Study On Construction Enterprise Accounts Receivable Management Mode

With the rapid development of my country’s economy,the construction industry has naturally become more important in economic development.The great contribution to employment has also led to a series of problems in the construction industry due to fierce internal competition.As we all know,construction companies have the characteristics of long construction period,large amount of money,and difficult construction technology,which leads to insufficient capital flow in the process of the company,and then generates a large amount of accounts receivable.The accounts receivables of construction companies are longer and more difficult than other industries,which greatly increases the probability of accounts receivable being converted into bad debts,which may cause the company to face bankruptcy.Therefore,it is very necessary to study how to effectively prevent and control accounts receivable.Management of accounts receivable can greatly improve the company’s capital utilization rate.Based on the analysis and research of accounts receivable management and other related literature,this paper starts with the characteristics of construction enterprises,takes X Company as the case study object.Through the study of the field survey of X company,combining with its management pattern and the accounts receivable management system,financial data receivable from the beginning in 2016,company X in the steady revenue growth at the same time,the balance of accounts receivable in 2017 downward trend year by year,especially in the 3 years of accounts receivable collection effect is significant.Through the analysis of X Company’s accounts receivable turnover rate,it is found that although its turnover rate is slightly higher than the average value of construction enterprises,it shows a downward trend on the whole,which further illustrates the unique characteristics of long cycle and slow payment collection in the process of construction enterprises’ accounts receivable management.In this paper,analyzing X company accounts receivable management,refine the enterprise good practice and promote it.The final paper puts forward using the advance of the management of account receivable,manage the whole process of approaches,set up complete accounts receivable management system,for the construction enterprises to provide the reference in the management of accounts receivable.