Control Of Account Receivable Study

As China has jumped from Shortage Economic to Over Capacity Economic, marketing competition become more and more serious, as a result, most of enterprises have to provide credit to customers or even Finance customers to sell their products to survive. However, Management have not aware of the importance of Account Receivable Control, by using simple method to manage the credit control issue, no efficient system to manage the whole process, then caused enormous amounts late payment for Account Receivable as well as a great deal of bad debt occurred. In serious, some company has big problem for Working Capital, and can not run their normal business, the worst case is some of company went into bankrupt. This is a quite important issue for current enterprise. Many paper studied this issue, but this paper focus on policy establishment, emphasis the whole process control.This paper adopt some theory and tools of Account Receivable control to analyze the case corporation existing policy on Account Receivable, found it has some shortage on customer credit control, accounting and outstanding invoice chase back. And paper get a conclusion that case corporation has not established a comprehensive Account Receivable control policy, which should cover several related department and must be implemented in whole process. Paper advice is that case corporation need to set up a separated Credit Control department, improve the information system, strengthen the money chase back action. After the improved policy implemented, case corporation Account Receivable situation got a significant better change, decline for both overdue invoice percentage and bad debt percentage.Paper think, to improve the issue of Account Receivable control, need pay attention on customer credit control and all related business operation for Accounting Receivable, a separated Credit Control department establishment is necessary, the key point is this department can act as a power engine to push control policy can be carried out absolutely. And this study result also can provide a positive value to other corporation.