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Editor:admin  Date:2014-08-18  Browse:8244 Text Size Print

Accounts Receivable Management Consultants is a knowledge service industries, it specialized knowledge, information, skills, experience as a resource, providing a full range of accounts receivable management consultancy services. Familiar with the internal credit management and receivables management processes; help enterprises to establish risk control management system of accounts receivable, customer credit management system; solve customer problems and doubtful receivables through lawful means; accounts with a non-litigation cases practical experience in collection of accounts receivable; energy for collection, recovery of receivables work to provide a legal basis; finding a variety of ways, coordinating debtors to meet single paragraph repayment professionals. 
Accounts Receivable Management 

Accounts receivable refers to the business due to foreign sales of goods, provision of services and other reasons to purchase units of labor units or accept payment charge, which is an important part of current assets, and its direct impact on the strength of liquidity funds of enterprises turnover and results of operations. With the development of market economy, enterprises in order to survive and develop, vigorously carry out promotional activities to increase sales volume and market share of products, leading to increased accounts receivable amount. 
So, how to manage good use and make an inventory of accounts receivable in order to strengthen financial security, improve capital efficiency and guard against operational risks, has become an important issue can not be ignored. 
Causes an accounts receivable 
1, business competition. Under the socialist market economy, market competition, enterprises in order to be able to compete in the market place, it is necessary to increase market share, expand market share, improve their economic efficiency. Competing needs for expanding sales of enterprises in addition to the use of product quality, price, brand, service, advertising and other means, the credit as an important means of expanding product sales, is increasingly being used by companies, so they should be produced accounts receivable. 
2, sales realization and receipt of payments time gaps. After issuing goods companies to purchase units out sales invoices and sales revenue recognized in the current period, the purchase price is often not synchronized recovery, leading logistics and capital flow out of touch. This inconsistency payment and receipt of goods sold of time, which resulted in accounts receivable. This is mainly because payment settlement need to take time's sake. Typically, the settlement means the more backward, the longer the time required for settlement. At the same time, distance, selection and internal sales settlement settlement documents between buying and selling units such as timeliness of delivery are likely to generate receivables. 
3, accounts receivable internal mismanagement. Enterprises lack awareness of commercial credit, if not conscientiously fulfill the terms of the contract and the breach or failure to timely treatment because of the quality of opposition, leading to the other party refused to pay the purchase price; due to customer malicious fraud or sales staff absconded, resulting in payments can not be recovered. Corporate credit mismanagement, blindly for bad credit business credit, plus the recovery of arrears ineffective work hard to recover the purchase price and other factors led to the formation of accounts receivable. 
Second, the drawbacks of poor receivables management 
1, cash flow difficulties, enterprise efficiency decline. Typically, enterprise sales, often means the generation of taxpayers, companies may be forced to pay the income tax with a cushion of liquidity. If the business appears book profits, then the annual profit realized to repay dividends to investors, companies may have to advance money to shareholders dividends, which causes increased capital outflows. Thus, on the one hand occupied by corporate receivables lot of money, on the other hand corporate taxes and dividends to advance money, adding to the pressure on the enterprise funds scheduling. In order to maintain normal production and operation, companies have come through bank loans to supplement working capital, resulting in increased financial costs, financing risks increase, increase the burden on enterprises. Meanwhile, companies holding accounts receivable will pay the appropriate price, including accounts receivable management costs, opportunity costs and bad debt losses, etc., will lead to business benefits decline. 
2, lower corporate credit, the impact of corporate image. Enterprise accounts receivable balance is too large, taking up a lot of money, can not be recovered if the expiration, leading companies unable to repay maturing debt, will allow businesses to lose credit, and thus losing the support of financial institutions. Enterprises can not get discounts from suppliers, thereby increasing transaction costs. Meanwhile, the accounts receivable balance apt enterprises to maintain high bad debts. Cause losses to the enterprise, increase the financial risks. Serious and even lead to bankruptcy. In addition, long-term accounts receivable take up too much capital will also affect the corporate image. 
3, inflated operating results, increased business risk. Accrual requirements, companies should recognize revenue in the period in sales, but increase their income does not mean that cash flow can also be scheduled inflows. Under normal circumstances, the formation is closely related to accounts receivable and corporate credit policy, its size is often positively correlated with sales revenue, that revenue growth will lead to growth in the size of accounts receivable. Corporate credit policy is too loose, resulting in the rapid expansion of the scale of accounts receivable, once the money can not be withdrawn from circulation, companies will put on the spot, "a lot of book profits, account funds empty" false prosperity, the accounting profits will be greatly reduced. If inadequate control, corporate profits will be a lot of bad loans and bad debts exhausted. Thus, although the requirements in accordance with the principle of prudence, enterprise according receivable balance - fixed percentage provision for bad debts, but once uncollectible accounts receivable, bad debt losses in excess of actual companies provision for bad debts, will corporate cause actual losses. Therefore, accounts receivable take up too much capital, inflated sales, exaggerating business results, increased business risks. 
