Case Study On Accounts Receivable Management Of Sany Heavy Industry

Accounts receivable management is an important content ofenterprise working capital management. Once the accounts receivableappear problem, it may lead the problem of working capital, sales incomewill be difficult to recover, and the bad debts may affect the normaloperation of the enterprise activity. It also may lead to the rupture ofenterprise capital chain and the bankruptcy. Thus accounts receivable isnot only a question of enterprise management, is also a corporate financeproblem.Along With our country economy profound changed, more and moreenterprises began to realize the importance of accounts receivablemanagement for enterprise management and daily operation. In particular,in the past two years,"sanyi accounts receivable exceeds20billion, andthe fund pressure leads to a lot of layoffs""sanyi receivable accountdraining increased from101days to101days" and other similar news,was frequently seen in the newspaper. Large accounts receivableunavoidably bring financial worries and damage for the company, affectthe healthy development of the company. In this paper, I put the sanyiindustry as the research object, using the theory of working capitalmanagement, credit management. I also use methods such as financing,risk management, and the evaluation of the model of sanyi industryaccounts receivable situation. Then I put forward some suggestions.The full paper is divided into four chapters. In the first chapter, Ibriefly introduce the selected topic background and significance of thisarticle, research ideas, research status at home and abroad. In the secondchapter, I analyze management theory related to the accounts receivable.I mainly introduced the enterprise credit management theory and thetheory of working capital management. And accounts receivablemanagement method are also introduced, such as risk management,payment collection and account receivable financing, etc. In the thirdchapter, problems and the cause of the accounts receivable carried on thethorough analysis. Through the analysis, the high level of accountsreceivable, lead to accounts receivable liquidity of sanyi are too tight, profit decline in the quality of working capital and other issues. Then Idiscusses the cause of sanyi’s high accounts receivabl. In the fourthchapter, I gives the four aspects of the Suggestions for improvement.Including:1. To formulate scientific and reasonable credit policy,establish credit database;2. Improve the internal management system;3.Improve the way of accounts receivable collection;4. The accountsreceivable financing business.