The Problems And Corresponding Strategies Of Internal Control For Account Receivables In The DH Company In Changchun

With the further deepening of reform and opening up and the market economy,all walks of life there have been varying degrees of excess capacity. The plannedeconomy of the seller’s market has become history, replace it is buyer’s market. Themarket competition from the style, quality, quality competition to the development ofthe credit policy of payment and payment of funds cost competition。Changchun DH company is a Hongkong listed private a wholly ownedsubsidiary of listing Corporation, by the end of2012the total assets of1785000000yuan, current assets1000000000yuan, of which the balance of accounts receivable426000000yuan. Accounts receivable accounts receivable277000000yuan RMB,foreign currency receivable149000000yuan. The company is engaged in theprocessing of corn and corn starch sugar production enterprises, the main products arecorn starch, protein powder, fiber feed, corn germ meal, corn oil, corn syrup, glucose,crystal sugar, maltose and dextrin ten products. Product sales to the domestic andexport. In addition to corn starch, crystal sugar, glucose, maltose and dextrin seriesproducts, fiber feed feed products domestic cash sales, almost no credit situation. Leftand right value proportion cash sales accounted for10%of domestic products. Inaddition to corn oil, corn syrup, two kinds of products are all sold, the remainingproducts export has market, export accounted for about20%. Belongs to the domesticoriented to manufacturing enterprises.Domestic take credit for major products are corn starch, glucose, starch sugarproducts. This kind of product in recent years of excess production capacity, is a buyer’s market. The manufacturer’s market the right to speak more and more small, inorder to achieve the balance between production and marketing, sales and marketpressures are increasing year by year. Credit policy has been relaxed. When thecapacity is more and more big, when the production of more and more products,marketing also gradually rise in the status of the enterprise. All kinds of managementsystems of enterprises gradually to the marketing tilt, finally forms the marketingoverriding situation. Because of the company’s financial management and internalcontrol process itself limitations, lack of management implementation process of thediscount, the internal control system, resulting in the accounts receivable amount ofbad debts has increased year by year, the amount is increasing year by year.In this paper, through the study of Changchun DH company accounts receivableinternal control problems, and points out that DH company should be the weak link inthe management of the account receivable of the company shall, through theintroduction of the status quo, accounts receivable management, causes, existingcollection links and bad control measures, Using the method of case analysis,accounts receivable control environment, risk assessment, control activities,information and communication and supervision system of five elements of a detailedanalysis. Results showed that the accounts receivable management of internal controlis not complete, the execution is not in place, many regulations exist in name only.The main reason is to control the environmental problems, also is the organizationalstructure is not scientific. Further improve the company’s corporate governancestructure, with internal audit committee and credit management department.Innovation management, implementation of the "inverted triangle" managementmode, initiative and enthusiasm of the people from the mechanism of mining,guarantee the recovery of accounts receivable.This paper takes DH company accounts receivable management as the researchobject, the first chapter introduces the management of accounts receivable research background and the significance, purpose and method of study. The second chapterintroduces the status of the DH should be the management of the account receivable.The third chapter analyzes the current situation of DH company accounts receivablemanagement and the reasons of the problems, through the analysis of the problems infinding a solution. In the fourth chapter, based on the analysis of the problems, andfurther improve the accounts receivable management system. The fifth chapter is theconclusion, summarizes the research results of this paper and the limitations of thepaper.