4, extended enterprise business cycle, slow capital turnover rate. Business cycle is an enterprise from the beginning to the sales of inventory acquired inventory and withdraw cash until this time, the business cycle is equal to the number of days of inventory turnover and accounts receivable turnover and the number of days. If the corporate credit policy is too loose will cause long-term accounts receivable take up a lot of funds, causing precipitation of corporate liquidity, cash shortages, the impact of capital circulation, extended operating cycle, seriously affecting the normal production and operation of enterprises. 
Third, the management of accounts receivable 
The main purpose of the enterprise is to produce accounts receivable to expand sales, enhance the competitiveness of its management goal is the pursuit of profit. By their very nature, can be seen as receivables invested enterprises in order to expand sales and profits carried out. Accounts receivable management companies must be based on the principle "no cash flow profit is not profit", always put capital returns in the first place. In practice, the implementation of corporate accounts receivable respond before, during and after the entire process control, accelerate repayment of accounts receivable, reduce bad debt and ensure business profits ultimately. 
(A) prior control 
1, customer credit management. 
(A) to build customer profiles, to carry out credit rating. Enterprises should depth and meticulous customer credit investigation, gather customer business nature, legal representative, registered capital, financial condition, business scale, credit and other information, build customer profiles, provide relatively complete and scientific basis for credit evaluation. Enterprises should be based on the quality of customers, ability, capital, collateral, conditions and continuity standards, using qualitative and quantitative analysis for customer credit rating. According to customer credit assessment results, choose quality customer conduct sales operations, establish a sound marketing network. 
(2) the development of the credit limit, the size of the control accounts receivable. Enterprises should be completed according to the customer's sales plan and loan payments situation, to give customers the appropriate business line of credit that a customer is willing to bear the maximum credit limit and determine the length of the credit amount the size and duration. Payment settlement in time for the financial sector, such as billing and reconciliation procedures accurately reflect the customer's credit limit usage to prevent errors. Meanwhile, enterprises should establish a dynamic credit management and early warning mechanisms to manage and control credit, and thus effectively control credit scale enterprises. 
(3) establish a sound credit approval system. Corporate credit granted to customers, and must only hired after the company entered the customer file competent leadership for approval. In the sales process, sales departments should strictly control the volume quota accordingly, shall not be exceeded to avoid salespeople based on the subjective judgment, blind decision loss to the enterprise. If the customer credit limits are changed, you must apply for approval and filing procedures. Meanwhile, corporate credit limit for the implementation of regular inspection and analysis to ensure safe credit limit established. Wins and reasonable. 
2, improve internal sales division, clear job responsibilities, responsibilities put in place. Accounts receivable management is a systematic work, companies should be based on "internal accounting control standards - sales and receivables" provisions, the establishment of personal responsibility, improve sales budget, shipping, warehouse management, rewards, and debts, etc. management system, clear job responsibilities and operational processes. Corporate sales contract negotiations, picking and shipping, billing, collection and other services should go out and completed by staff from different departments to ensure that incompatible positions separated from each other in order to restrict inter-departments, mutual supervision and mutual auditing, avoid fraud. Sales department is mainly responsible for processing orders, contracts, implementation of sales policy and credit policy, payment collection and other work; accounting department is responsible for sales record sum settlement, reconciliation and urge management loan recovery; shipping department is mainly responsible for auditing the sales of shipping documents, Check-picking and shipping, etc.; debt settlement office shall promptly convene debts debt settlement conference to urge the sales department, responsible for accounts receivable and recovery of legal proceedings, the development of debts and appraisal system. The above positions should fulfill their duties, serious and responsible, responsibility to the people, rational incentive to maximize the recovery of accounts receivable, accounts receivable shorten accounts receivable cycles, reduce bad debts. 
3, the establishment of accounts receivable bad debts system, guard against financial risks. According to the "enterprise accounting system", companies should analyze the recoverability of accounts receivable in the period, and is expected bad debt losses that may arise. According to the requirements of the principle of prudent, business-to-expected bad debt losses may occur in provision for bad debts. Enterprises should develop a policy provision for bad debts, a clear provision for bad debts range, extraction method, classification and extraction ratio aging of other matters. Companies can make their own determination Provision method, the method has been established, shall not be changed. 
