Case Study On The Management Of Accounts Receivable In WK Company

The rapid development of economy virtually has increased between the competitions. The company is based on the invincible position, and then treys the best to improve product quality, reduce costs, and improve after-sales service. Under the pressure of the modern market environment, however, the traditional strategy cannot help and meet the needs of the company's growth and development. In this situation, credit became a kind of effective eye to attract the buyer's strategy. Through providing a certain amount of discount to the buyer and the payback period, the company can increase revenue, improve market share and eventually gain a competitive advantage in the peer.Credit sales, however, once you get the attention of the decision-makers and effective management, the company will face the difficulty of overdue accounts receivable. But, at present the small and medium-sized companies have to face the following situation,namely the imperfection of the system on the management of accounts receivable, and imperfect credit system in our country. It remains to be improved. In addition, many small and medium-sized enterprise managers lack of effective management of accounts receivable management concept of a single simple. Some small and medium-sized companies in order to expand sales, increase market share, blind to sell on credit, cause accounts receivable higher and the payback period is too long, seriously affecting the operation and the amount of liquidity. Eventually led to cash flow problems, and finally,made the company to pay the financial crisis. So enhancing the optimization of accounts receivable management has the realistic significance of the study.This article adopts the method of case study, from learning the management of accounts receivable and its theory,through consulting a large number of literatures. In order to understand the latest dynamic management of accounts receivable in recent years. Then, choose to understand its internal real information of WK enterprise as a case study of an object. On the natural conditions, the accounts receivable of the company and its management situation investigate and analysis in detail. Through investigating the WK of the company's accounts receivable in a study, using the trend analysis, aging analysis and ratio analysis, discovered including the scale, quality, aging, and the company accounts receivable management institutions, and other issues, WK Company's accounts receivable exist a late phenomenon, excessive concentration. The quantity is big.The problem,such as lack of credit management,causes these problems have a weak collection, lacking of credit department. Responsibility is not clear, and the deep reason of the performance appraisal system is not reasonable. So, improving the WK present situation of the company's accounts receivable management needs to establish a reasonable and effective management of accounts receivable collection procedures and independent credit management department, clear related department's functions,improve the management goal, so as to ensure the security of the account receivable,enabling the enterprise funds to normal recycling in order to strengthen accounts receivable can have reference.This article consists four sections: First section is the introduction to introduce this paper selected topic significance, the purpose of the research content, research methods,research content, framework and the research train of thought. The second section is the WK Company is introduced, the basic situation of the business scope, basic financial situation, and then through four small cases description WK enterprise accounts receivable a quality status. The third part introduces the theoretical knowledge about accounts receivable, including accounts receivable management, credit management, and the concept of accounts receivable risk, through trend analysis, the aging analysis and ratio analysis, with the company accounts receivable management problems, mainly for the customer account receivable credit risk. The phenomenon of exceed the time limit,the amount of accounts receivable, enterprises lack of effective credit management, and then analyze the deep cause of these problems, including accounts receivable collection link is weak, lack of credit rating index. The lack of approval process and credit standards, department responsibility divided not clear, performance appraisal system is not reasonable. The fourth part is in view of the problems and reasons for the former part found, targeted WK company accounts receivable management to improve a specific countermeasures, solving WK in accounts receivable management problems that exist in the company to WK company a provides reference value for better management of accounts receivable.