Research On Status And Optimization Of Accounts Receivable Management Of GREE Electric Appliances

With the continuous development of China's home appliance industry and the continuous improvement of people's living standards,various enterprises have entered the home appliance market one after another,resulting in the unprecedented popularity of the home appliance market and the increasingly fierce competition.Judging from the current commodity economic situation,various companies have formed a trading model based on commercial reputation.Credit sales have gradually become a means for all major power companies to expand their market scope,increase product sales and increase corporate income.As a result,the credit sales business has gradually become the top priority of the home appliance business,and the management problems of the accounts receivable have become increasingly prominent.As a key part of a company's current assets,accounts receivable are funds that should be collected from the purchasing unit,including the purchase of products or the provision of labor services,during the daily management process of the enterprise,due to the sale of goods and the provision of quotation services.Taxes,labor services,and various incidental expenses paid by the purchaser's representative.In essence,accounts receivable is a form of creditor's rights,which is mainly caused by the sales of products and labor services provided by enterprises.Therefore,for income and accounts receivable,the confirmation of the two has a certain relationship.Under normal circumstances,along with the confirmation of income,the corresponding accounts receivable can be completed at the same time.It will increase the risk of the company over time before being taken back.If a company's receivables cannot be recovered in time,then the company's liquidity will not be able to turn normally as time goes by.At the same time,it will hinder the implementation of relevant business operations,which will cause serious financial problems,affect the future investment and development of the enterprise,and even worse,the enterprise may lose its viability,and ultimately the enterprise can only go to the end of bankruptcy.The risks brought by the company's accounts receivable are diversified.There are many reasons for affecting the liquidity risk of a company.It is more intuitive to see how much the total amount of accounts receivable accounts for the current assets of the enterprise.The age of the accounts receivable is long.If the proportion of accounts receivable in the short-term amount of total liquidity of the enterprise issmall,the chances of this part of the accounts receivable being recovered will be great.If the age of the accounts receivable is shorter,the chances of being recovered will become larger.If it has not been recovered for more than three years and remains on the account,and this part of the accounts receivable has not been accrued for bad debts,it can be called bad debts.When there is too much bad debt in the account of a company,it means that the quality of the company's accounts receivable has reached a particularly bad state.At this time,the company must take certain measures for the company's future development plan.The measures do more work in the management of accounts receivable,and they are reasonably controlled and supervised.The debt company's credit amount and credit period can be specified by analyzing the credit level of the customer and its financial situation.Companies must have their own management model for their receivables.The management method that suits their own situation will help them improve their management and increase the liquidity of their funds.The reasonable control and management of the receivables are of great significance for the company to maintain cooperation with the customer to ensure the mutual benefit,improve the quality of the company's capital chain,and speed up the cash flow.This article starts with the home appliance industry.Taking Gree Electric Appliance Co.,Ltd.as an example,it conducts research and analysis on the management of accounts receivable of the enterprise.By looking up the financial statements of Gree Electric Appliance in recent years,it extracts data related to accounts receivable and analyzes the company.The status quo of accounts receivable management,found that Gree Electric Appliance Company has problems in recent years,and engaged in pre-management,in-process management and post-event management to conduct research and propose appropriate solutions.It has reached the goal of extending the analysis of accounts receivable management of specific case companies to the study of accounts receivable management of the entire home appliance industry.