Research On Risk Control Of Accounts Receivable Of X Trading Company

Since the reform and opening up,China’s socialist market economy has got a rapid development,at the same time,the competition between enterprises is becoming increasingly fierce.In order to improve the competitiveness and expand market share,more and more enterprises use credit sale as a mean of promotion,thus causing high amount of accounts receivable.What’s more,that weaks the liquidity of enterprise funds and makes the enterprises face increasing operational risks.Based on this,this paper puts forward the risk control of accounts receivable of X trading company.This paper first reviews and analyzes domestic and foreign accounts receivable management theories,taking the X trading company as the research object and making a deep exploration of its status of accounts receivable management,especially for the financial history data of nearly ten years.It reveals all kinds of risks in the enterprise accounts receivable management and analyzes reasons of the risks and provides effective countermeasures to raise the management level of accounts receivable and reduce the risk of accounts receivable for the enterprise.It also puts forward setting up independent credit management department and stipulates that the credit management department in conjunction with the financial department,sales department and other departments should make a comprehensive and effective overall management which can be divided into three stages,pre-product stage,in-product stage and ex-product stage.In order to change the passive situation,which focus more on the ex-product management under the traditional mode,this model formulates management strategies in detail according to the pre-product stage,in-product stage and ex-product stage.The strategies include the division of labor of relevant departments,establishment of credit policies and line of credit,management of collection process and so on.By taking account of all aspects of the control of risks of accounts receivable,we can cancel the bad debts risk before the beginning of credit sale operation to ensure the healthy and stable development of enterprises.X trading company accounts receivable management has many problems,such as weak awareness of risk,the credit policy is not reasonable and so on,these problems are universal in our country business enterprises.Therefore,it is important for enterprises to strengthen control research on accounts receivable risk.