Research On Accounts Receivable Management And Risk Control Of BC Company

With the rapid development of global economic integration and the rapid development of the market economy,the chinese economy has entered a period of new normal.Small and medium-sized enterprises have ushered in a new round of development opportunities.While flourishing,they also face the challenge of stimulating market competition.Unlike large enterprises,small and medium-sized enterprises are limited by factors such as business scale,capital status,and influence.In order to capture the market faster,most small and medium-sized enterprises use credit sales to expand sales.Although this model has a certain effect on credit in the short term,businesses can increase sales,with the increasing amount of credit,the company also will increase the size of accounts receivable,and the risks it faces are increasing.The development of the enterprise has brought about serious business crisis.The formation of accounts receivable is partly due to the inadequate construction of China’s credit system,but to a greater extent because under the accrual system,the enterprise’s own management is not perfect,and there are loopholes in capital control.Therefore,accounts receivable management and risk control,capital management to improve efficiency,reduce financial risk and increase operating income,to ensure the sustainable and healthy development of great significance.This article uses a case analysis method,selects a small and medium-sized corporation BC company as the research object,analyzes the current status of its accounts receivable management,points out its risks and reasons,and makes recommendations based on this.Based on the theoretical literature of domestic and international accounts receivable management,this paper selects the financial data of BC company in the past three years,and uses the analysis methods such as proportion,trend,and contrast to analyze the scale and quality of accounts receivable.Combined with accounts receivable management processes,organizational structure,this paper analyzes the current status of BC company accounts receivable management and its impact on the company’s financial strategy.It analyzes several major risks of BC company accounts receivable,mainly including customer credit risk,financial risks,organizational risks,legal risks,reputation risks,and explain the reasons for their existence from both internal and external aspects.Finally,based on the risks of BC company accounts receivable management,we propose improvement suggestions in three aspects: before,during,and after.Integrate the management of accounts receivable into the development strategy of the enterprise,improve the management mechanism and customer credit system,standardize the company’s contract management,maintain dynamic management and supervision of corresponding accounts receivable,standardize the collection system,and take appropriate measures to transfer the risk of accounts receivable.It is hoped that the research on BC company accounts receivable management could help BC company to better manage its accounts receivable,reduce risks,improve the control of accounts receivable,optimize asset structure,and increase business efficiency.I also hope to provide some references and suggestions for the receivables management and risk control of small and medium enterprises in the same industry.