The Case Research On The Accounts Receivable Management Of TD Company

Since China joined the WTO, the international and domestic markets continue to deepen and integrate, the credit transaction has been more widespread popularity and becomes more active. Although the credit transaction brings win-win situation to the parties, but also brings a large number of accounts receivable. If the enterprise can manage accounts receivable appropriately, it will enhance market competitiveness, expand market share, maintain solvency and improve the operational efficiency of current assets. However, if accounts receivable are not managed properly, it may seriously affect the cash flow and routine operation of company, and finally result in financial distress.TD company is a small and medium construction enterprise which is engaged in road pipeline construction. In order to grow and develop in the competitive market environment, TD company chooses to take liberal credit policies, leading to the continuous increase of accounts receivable balance. But the company’s poor management has greatly affected accounts receivable collection and normal business activities. Therefore, the study on the accounts receivable management has important significance for TD company to improve accounts receivable management, prevent the risk of bad debts, ease cash flow difficulties, but also provides a reference for other companies with a similar idea of the situation.Using the index analysis method and the aging analysis method, this article first carries on a brief description about the accounts receivable management situation and plight of TD company, which draws out the prominent problems TD company facing. Secondly, the article analyzes the whole process of accounts receivable management from three stages of before, during and after the event, thus summarizes a series of problems that TD company exists. Thirdly, the article researches into the reasons for these problems, engaging in internal and external aspects of concept, consciousness, institutions, mechanisms, organizational structure, technology and policy environment. Meanwhile, it further clarifies the negative impacts on the funds use and operating conditions caused by the accounts receivable mismanagement. Therefore, TD company needs to pay more attention and speeds up the improvement of accounts receivable management. Finally, with the whole process of accounts receivable management, the article puts forward a series of specific measures to improve the accounts receivable management of TD company, including adjusting organizational structure, building credit evaluation system, developing credit policies, strengthening dynamic tracking management, establishing reconciliation system, improving contract approval system, strengthening overdue receivables management, so that there are rules and degrees for the relevant functional departments to follow.