Research On Accounts Receivable Management Of CY Building Materials Company

Nowadays,the market competition is increasingly fierce,and more and more enterprises adopt credit sales to expand sales and reduce inventory pressure.However,excessive credit sales will lead to an increase in accounts receivable and insufficient working capital,which will eventually affect the normal production and operation of enterprises.CY building materials company is mainly engaged in the production and sales of commercial concrete,the sales has been on the rise,and the amount of accounts receivable has increased accordingly since its establishment,but nowaccounts receivable collection efficiency is not high,and the capital flow is slow.It’s difficult to manage continuous growth of accounts receivable effectively because of its current business model,making accounts receivable become a major obstacle during the company’s high development.herefore,how to effectively manage the company’s accounts receivable,to ensure the liquidity of funds is worth studying.Based on the relevant theories of accounts receivable management,this paper takes the account receivable management problem of CY building materials company as the research object,by using case analysis,field research and quantitative analysis,expounds the current situation of accounts receivable management of the company from three aspects of before,during and after the event,and analyses the problems and reasons existing in the current management.Though the CY building materials company has a certain management system for accounts receivables,there are still many imperfections through analysis.The main reason is that there is no credit management department,accounts receivable management system which existed defects,credit policy not sound in the management before the event;There are problems in customer credit assessment not in place,contract process management not in place,lack of tracking of accounts receivablein the management during the event;The management after the event has problems such as insufficient receivables collection,lack of receivables incentive mechanism,and lack of consideration of the use of accounts receivable refinancing method to avoid the risk of the problem.Therefore,based on the “3+1” credit management model,some suggestions are put forward to improve the CY building materials accounts receivable management system.In order to fully optimize the CY buildingmaterials company’s management pattern,this paper will be engaged in before,during and after the event proposed threestages.It should establish a credit management department and strengthen a credit investigation of customers before the event,and then strengthen the contract management and the dynamic tracking of accounts receivable during the event and finally improve the collection of accounts receivable and establish a customer re-evaluation mechanism after the event.The innovation of this paper is that CY Building Materials Company is a building materials enterprise that produces concrete.There are few studies on the accounts receivable of the building materials industry or concrete enterprises in China,so this paper can provide some references for the accounts receivable management of this industry.The research results of this paper have a certain guiding significance for CY building materials company’s receivables management,as well as a certain reference value for other companies in the same industry.