Research On Accounts Receivable Management Of HZ Company

With the rapid development of Chinese economy and the intensification of market competition,more and more enterprises began to sell on credit in order to expand sales revenue and increase market share.The amount of accounts receivable of these enterprises is increasing,their bad debt losses are also increasing,the management of accounts receivable has been paid more and more attention.Hz Company is a medium-sized listed company which is engaged in the production and sales of ultrasonic flow-measuring apparatus,its products are the most intelligent among the major domestic manufacturers.Consequently,the HZ Company is in the rising development stage.In recent years,due to the continuous expansion of sales scale,the amount of accounts receivable has increased significantly,but the management effect of accounts receivable is not ideal in whole.How to strengthen the management of accounts receivable has become an important problem for HZ company.Based on the financial indicators and management process of accounts receivable,this paper analyzes the management quality and existing problems of accounts receivable in HZ Company.The accounts receivable of HZ Company are large in scale,fast in growth and long in accounting period,the main reasons for this situation are that the contract management is not strict,the credit management is not scientific,the system is not well implemented,and the customer information is rigid and distorted.Based on the credit management theory and the whole process management theory of accounts receivable,this paper presents a detailed improvement plan in three stages,the purpose of which is to provide a valuable reference for the accounts receivable management of HZ Company.The three stages are pre-the matter,in-the matter and after-the matter.In the ex-ante management,the HZ Company needs to set up a specialized credit management department to manage accounts receivable and improve the credit assessment system,it can play the role of coordination,supervision and dynamic management.In the on-going management,HZ Company shall standardize its approval process for credit sales,and its employees should always keep an eye on the financial status of customers.In the ex-post management,HZ Company needs to improve the collection mechanism of accounts and actively transfer risks.When selling on credit is inevitable,through the above analysis and improvement measures,HZ Company can effectively improve the management defects that only pay attention to collection in the past,and shift the focus of management to prevention and control in advance.The whole process management system of accounts receivable can reduce the company's bad debt loss,accelerate the company's capital circulation and promote the company's sustainable development.In this paper,we hope to take HZ Company as a reference to provide useful enlightenment for the domesticmedium-sized manufacturing enterprises which are in the stage of production expansion.