Research On Accounts Receivable Management Of B&L Pharmaceutical Company

With the development of our country market economy, it caused tough competition between enterprises. The credit sales becomes a kind of important means which the enterprises take for more and more sales target and market potential. The credit sales improve the competiton ability of the enterprises and expand the market share. But it also has a lot of problems and hidden dangers. The credit sales is a double-edged sword which can improve sales. The enterprises can’t normal operation and development due to the accounts receivable risk. It is a problem that can’t avoid. Because the whole credit environment of our country is not sound, and the laws and regulations still need to improve, and the management system of many enterprises are lack, a lot of accounts receivable can’t recover in time or even become bad debt. The management problems of AR cause many enterprises into cash flow difficulties. In severe cases, enterprise’s cash flow and finacial situation will worsen. This will restrict the sustainable and healthy development of enterprises. The western theory research of accounts receivable has been developed. And the research in our country has just started. Our country has not yet formed a sound research systems. In our country, a lot of theory research directly copy the management mode of western developed countries. Accounts receivable management method is relatively lacking which can adapt to China’s specific conditions. How to manage the accounts receivable and reduce the accounts receivable credit risk, it has become an important research topic and has a strong practical significance.On the basis of analysis and summary on the theories of accounts receivable at home and abroad, this article studies the status of accounts receivable management system of Bausch&lomb pharmaceutical company. After comparing the financial data of recent years, this paper reveals the various problems of accounts receivable management and further analyzes the specific causes. Under the premise, combining with the theory of credit management and the theory of risk management and the theory of comprehensive management, this paper puts forward the whole management mode. This method can improve the level of accounts receivable management and reduce the risk of accounts receivable. The whole management mode considers that enterprises need to set up a specialized credit management department. The credit, finance and sales department jointly manage the accounts receivable in three stages. The three stages are pre-the matter, in-the matter, after-the matter. The AR management is mainly improved in three stages. Three stages respectively develop detailed management measures. The measures include managing permissions settings, credit policy and approval of credit limit. These measures try to change the passive management mode. These measures strengthen the management of pre-the matter and in-the matter and the supervision of sales staff. On the basis of perfect credit approval, these measures will put an end to bad debt risk as much as possible in credit business. Enterprises try to keep a balance between credit and accounts receivable risk and realize the goal of value maximization.