Research On Internal Control Of Sales And Receivables Cycle Of HD Company

With the vigorous development of market economy,enterprise problems are slowly exposed,in the survival of the fittest environment,many companies did not stick to it.There are many reasons for the failure of business operations,especially the imperfect internal control system,the enterprise does not attach importance to the internal control and internal control measures did not run effectively and so on.The basis for the profitability of the company is the effective operation of the sales and collection business.In this business,it is necessary to promptly recover the purchase price so as not to affect the cash flow of the company.At the same time,the sales and collection business itself is complex and difficult to control,so that it faces a lot of risk.Therefore,a company need to establish a sound sales and collection of internal control system in order to reduce the risk that may meet,so as to promote the long-term development of enterprises.HD company is a private enterprises that produces plastic packaging,the products are used by a number of well-known domestic spices companies,and has a stable source of customers.The company has entered a stable development period,in the years of production and management gradually formed a set of its own characteristics of the internal control system,but there are still many shortcomings,making the company's sales and collection business has some hidden risk,and threatening the company's long-term development.Moreover,the entire industry is facing a new round of reshuffle,HD company need to improve the internal control of sales and collection cycle in order to gain a firm foothold in a competitive market environment.This paper studies the internal control of sales and receivables cycle of HD company.Firstly,this paper introduces the background and significance of the article,summarizes the literatures at home and abroad,and introduces the research contents and methods of the article.Secondly,introduces the concept and elements of internal control,and then the definition,business process,control target and main risk of sales and receivables cycle are introduced.Thirdly,analyze the HD company profile,the characteristics of the industry,accounts and receivables and provision for bad debts,sales and collection cycle internal control of the operating conditions.Then,analyze HD company's internal environment from the five elements of the internal control: internal environment,risk assessment,control activities,information and communication,internal supervision of the status quo.Understand that the company lack of internal control culture,and there is no perfect risk management mechanisms and processes,there are risks of accounts receivable management,poor communication of information,internal supervision mechanism is not perfect and so on.And find some solutions: improve the internal control consciousness,improve the risk response measures,improve the management of accounts receivable,strengthen the internal information flow,establish the internal supervision mechanism and so on.Finally,summarizes the contents of this article,points out the shortcomings of the article,and prospects for future research.Hoping to reduce the risk of HD company's sales and receivables to help companies improve operating efficiency and promote long-term development of enterprises.