Research On The Improvement Of Accounts Receivable Management Of ZX Construction Enterprises

With the orderly advancement of the national “Belt and Road” policy and the increasing scale of investment in fixed assets in various places,construction companies have ushered in tremendous development opportunities in the new market environment.However,as the number of construction enterprises in China has also increased,the market competition has become increasingly fierce,and the buyer’s market has gradually formed.Many construction companies will compromise on the construction unit in order to seize market share in time.Knowing that the construction unit has limited capital strength and incomplete project approval procedures,some enterprises have signed a construction contract with the contractor for a lower payment ratio,node payment,or commitment to fund the contract terms of the project in order to obtain the contract,which results in accounts receivable.The payback period was lengthened and the capital turnover rate slowed down,resulting in the fact that the project funds could not be recovered as scheduled until the project was completed and settled.On the one hand,this kind of behavior leads to difficulties in the turnover of its own funds,on the other hand,the risk of bad debts increases,and the quality of profits declines,which seriously limits the operation and development of enterprises.Therefore,to improve the importance and research level of accounts receivable management,it has a very positive effect on enterprises need to actively improve the quality of accounts receivable and ensure the sustainable development of enterprises.This paper takes China Construction West Corporation(hereinafter referred to as ZX Construction Company)as the research object and discusses the problems in its accounts receivable management.Firstly,on the basis of combing the relevant theories of accounts receivable management at home and abroad,the paper elaborates the related theories of credit policy,credit evaluation and bad debt management in accounts receivable management.Secondly,understand the basic situation and operation status of ZX construction company,analyze the occurrence and recovery of accounts receivable in depth,and compare and analyze the accounts receivable of similar construction enterprises in China,and then find the lack of quantitative credit evaluation beforehand.In the event,the project was heavily funded and the problem of weak accounts receivable was pursued afterwards.Thirdly,according to the status quo and problems of ZX construction company’s accounts receivable management,from the establishment of credit evaluation system,the implementation of the accounts receivable process control,improve project clearing and bad debt management to improve the design.Finally,in order to ensure the implementation of the improved design of the accounts receivable management of ZX Construction Company,the management has attached great importance to it,and has strengthened the financial management concept and relevant functional departments to cooperate with the organization to ensure the development and improvement of credit evaluation and receivable.The accounting process management and clearing and other related system guarantees,and strengthen the construction of the fund management information platform,from three aspects to implement the receivables improvement design program to escort.This paper believes that,first,through the construction of a credit evaluation system to screen customers and credit rating,and combined with the rating results to decide whether to continue to cooperate with customers.Second,through the establishment of project cash flow calculation to improve the daily control of accounts receivable,and combined with the fund management information platform for real-time monitoring.Thirdly,through the bad debt management and receivables collection policy,different clearing policies are established for customers of different credit ratings,the bad debt risk identification method is improved,and the dynamic early warning mechanism of accounts receivable is implemented.The significance of this paper is that it can enable ZX Construction Company to strengthen the management of receivables,Through credit evaluation,process control,after-the-fact debt clearance and bad debt management,effectively reduce the size of accounts receivable and improve the turnover rate of funds,thereby achieving Enhance the purpose of corporate cash flow.The second is the optimal design of accounts receivable management of ZX construction company,which has reference and reference for the management of accounts receivable of similar construction enterprises in China.