to the company.In particular,the hotel industry is reflecting on a tough recent past with two years of the pandemic and an acute shortage of staff and skilled workers.As an upstream supplier,PA companies are facing increased customer credit risk issues,resulting in a backlog of non-performing debts.The financial risks for hotel suppliers have increased.For this reason,PA Company recognizes the urgent needs to improve its own accounts receivable management,improve the management efficiency of accounts receivable,in an effort to better control financial risks.Based on the above background,this article takes PA company’s accounts receivable management as the subject,analyzes the problems in its accounts receivable management and proposes practical and feasible accounts receivable management measures.First of all,the article sorts out the relevant theories of accounts receivable management,summarizes domestic and foreign research viewpoints and lays the theoretical foundation for the research.It then systematically analyzes PA company’s accounts receivable management system,management status,and management effect.Through the analysis of three actual cases of PA company’s accounts receivable management,combined with the interviews and questionnaires of the company’s employees,the article highlights the four aspects of its accounts receivable as;management awareness,management organization,management policies and management process.Finally,in response to the PA company’s account receivable management issues,the corresponding measures and implementation plans are proposed in four aspects: management awareness training,management organization adjustment,management process specification,and management system formulation.The article identifies the theoretical issues of accounts receivable management and recommends strategies for PA company to more effectively mitigate its identified financial risks.At the same time,it provides some reference for other companies in the management of accounts receivable,which has certain research value.