Nanjing Rural Small And Medium-sized Construction Enterprises Accounts Payable Management

SMEs are an important force in China’s national economy. The registration number has reached+10million. SMEs provide more than60%of our gross industrial production and more than75%employment. Since SMEs absorb80%of new employment, they not only ease employment pressure in China, but also provide opportunities for a large number of rural surplus labor force. SMEs contribute significantly to Chinese economic development. But SMEs also face difficulties and problems in financial management, which obviously serious impact the economic returns.For small and medium construction enterprises, it is fine that the accounts receivable of the enterprise keep at certain level. But if the account receivable increased too fast with a large amount, that may affect the liquidity of the enterprise, seriously affect the normal day-to-day operation, consequently deteriorate the financial situation of the SME. enterprises should pay high attention and analyze the root reasons caused the receivables, take action timely to collect the receivables. Thereby reduce business risk and improve the financial situation of the small and medium-sized construction enterprises.Accounts payable On the other side, if the enterprise did not timely pay supplier in a long period, or even find many reasons to delay the account payable. It will temporarily gain benefit, but the action will largely destroy normal business relationship with suppliers, leading potential risks to business activities in the future.This paper first analyzes the present situation of account receivables and account payables of SMEs. Then take the receivable and payables management of those small and medium-sized construction enterprises in Nanjing as an example to analysis the situation and roots causes of the problems. The paper proposes that small and medium-sized construction enterprises should take a variety of measures and methods to optimize the process of accounts receivable and accounts payable activities. Last but not least, the paper suggests that SMEs should build up information management management based on SAAS mode, find overall solution on AR and AP for small and medium-sized construction enterprises.