Research On Risk Control Of Accounts Receivable In HJ Construction Company

With rapid development of market economy and acceleration of urbanization process in China,development prospect of construction industry becomes better and better.Vigorous achievement of “Twelfth Five-Year Plan” and proposing of “New urbanization” in the 18 th National Congress of the Communist Party of China also provides good opportunity for development of construction industry.Construction industry has developed quickly while market competition has increased,in order to undertake the project and enhance the market share,advanced-fund construction of construction enterprises is widespread,unrecovered debt leads to business difficulties endlessly.The account receivable is high,credit environment is worse and unpredictable loss is hard to predict,which makes the risk of account receivables accumulated and becoming an important factor restricting the development of construction enterprises for long time.Too high cost of pre-fund capital not only affects the return of funds,but also brings high financial and operational risk to enterprises.Strengthening risk control of account receivables has become an extremely urgent and important task.This paper focuses on subject of risk control of account receivables,takes HJ Construction Company as example.In order to find a way to strengthen the risk control of HJ company’s account receivable,this paper uses case study method to analyze the quality of accounts receivable of HJ construction company and identify the risks that affect various factors of account receivables,and combines theories and practice,proposes solution for HJ company’s on the basis of reading and analyzing some documents.Firstly,it analyzes and summarizes account receivables conditions of HJ company,in recent years,account receivables risk agglomeration effect of HJ company is obvious,the risk deterioration has limited the development of enterprise.Secondly,on the basis deep analyses of the factors that affect the risk of account receivables,it builds account receivables risk comprehensive evaluation system of enterprise,it includes financial and non-financial indicators.Indicators are given weight through analytic hierarchy process.Thirdly,it conducts regression analysis on account receivables risk comprehensive indicators and relevant historical data of account receivable,and constructs risk identification model.Finally,it predicts comprehensive risk of account receivables of HJ Company in account receivable ages.Through analysis,the loss rate of accounts receivable of HJ has increased year by year with increase of account receivable ages.In general,the variance of accounts receivable loss rate in account receivable ages has also raised,it indicates that the longer the aging is,the worse the risk controllability is;when the amount is similar in different sections,more attention should be paid on lower credit score customers.At last,the paper puts forward the risk control optimization measures of HJ Company’s accounts receivable,which is to improve credit risk management system,introduce credit risk assessment mechanism,strengthen risk dynamic monitoring of accounts receivable and improve post-supervision system of accounts receivable.It helps the case study object to strengthen management of accounts receivable,it also plays good effect to strengthen risk control of accounts receivable for HJ companies.