HTC’s Accounts Receivable Financial Risk Control Study

The phenomenon of financial fraud of listed companies is repeatedly prohibited,and these financial fraud not only harms the interests of relevant investors,but also disturbs the normal operation of the securities market.Accounts receivable is formed by the company in the process of selling goods or providing services on credit,and its management level has a direct impact on the turnover of the company’s funds.Whether the management of the financial risk of the company’s corresponding accounts has an effective direct impact on the flow of the company’s funds and the realization of benefits,but also directly affects the company’s asset operating capacity and cash flow.As we all know,the mobile phone manufacturing industry is a light asset industry,accounts receivable are generally higher.The characteristics of the manufacturing industry chain are long industrial chain,many participants and private,small and medium-sized enterprises.If a link of capital problems,may affect the upstream and downstream enterprises through the industrial chain.In recent years,reports of poor management and even fraud in the accounts receivable of manufacturing enterprises have been heard,and a small number of enterprises have gone bankrupt as a result.After analyzing the accounts receivable of HTC Corporation,Xiaomi Group,Industrial Fulian and Wisdom Haipai four mobile phone manufacturing enterprises in Taiwan Province of China,it is not difficult to find that the current backlog of accounts receivable has become more common,and in today’s fierce market environment under the impact of the "domino effect",causing the transmission of credit risk.The continuous growth of accounts receivable will bring some hidden dangers to the operation and management of enterprises.Therefore,it is of great significance to strengthen the financial risk management of accounts receivable and improve the management mechanism of accounts receivable risk.The large number of credit sales behavior of HTC Corporation,a listed company in Taiwan Province of China,is to some extent conducive to enhancing the market share of the company’s products and enhancing the new customer’s sense of identity with themselves.However,with the passage of time,a large increase in credit sales behavior will lead to a surge in the total amount of accounts receivable,at the same time,the length of accounts receivable account period,increased the difficulty of account recovery,these aspects of HTC’s normal production and operation and sustainable development capabilities pose a greater challenge.Therefore,the correct risk management of accounts receivable is of great significance to the long-term development of the company.This paper first analyzes the operating situation of HTC company,then analyzes the current situation of accounts receivable management and the financial risk control status of accounts receivable from qualitative and quantitative aspects,and finally improves the financial risk control process of accounts receivable,changes the management concept of accounts receivable risk control,strengthens the management mechanism of accounts receivable control,establishes the company’s accounts receivable risk control system,etc.,and improves the level of financial risk control of accounts receivable.For accounts receivable,different industries have different levels of set-up ratios and supervision systems.By studying HTC’s case,it provides lessons for domestic mobile phone manufacturing enterprises.