Discussion On The Management Of Accounts Receivable In Food Manufacturing Industry

When we are talking catering, Chinese always say a slogan "Eat is the king for life". Biscuits and bread are the products that widely be produced in food industry. These products are the most convenient foods closely related to our daily life. Due to the continuing improvement in technology and equipments, food industry is rapidly in development. Nowadays, food enterprises widely spread in the world.In order to enlarge the turnover and increase market share under keen competition, an extension of credit period or credit sales limit to customers cannot be avoided by the enterprise. However, such extension of credit will increase the risk to the enterprise and use of its cashflow. In case of poor management to accounts receivable, it will increase the expenses and result a loss to the enterprise. In a worse situation, the enterprise will be closed down.This paper will discuss the management of accounts receivable in food manufacturing industry with some issues on writer's working experience in the industry. Suggestion will be given to improve and strength the control of accounts accountable.In the first part of the paper, it will overall describe the changes of market operating environment affecting the food manufacturing industry, its importance and characteristic, the changes of Industry after China entranced to WTO. In the second part, we focus on the discussion of some issues that affecting the management of accounts receivable in food manufacturing iiidi stry in relation to trading operation, logistic development, chain stores operatic u, and electronic commerce developmentIn the third part, we discuss the problem on control of accounts receivable. We also suggest some ways to improve the weakness and strengthen the control of accounts receivable.In the fourth part, we introduce two cases study on the control of accounts receivable.In the last part, we come to the conclusion on this paper. We discuss the result of the research and the outstanding issues that will need for further study.