4, to carry out credit business training. Through the sales staff credit business training, establish risk awareness, improve their professional ethics and business skills, to analyze the causes of accounts receivable, measures and responsibilities, describes methods and skills receivables, as well as methods of customer credit evaluation enhanced awareness salespeople. 
(Two) things in control 
1, strengthen contract management, standardize business practices. Implementation of enterprise sales contract management system, authorize the person with a contract of sale with the customer. For a significant amount of the sales contract shall be reviewed by legal counsel and other professionals checks. Without authorization, no person shall freely contract of sale. Enterprises should carefully review the contract to carry out the work, the subject raised by customers, quantity, quality, delivery, place of delivery, method of payment and breach of duty to carefully review and decide whether to accept the order. Once accepted, the enterprise according to the contract requirements of production and delivery, to ensure the full performance of the contract. Upon the signing of the sales contract shall not be changed, subject to change sides should fully negotiated, agreed after the signing of a supplementary contract or a new contract in order to safeguard the legitimate rights and interests of both buying and selling. 
2, to strengthen the management of the sales process. Of receivables, issuing bills of lading, shipping, billing and other aspects of management, is the key to control of accounts receivable. 
(A) receivables. Customer payment sent, the financial sector should be promptly issue receipts, and accounting treatment. For received drafts, checks and other formalities in time for receivables; received acceptances for banks to handle inquiries in a timely manner, to ensure real and effective. 
(2) issuance of bills of lading. Control contract issued bills of lading according to customer requirements, and sent the customer to sign. 
(3) shipped. According to the bill of lading shipping transport sector organizations to ensure that the goods specifications, model number is correct. 
(4) settlement. After delivery, according to the bill of lading and other invoiced to customers in a timely manner, for the payment settlement. 
3, select the advanced settlement. Enterprises should be possible to select a favorable settlement on their own, accelerate capital returns, reduce capital transit time. Enterprises may agree in the contract purchaser must take delivery models, or not delivery, to ensure the timely repayment of loans. In addition, companies can also use Internet banking, real-time exchange settlement and other advanced means to accelerate capital returns. 
(Three) after the control 
1, the implementation of internal audit work sales. Enterprise implementation of regular or irregular conduct special audit sales, check sales internal control system to prevent misappropriation occurred due to mismanagement, corruption and CPB funding and other issues, reduce business risk. 
2, the establishment of accounts receivable aging analysis of accounts receivable collection system and the system. Financial authorities should carry out the aging analysis of accounts receivable, accounts receivable recovery supervise. Through analysis, companies can determine how much debt the credit period, the number of arrears over the credit period, the proportion exceeding the length and amount of time, and how much debt will be due in arrears for too long may become bad debts. Accordingly, the age difference between the length of the enterprise, to develop economically viable receivables policy and adopt flexible Dunning way (such as correspondence, telephone contact, home Dunning and resort to legal means, etc.) Dunning money to try to recover arrears . 
3, the implementation of loan repayment performance assessment and accountability. "There is no assessment of management is ineffective management, there is no quantitative indicators of appraisal is invalid assessment." Enterprises should press "who sells, who receivables" principle will be paid to each sales person to return the body break down and develop practical payment plan, clear payment amount and duration. Monthly loan repayment plan based on the completion of the sales staff performance appraisal, cash in bonuses. Due to human causes for uncollectible amounts, sales staff accountability, and ordered it to compensate, serious held criminally responsible. 
4, the periodic reconciliation system to ensure that the correct amount of valid claims. Corporate finance department shall regularly, or at least annually by the end of confirmations, etc. with the customer check book balance of accounts receivable, avoid errors and save relevant materials to ensure the continuation of legal recourse debt. Because of the statutory period is overdue receivables recovered two years after the loss of validity of enterprises the power to recover the debt, companies must strive to recover the money or made to extend the validity of the relevant evidence in the period, such as billing, payment plans, etc. . 
5, a special meeting held regularly accounts receivable, credit growth and credit policy for the implementation of tracking and analysis. Full and timely recovery of receivables directly affect cash flow and results of operations. Business leaders must attach great importance to the accounts receivable management, attention to the timely recovery of accounts receivable, accounts receivable held regularly organized staff a special meeting on the implementation of the credit policy to be checked, analyzed the causes of accounts receivable, to evaluate its and potential risks rationality, develop appropriate countermeasures, the implementation of staff, to take effective measures to solve the problems. 
In short, the enterprise according to the principles of cost-effectiveness, develop a reasonable credit policy to control the size of accounts receivable. At the same time, companies should always put money withdrawn from circulation in the first place, the whole process of control of accounts receivable, increase collection efforts, credit growth accelerated to ensure the timely and full realization of income inflow businesses, thereby avoid business risks.

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