Internal Factors Of Poor Accounts Receivable Performance

The internal management control is not good, for example, the quality of the payee is not high, and the problems in the process and procedure are bound to cause the accounts receivable to be uncollectible.

The internal management and control of enterprises have the following aspects.

The poor quality of business personnel is the root cause of poor performance of accounts receivable, and the first reason for bad management is the low quality of business personnel.

The low quality of business personnel is reflected in the following aspects.

1. lacks the concept of total sales. "Full sales" means that business people not only sell products, but also recover money in time.

Some business people lack the right idea, that is, no idea of total sales. He thinks he only sells products, and the rest of his work has nothing to do with himself.

Credit pactions are different from cash pactions. Business personnel only get a bill signed by customers, which is just a certificate of bond. This bond certificate is not equal to cash. Therefore, business personnel should try their best to collect money and exchange bond certificates for cash, so that the sales process is complete sales.

2. has no plan to recover money. The business people should have a comprehensive plan for collecting money, and there should be a reasonable plan for collecting, visiting, delivering bills and delivering bills.

Because at the end of the month, manufacturers will compete to collect money. In this case, to ensure that they get the money, you must make good plans for recycling, arrange the route list, and make good preparations before the event.

Generally speaking, business personnel have not done enough in these respects.

3. customers want to make payments as late as possible. If business people actively or severely urge customers to make money, they will make their customers unhappy. In order to win the next order, some business people will not work hard enough to pay for the money, so they can easily promise to pay a few days later.

4. business personnel lack the skills of collecting money. The company has done pre service training for many business people. Most of these pre job training are product expertise, market knowledge and sales knowledge, while training on knowledge and skills of collecting money is very few. So when business people go to collect money, they will inevitably encounter problems, and they will not be able to deal with problems, and accounts receivable performance will not be good.

The second main reason for the poor performance of accounts receivable supervision is that supervisors are not active enough.

Business personnel can not recover the payment in time, and the supervisor should bear the main responsibility, because the supervisor should not only urge the business people to complete their performance, but also urge him to recover the money in time, and the supervisor's supervision is not active enough, mainly in the following aspects.

1. is negligent in duty, and has not done a good job in age analysis. The supervisor is not responsible for his duties. He has not done a good aging analysis. The so-called age is the age of accounts receivable. The greater the age of accounts receivable, the more likely the risk of recovery will be. Therefore, in order to ensure that accounts receivable can be recovered quickly and safely, business executives should regularly do an accurate analysis of accounts receivable aging.

Many business executives are often busy selling their sales results without carrying out the aging analysis, so they can not urge the business people to recover the money in time.

2. has not formulated the implementation target of accounts receivable recovery. The business executives only focus on assigning performance tasks, arranging business personnel to complete their sales performance, but rarely make the implementation targets of accounts receivable recovery, and allocate recovery tasks.

3. training is not enough. The business executives do not have enough training for the business people to collect knowledge, nor have they imparted the way to deal with the difficult problems to the business people. Lack of training and experience has led to a weak ability to receive business personnel.

Due to the weak ability of the business people to collect money, the proportion of money recovery will not be very high.

4. oversold the sales manager of the company to promote the sales of products by the salesmen, causing the business personnel to only sell, but excessive sales easily made the business people do not have enough time to recover the money. This is also an important reason for the poor performance of accounts receivable, and the supervisor should bear the main responsibility.

5. judgment error, the business supervisor is not careful and accurate in judging the customer's purchase potential or the sales potential of the customer, which will inevitably lead to the failure to recover the payment in time.

According to accurate judgement, the actual purchasing power of a customer is 1 million.

And you do not carefully judge the actual purchasing power of the customer, just blindly think about it, even want to sell more, and finally you sold the customer 2 million.

Through excessive sales, the performance has been achieved, and the superior supervisor has also had a good explanation.

However, at the end of the month, accounts receivable account for only 1 million of the customer's actual purchasing potential or his consumption potential, and at most he can only pay 1 million.

But the company's accounts receivable is 2 million, only 50% of the accounts receivable, which is no accurate judgement of customer purchasing power adverse consequences.

If 6. lacks reward, it will be a brave man.

Most of the companies do not give timely and necessary rewards to the business representatives who receive fast, high proportion, and less bad debts, resulting in low enthusiasm for the work of the business representatives.

In order to improve the performance of receipts, business executives must cooperate with the company to set up an incentive measure and system to give timely incentives to those who receive money quickly, have a high rate, and do not even have bad debts, and give additional subsidies and subsidies.

7.'s lack of knowledge is not only a lack of cognition of business personnel, but also some executives only sell products through past concepts and experiences. They do not have the concept of complete sales and correct financial strategy and financial concepts to help companies recover money in time.

