Research On Internal Control Improvement Of KS Company’s Accounts Receivable

At present,the development of China’s SMEs faces many challenges and risks,and the issue of internal control of accounts receivable is particularly acute.In terms of internal control of accounts receivable,many enterprises do not pay attention to the construction of internal control mechanisms,resulting in a large amount of accounts receivable on corporate accounts,with high recycling costs and high risks.The security of accounts receivable directly affects the available resources,profit and loss,cash flow of the enterprise,and even affects the development and growth of the enterprise.This problem is also plaguing KS.KS is a third-party after-sales service company dedicated to medical equipment maintenance services.After the reorganization of KS company at the end of 2015,it changed the company management model and reversed the chaotic situation of financial management.In general,there are still many problems with KS company accounts receivable.The specific performance is as follows: the accounts receivable are large in scale,the growth rate is fast,and the recovery rate is slow.The bad debts of KS company accounts receivable are not accrued and the risks are high.Although KS has a relatively small proportion of accounts receivable for more than one year,it has been on an upward trend in the past three years.The payment cycle of customers has been prolonged,and the rate of receivables has slowed down,resulting in a long cycle of the company’s capital.In the long run,it is not conducive to the effective operation of the company’s funds,there are certain risks,and it is necessary to discover the management problems of its existence from the perspective of internal control.The internal control of KS company’s accounts receivable is not reasonable enough,the credit management needs to be strengthened,the process management is not strict,the information communication is not smooth,and the monitoring quality is not high.From the control environment,risk assessment,control activities,information communication and internal The reasons for the analysis of the internal control problems of KS company’s accounts receivable include: the enterprise’s internal control awareness is weak,the credit risk assessment mechanism is imperfect,the internal control system is not perfect,the communication mechanism is lacking,and the enterprise pays attention to the key performance.In order to promote the sustainable development of KS company and optimize existing management measures,it is necessary to proceed from the macro-,meso and micro perspectives,from the five elements of internal control,improve the organizational structure of the company in strengthening the construction of internal control culture,and strengthen the construction of credit management.Improve the customer risk assessment mechanism,promote the internal control system construction in the process improvement,improve communication and communication in the optimization of information network construction,and improve the quality of internal control monitoring in the investigation of leaks.