The Research On The Management Of Accounts Receivable In Company A

Currently,the economic growth of China has been decreasing by years,which brought more difficulties to the industry’s development.In this case,small-and medium-sized enterprises has to rely on credit sales to expand sales and improve enterprise competitiveness because they are lack of resources and the ability to operate a variety of products to spread risk,and also cannot organize mass production to compete with large enterprises.Thus,sales on credit has directly lead to the increasing of small enterprises’ accounts receivable,which also makes the management of accounts receivable being one of the most important factors influencing the development of small and medium-sized enterprises.Using the method of case analysis,this paper selected A company,which is a small and medium-sized enterprise engaged in manufacturing industry,as the research object,analyzes problems existing in the small and medium-sized enterprises in the management of accounts receivable,and further discusses how to improve the quality of accounts receivable management of small and medium-sized enterprises.Firstly,this paper conducted a review of literature at home and abroad about the accounts receivable management,which is mainly focus on the building of credit system,accounts receivable quality evaluation methods,the financial quality of accounts receivable and so on.On this basis,this paper comes up with the theoretical basis,including the basic concept of accounts receivable management and the accounts receivable management theory.Secondly,this paper studies the receivables management of A company,using financial data related to accounts receivable for quantitative analysis,and the enterprise organization structure and working process for qualitative analysis.It turns out that the quality of A company’s accounts receivable is not good;big customer management does not reach the designated position;credit policy is too rough;a dedicated credit management department,bad debts management system and information management platform has not been established;accounts receivable financing business has not been put forward.Finally,the paper gives suggestions to improve the quality of accounts receivable,which includes involving the accounts receivable management into the enterprise strategy;setting up a specialized credit management institution,a bad debts management system and a information management platform;correcting the credit evaluation and policy system;doing accounts receivable financing business.These suggestions could help small and medium-sized enterprises in similar industries improve their quality of accounts receivables.