Research On The Internal Control Of XD Technology’s Purchase And Sale Business

In recent years,along with the continuous changes in the market economy environment,China has been paying more and more attention to innovation development.The report of the 20 th Party Congress proposed that innovation is the first driving force,further indicating the direction to adhere to innovation development.As an emerging development force,high-tech enterprises are gradually revealing their important potential in promoting high-quality development of the national economy and leading innovation breakthroughs.In order to further promote the development of high-tech enterprises,the state has increased its support in various aspects such as tax incentives,financial subsidies and financial support.However,with the rapid development of high-tech enterprises,the design,operation and improvement of their internal controls are increasingly revealing inadequacies and problems.How to effectively improve their internal control at the system and implementation levels,prevent and cope with enterprise operation risks,and promote sustainable and high-quality development of enterprises is an important issue of great concern and research in both theory and practice.This paper takes XD Technology Limited(hereinafter referred to as XD Company)as the case study object,mainly using literature research method,case study method and field research method to analyse and study the internal control of enterprise procurement and sales business.XD Company is a technology company in the software and information technology service industry,the company mainly provides educational software,cloud services,consulting,training and other products and services.In recent years,under the background of enjoying many national policies and dividends,the company’s businesses have been developing rapidly and its financial position and operating results have been greatly improved.However,in-depth research has revealed that there are still certain deficiencies and shortcomings in XD’s existing internal control system,in particular,the following problems exist in the internal control of procurement and sales operations: imperfect supplier selection and maintenance systems,risks in raw material acceptance,inadequate management of procurement contracts,inadequate customer credit management systems,lack of effective performance incentive systems,and poor management of distribution partnerships.This paper provides a detailed analysis of the above problems and makes the following suggestions for improving internal control of XD’s procurement business: firstly,standardise the selection and management of suppliers,secondly,strengthen the supervision of the raw material acceptance process and post-purchase evaluation,thirdly,improve small-scale procurement,fourthly,improve the management of procurement contracts,and fifthly,strengthen the control of prepaid accounts;in terms of internal control of sales business,it is recommended that XD should XD should further improve the management of accounts receivable and customer credit,improve the performance incentive system and strengthen the management of distribution partners.The conclusions of this paper on the internal control of XD’s purchase and sales business are intended to improve the internal control of XD’s purchase and sales process,effectively prevent various risks in its purchase and sales business to promote the company’s high-quality development,and also to provide reference for the design and optimisation of internal control of purchase and sales business of similar high-tech enterprises.