The Study On The Accounts Receivable Management Of OMT Company

In order to maintain the market share in the fierce competition, the enterprises takeadvantages of the credit to expand sales to increase profits, enhance competitiveness, thusforming a large number of accounts receivable. With appropriate management of the accountreceivable, expansion of the production scale, improvements on sales and market share,increase in the company’s cash flow, acceleration of the capital turnover and reduction on thecost of capital can be achieved, at the same time, economic efficiency can get improved.Those above together will increase the operating results of the enterprise to increase its abilityto resist risks. However, if accounts receivable are not properly managed, it could result infacing cash flow, financial serious difficulties, which ultimately may affect the enterprise’ssustainable development.Specialized in research, development, production and sales service on opticalcommunication products within the field of industrial Ethernet switching, OMT company’sproducts are used in more than30domestic provinces and autonomous regions in China. Dueto poor management of the account receivable, a large number of accounts receivable wereformed while the company’s business income grew, resulting in the company’s awkward cashflow situation, affecting its normal operation and management activities. To strengthen theresearch on accounts receivable management is of great significance for the OMT companyto improve the level of accounts receivable management so as to enhance the overallcompetitiveness, which also has a good reference for the same industry in a similar situationin the small and medium sized enterprises.Based on previous research at home and abroad, compared with the relevant situation incommunication manufacturing industry, I use the index analysis method and the aginganalysis of accounts receivable status, engaging in before, during and after the event, thethree aspects of the company’s accounts receivable management of the status of diagnosis,and the reasons from the management consciousness, organizational structure, system,management method, which contribute to obtain the OMT company in receivablemanagement problems, namely: advance management stage, the object of customer files isnot complete; the information is not comprehensive; the credit policy of customer information is not reliable; customer credit rating is at random; credit policies are lack ofpertinence. In management stage; credit terms are determined arbitrarily; credit transactionapproval is confused; credit department of communication efficiency is low. After themanagement stage, the dynamic customer information is not timely renewed; accountsreceivable analysis and feedback is not in place; responsibilities of collection are vaguelyassigned; collection policies are lack of strength; the overdue management is unscientific; theuse of accounts receivable financing is defect. The internal causes of these problems lie in theweak awareness, the unreasonable organizational structure and the shortcomings of creditmanagement system. While externally, the company is under the influence of business cycle,the economic and political environment.In order to solve the above problems, to conduct a comprehensive improvement of themanagement of accounts receivable for OMT company, namely the account receivablemanagement before, during and after the event, the three stage of the company global creditmanagement of account receivable improvement scheme, and to assure the implementationeffect of the project estimate. Thus, this paper is discussed from four aspects (concept,organization structure, mechanism, system): we should strengthen the management attentionto culture construction, promote awareness, adjust the organizational structure according tothe demand of the implementation of accounts receivable management responsibility system,carry out a comprehensive education and training, strengthen information systemconstruction.Finally, the results of this study are summarized and the limitations of this paper are putforwarded in the conclusion.