Management And Control Of Accounts Receivable In Guangdong

With the rapid development of market economy and increasing competition, the enterprise has to develop new markets, formulate new sales strategy to remain invincible. In particular, the seller market has changed into the buyer’s market today, as a means to attract customers and expand sales with the implementing installment payment and credit strategy, the formulation of new sales strategy has been adopted by more and more enterprises, which caused the enterprise receivables increased significantly. For the company, how to establish an effective and complete accounts receivable management system is the effective way to credit sales, good management of accounts receivable, reducing its cost and risk, and finally enhances the competitiveness of enterprises in the fierce market competition.Guangdong X Company was founded in the 1990s, which is a high tech enterprise that has focused on electric power energy conservation and environmental protection, the research and development, manufacturing, sales and service of new energy power. As a result of not paying enough attention to accounts receivable management, the accounts receivable increased year by year, which made the company’s cash flow situation grim, and brought huge obstacle to company’s production and normal operation. In view of this, researching on the scientific management of accounts receivable has not only an important realistic meaning to raise the management level of accounts receivable of Guangdong X Company, and integrate the company’s competitiveness, but also a good reference to other similar enterprises.On the base of previous research on account receivable and credit sales home and abroad, firstly this article analyses account receivable theoretically:the internal factor and external factor of accounts receivable generation; the carrying charge of accounts receivable, which concludes shortage cost, management cost, opportunity cost and loss on bad debt; mismanagement of accounts receivable brings the company negative effects.Secondly, this article combines with the financial indicators analysis of accounts receivable of Guangdong X Company, the analysis on the reason of accounts receivable generation show that it is the major cause that lack of awareness of accounts receivable, non-positive supervision of competent leadership, inadequate quality of sales staff, and high-frequency return of goods that results in accounts receivable successive incremental and high.At the end of the paper, this article proposes several measures to improve the level of accounts receivable management Guangdong X Company:First, the company has to establish the company credit management agency, clearly define the function of credit management agency, and deal with the relationship between the credit management department and other departments well.Next, the company should implement scientific and reasonable credit policy, which includes credit standards, credit terms, and collection policy, and handle the tightness of credit policy well. Again, the customers’ credit should be evaluated periodically to avoid the risk of sales. Finally, the company has to establish tracking monitor system of accounts receivable, follow a whole process track on the large amount and key customers’ accounts receivable in order to comprehensively control the company’s accounts receivable.