The Analysis Of HSM Chemical Engineering Company’s Accounts Receivable Management

The management status of the enterprise of accounts receivable will have a direct impact on the enterprise cash flows. Without suitable management, it will make the available capital decrease. And the company will turn into a urgency situation. What’s more, the enterprise will face a financial crisis. It is meaningful to manage the accounts receivable stay in a healthy situation. After research the flow path of accounts receivable,we can divide the accounts receivable management into three parts. There are the ex-ante credit assessment of the accounts receivable, the control during the accounts receivable happening,and the monitor after accounts receivable happened. They are central interlocking, inseparable. In this paper, through a combination of the management the situation of the HSM company’s accounts receivable, analysis the reason, and find the way to solute the problem.The reasons for of the HSM company produce large amounts of accounts receivable is its majority business is credit sales. The credit control policy HSM company have limit effect with HSM company accounts receivable. At the same time, it doesn’t have integrated the control during the accounts receivable happening,and the monitor after accounts receivable happened. When the credit control before the accounts receivable happen come to a problem, the problem will be larger and more serious. The HSM customer almost belong to the chemical industry, the production cycle of the industry is generally about three months. That means HSM Company must analysis its customer before sale.This paper make a summary of other scholar’s point on the management of accounts receivable, collected the domestic enterprises’accounts receivable turnover days. Find out the problem of during the management of accounts receivable. Inprove the process of HSM accounts receivable management.For the management of accounts receivable of the HSM Company, the most important part is credit control of HSM’s customer. So this paper focus on the credit control to enhance the management HSM’s accounts receivable by using the5C method, Z-score by Altaian, Sales analysis, Payment method. Besides we can use the DSO ratio and the age of accounts receivable to monitor the accounts receivable. Quantize the uncertain risk, so that the company can do something for the crisis. On the other hand, this paper raise the collection management when the accounts receivable happened. Finally, in the conclusions of the article, it summarized this paper, and point out the limitations of this paper.