Research On Internal Control On Account Receivable Of Chinese State-owned Companies

In the situation of the development of market economy and social competition and a sharp decline in business, in order to expand market share, more and more enterprises use commercial credit for sales. At present, the basis for social credit in China is still relatively weak,the social credit system is not yet complete, enterprise credit management system is still being explored and established,the sense of accounts receivable management in most enterprises is relatively week, the method of management is single, most enterprises have still not established a perfect credit management system. So the phenomenon of arrears between inter-enterprise is more serious, resulting in a significant increase in current accounts of enterprises. Customers have bad faith, arbitrarily default accounts, companies need to invest a lot of energy and financial resources to solve the difficult problem of collection, but because of the lack of experience of internal control of accounts receivable, it still generates a lot of bad debts, makes the profit seriously eroded. Furthermore, because the business management is not complete, many other current accounts that do not belong current accounts is also reflected in it, it also results the increase in current accounts. Strengthen the management of current accounts is very important to reduce the funds used, increase enterprise efficiency and create a good environment for internal operation and management.The reasons of the problems of management of account receivable are both the buyers and the sellers, according to the principle that internal work by external factors, we believe that it needs to start in company to solve this issue, strengthening internal control and management. The state-owned enterprises, as an important part of national,need to improve the management level by strengthening the internal control system facing the reality of this urgent that can not avoid.In recent years, state-owned enterprises in China has made obvious achievements in the construction of internal control, but it should be recognized that compared with the developed countries, there are still a wide gap in the level of construction in state-owned enterprises,as a result of weak internal control management,there are many examples of failure. Therefore, to strengthen the internal control of state-owned companies, is not only the need to deepen reform of state-owned enterprises, but also to adapt to global economic competition.There are some of their own characteristics in the management model, organization system of the state-owned companies,so the article firstly make theheoretical study of internal control of state-owned enterprises accounts receivable,and then combined with a large state A as case study,in order to provide solution of evaluation and design of internal control of accounts receivable and promote the practice of internal control improvement and development.