Optimization Research On Internal Control System For Account Receivable Of Hunan JX Garden Limited Company

With acceleration of urbanization and rapid expansion of real estate in recent years,the demand for plants in cities is arising both in quality and in quantity, along with which the landscape industry is booming. Now the market is unsaturated. How to gain market share in a short time is the marketing target of most companies. The competition between companies developed from quality and species of plants to the improvement of payment and credit policy. In this case, the company credit sales and account receivables must exist. Most companies focus too much on sales volume and ignore the management of accounts receivable, which leads to the stagnant of liquidity and financial crisis of companies.Hunan JX Garden Co., Ltd is a local landscape company integrating planning and design. The main direction of the company is landscaping projects construction and landscaping design, the core business of the company is urban landscape, and there is an upward tendency of its marketing year after year. Because of the specialty of target customer and sales process, credit sales have become a major marketing approach of the company. On the one hand, the company expands its market share, at the same time, due to the imperfection of management and internal control, the limit of accounts receivable is increasing year by year. Companies focus on the business of the landscape industry links, and the separation of business links with other management link is not good for garden enterprises to expand business scale. Only pay attention to business link, make all kinds of customers imbalance, credit abuse behavior, resulting in a large number of accounts receivable. It’s the fundamental reason for enterprises ignore the internal control system of accounts receivable risk assessment can’t be perfect and to use.Through studying the management of accounts receivable and internal control of JX company, by using COSO internal control system, this paper introduces the condition and causes of accounts receivable of the company and analyzes the case from the aspects of five key elements, discovering that the management of the company paid little attention on the management of accounts receivable, that the sales policy is one-sided and imperfect, that the credit management is not in place and that many systems are not set effectively. In order to improve the internal control policy of the company’s accounts receivable, this paper proposes: 1) to complete the organizational structure and separate the supervision function of decision-making level and the business of authorization and approval and the business of execution; 2) to conduct risk assessment of accountsreceivable; to face and know the risk point and respond quickly to it; 3) to make a set of appraising and incentive measures suitable for the company; to improve the working ability and enthusiasm of the employees specifically; 4) to strengthen the management of users’ credit and formulate matched collection policy.