The Study On The Accounts Receivable Management Of SWS Company

In a market economy,credit sales(or credit sales)are commonly used by companies as an effective means of trading to expand market share and reduce inventory.In the thermal power industry,companies generally adopt a more relaxed sales collection policy to increase turnover efficiency.Positive sales policies can effectively promote the scale of corporate performance,and help companies actively expand sales channels.However,the series of problems such as customer credit crisis and long recovery cycle will cause companies to face more bad debt risks.It is necessary to analyze the status quo of enterprise accounts receivable management using credit sales policies in the context of international business operations,analyze the major management problems existing in credit sales today,and discuss innovative solutions.As an enterprise specializing in environmental protection equipment,SWS is affected by the overall economic downturn in the market and the sluggishness of the industry.In recent years,it has adopted a relatively loose credit policy,so that the total amount of accounts receivable has continued to grow.At the same time,as the company entered the overseas market in 2016,the scale of the company's overseas write-offs was growing.Facing the complex market environment and economic fluctuations overseas,the company's accounts receivable management faced new problems.The recent impact of the Qixing Group's capital chain breakage caused the company's huge accounts receivable to be unrecoverable.Eventually,an accrual of 120 million yuan in asset impairment losses was made,reflecting the company's various problems in customer management and collection of accounts.This paper takes SWS as the main case,scrutinizes accounts receivable scale,turnover efficiency,customer concentration and sales collection model from the perspective of the industry and recent major risk events in the industry and from domestic and overseas operations.The characteristics of the company at the same time analyzed the company's current business management process and policy system.The following conclusions have been drawn: First,the imperfection in the management structure is the root cause of SWS's current accounts receivable management.This paper suggests that the company improve the management structure and establish a credit control system for the entire process;second,the customer The neglect of credit management is one of the major issues currently exposed by SWS.This paper attempts to use the credit analysis model and risk warning system to improve the management system.At the same time,it suggests that domestic customers strengthen dynamic tracking management,strengthen overseas customers' prior credit information investigation,and thirdly,lack creditor's rights protection mechanism in the credit sales process,while ignoring high-quality account financing Another major problem with SWS.This paper proposes that international factoring financing should be carried out when the current overseas accounts are centralized and of high quality.The domestic accounts receivable can be specifically tried to factorize or securitize while purchasing credit insurance and strengthening customer credit guarantee.Fourth,SWS's collection and payment management efficiency issues have been highlighted in the huge loss event of Qixing Group.This article believes that the collection level should be strictly divided and a differentiated collection strategy should be formulated.The case studies in this paper aim to improve the level of accounts receivable management in SWS's multinational operations and provide reference for other companies facing similar management problems.