The Risk Control Research Of Accounts Receivable In International Logistics Agent Industry

Since the2008U.S. financial crisis spread to the European debt crisis,the international economic recession has directly affected the decline inChina’s import and export trade, as well as its closely related internationallogistics market, the enterprise’s survival and development of the logisticsagent therefore faces enormous pressures and challenges. In order to wincustomers, maintain and expand market share, companies have to take thecredit to improve their competitiveness, account receivable comes into play.Given the characteristics of logistics agency industry, few fixed assets, noinventory; accounts receivable is relatively big part of total assets, whichresults in the slow down of the cash flow and increased financial risk.Therefore, it becomes logistics agency business’s top priority to manage their account receivable and lower the risk of bad debts.Beginning with the internal control theory and using author’s owncompany for an empirical study, this article analyzed and discussed whatcause Account Receivable, problems associated with Account Receivable andsolutions. Chapter one is introduction, which talked about the backgroundand significance of the topics of research ideas, and then went over AccountReceivable and Internal Control related theory. Focus in Chapters III and IV,where there was a case study of logistics agency enterprises. Starting with theindustry’s own business processes and the nature, this paper drilled down thereasons for the formation of the accounts receivable and managementdeficiencies exist, the use of financial indicators of the risk analysis,proposed to take before, during and after control of the key points relating tothe business, it is recommended to establish the credit management sector,the strengthening of risk identification and early warning solutions, and itsusefulness to the assessment of the effectiveness, provides the industryenterprises of the same size a certain reference.