Receivables Management Control System. HA Construction

Enterprises are getting involved in the fierce competition in the market as the rapid development of market economy. Many enterprises expect to obtain orders by sale on credit to increase sales for survival and development, which has been increasing accounts receivable and increasing transaction risk. Therefore, many companies develop slowly with a heavy burden. The accounts receivable have even led to cash flow difficulties in some enterprises that are unable to maintain normal production and operation, which seriously affect the development of these enterprises.Based on analysis of the difficulties and the root cause in management and control of accounts receivable in HA Company, the paper maintains that:imperfect system of the management and control of accounts receivable and lack of effective management control process are the main reasons which cause the difficulties. Management and control system by business process for sale and payment is designed in this paper, according to the actual marketing situation in HA Company. Management improvement has been achieved through the full implementation.Firstly, that enterprise administrators, through analysis, lack of the essential awareness of risk in sale on credit is the fundamental problem. Solely sales-oriented management on the daily operation of enterprise has caused that credit management system has not been established, business process is imperfect and management controls are not effective either, which has resulted accounts receivable out of control.Secondly, in view of existing problems of management in sale on credit in HA Company, with the principles of business process control and institutionalized management, the system of management and control by business process for sale and payment is designed for HA Company, in which, the critical control points in business processes are identified. A comprehensive system of management and control for accounts receivable has been established, which includes four parts, the organization system, business process system, information feedback system and human resource system.Thirdly, for the requirement of the system of management and control for accounts receivable, the specific methods of how to evaluate and determine the customers'credits are researched and developed which is combined to the actual situation in HA company. In Addition, management measures to enhance collection of payments and recovery of overdue accounts receivable are framed.Finally, a brief introduction is given which is about the operation and implementation of the system of management and control for accounts receivable in HA company. Necessary summary and analysis are made in this paper.The comprehensive management and control system for the accounts receivable for HA Corporation has carried out good results, which has effectively controlled the accounts receivable, increased the sales, promoted enterprise development.