The Research On The Management Of Accounts Receivable Of ZMQY Construction Company

Since the implementation of the reform and opening up policy in 1978, China’s national economy has been developing rapidly. Accompanied by the ever-increasing scale of infrastructure, our country’s construction industry has grown to be the pillar industry of our national economy and has been making great contribution to our national economy. At present, the number of construction companies in our country is large and keeps growing, thus there come fiercer and fiercer competitions in the construction market. In the market economy, it is a common practice for enterprises to offer commercial credit in order for business opportunities. Since the mid-1990 s, there has been a significant increase of the amount of accounts receivable of companies in China. Due to the fact that the construction industry is in the buyer’s market and our country’s general credit environment is in bad status, and because of the peculiar characteristics and the inefficiency of the management and administration(especially of the accounts receivable) of construction companies, the accounts receivable are commonly quite large in construction companies. Accounts receivables are very important parts of the short-term assets of a company, thus their management influences a company’s capital turnover and then the company’s normal stable operation and sustainability.This thesis focuses on the study on the problem of the management of accounts receivable in construction companies, it elaborates on the current situation of other relevant studies on accounts receivable at home and abroad. Based on theories about accounts receivable, adopting the method of case study, this thesis chooses ZMQY Construction Company as the study object and thoroughly analyzes its situation of accounts receivable under the guidance of method on financial analysis such as ratio analytical method and tendency analytical method. By doing in-depth researches on the current situation of accounts receivable management of ZMQY company, this thesis points out the failings of the current management of accounts receivable of ZMQY Company. And against these failings, combining studies on other researches on the management of account receivable at home and abroad with the current situation of ZMQY Company, this thesis proposes reasonable and feasible measures of improvement for the management of accounts receivable of ZMQY Company. Hopefully, this thesis will offer useful experience for the management of accounts receivable of construction companies, improve the competence of the management of accounts receivable, accelerate the capital turnover, and enhance the security and profitability of the creditor’s assets of construction companies.