A Study On Improvement Of Accounts Receivable Management For Zhongmeibaitong Steel Mesh Co. Ltd.

With the continuous development of social economy and the increasingly fiercemarket competition, in order to survive and thrive, many companies have adopted away of credit sale to get orders, increase sales. This makes the receivables continue torise, increases the risk of the transaction, and some companies are even facing liquidityproblems due to large amounts of receivables, unable to maintain production andoperation, which seriously affects the healthy development of enterprises, and thisphenomenon in the domestic production of highway construction materials industry isparticularly evident. The occurrence and existence of accounts receivable is theinevitable product of fierce market competition, difference between sales andcollection time, therefore, the work related to accounts receivable have to be suppliedand completed.This article starts from the situation of domestic highway construction materialmarket and the characteristics of enterprises’ settlement, takes the receivablesmanagement process of ZhongMeiBaiTong Steel Mesh Co. Ltd. as a case study toanalyze, points out that the key accounts occupy large amounts of receivables, whilethe small accounts, have a big number, widely distributed, accounts receivable amountis small, but the quality is not higher, leading the company to lack available cash toexpand its production scale of and sustain its rapid development; larger amount ofoverdue receivables, if not fully recover the losses, will cause damage to the company;receivables turnover days are increasing after the decrease, which results great risk ofreceivables management problems; clarifies the company may encounter the credit riskof key accounts, small and medium-sized accounts and strategic credit risk. Finally,this article suggests domestic highway construction material enterprises， takingZhongMeiBaiTong Steel Mesh Co. Ltd. for example，that：segment account receivablesmanagement responsibility, change incentive system for collection personnel, buildcustomer credit evaluation system and company credit management system, strengthentrace analysis and of account receivables, improve the daily management, increasecollection efforts and efficiency of account receivables.