Therefore, business executives must cooperate with the company's capital and finance and policies, formulate an effective collection plan and targets to supervise business personnel to actively complete accounts receivable recovery.

8. the relationship between supervisors and customers is very emotional. The relationship between a supervisor and a customer is very good. He does not actively urge his business people to recover money. The interference between supervisors and customers will inevitably cause too much backlog of accounts receivable.

It is the internal reason why the supervisor is not able to collect money in time because of his emotional attitude.

In the event of any of the following situations, enterprises should stop issuing credit in time to avoid unnecessary losses.

A when the check is overdrawn, the B draft takes place more than two times, and C pays more than one time.

The third main reason for the poor performance of accounts receivable is that the recovery period of accounts receivable is lengthened.

The reasons for the recovery of accounts receivable are mainly for the following reasons.

1. the procrastination procrastinating customers can drag on, drag on as long as possible, and pay as late as possible.

Therefore, when the customer's procrastination tactics are successful, the time limit for the recovery of the accounts receivable will be lengthened accordingly, which will allow customers to delay payment.

2. is guilty and concession. When business people hear their customers say, "the payment time is longer than yours", business personnel often make a concession in order to ensure that they do not lose this customer. They will be able to receive the payment in one month, and will usually drag for two months or even three months.

3. does not stipulate that there is no clear or strict provision for the time of money recovery by the supervisor or company. In order to ensure that customers will not lose their customers, business personnel often make improper extension of the collection time. This is also one of the main reasons for the extension of the recovery period of accounts receivable.

Therefore, when stipulates the sales amount and quantity of business personnel, the company also stipulates a definite period of recovery.

4. is a big fan of human relationships. Sometimes business people only lay the foundation for their own human relationships and offer flowers to Buddha. At this point, they sacrifice their interests to the customers and delay their payment time.

Such a practice will naturally prolong the recovery period of accounts receivable.

5. has a limited potential to purchase goods, and business personnel have an account of the company in order to achieve their performance. They often force goods, which will inevitably lead to the failure to recover money in time and extend the time limit for the recovery of accounts receivable.

The actual sales volume of a customer is 10000 yuan per month, and the salesman has persuaded the customer to purchase more than 5000 yuan of products in order to achieve his performance. The accounts receivable is 15000 yuan, with a three inch tongue.

The fact that customers can actually sell out is only 10000 yuan. What the customer thinks at this time is: "this product is not easy to sell, so the time limit for payment is naturally extended."

Therefore, the forced stoppage of goods by business personnel will also lead to the extension of the recovery period.

The fourth main reason for the poor performance of accounts receivable is that the amount of discount is too large.

The company reclaims part of the money and gives profits to customers. Discount is to give customers a discount.

There are four main reasons for excessive discount.

1. does not expressly stipulate that the company does not expressly stipulate the discount criteria for salesmen to sell products, and the company itself conforms to the fact that the business personnel can make it available, which will result in too much discount.

For companies, if the discount amount is too much, the profits of the company will naturally decrease correspondingly.

2. prices fluctuate. Under market economy, the price of products fluctuates frequently along with the continuous changes of market economy.

Once the price rises, business personnel do not know the price of the price in time, so the customer will lose. When the payment is made, the customer will ask for a discount.

3. insists that if the accounts receivable is 10100 yuan, the customer will only pay 10000 yuan and make 100 yuan as a discount.

In order to ensure that customers do not lose, business personnel often do not insist on the original accounts receivable, which is equivalent to 1% of accounts receivable did not recover, which is a great loss to manufacturers.

4. management is improper. The business supervisor of the company also connived his subordinates. He often did not investigate the money that he could not get back, so that if every member of the business could get a portion of the money back, the amount of the discount would be accumulated to a huge figure, and the sales profits of the company would be greatly lost.

The fifth reason for the bad performance of accounts receivable is too many returns.

Customer returns are mainly for four reasons.

1. judgment error. Excessive sales often cause too much backlog of customers. In order to alleviate inventory backlog, customers are required to return products, of course, the best choice for customers.

Returns for manufacturers are accounts receivable offset, so that the company will not be profitable.

Not only that, the company will cause a lot of undue losses, such as loss of management cost and loss of confidence and cost of business personnel. These losses are very large.

2. is not a manufacturer. It should try its best to help customers sell products in the fastest time.

If the customer's products can not be sold in time, he will not be able to repay the goods accordingly, and the manufacturers will not be able to recover the money in time.

The result can only be customer returns.

3. when goods are stored for too long, the goods stored for a long time will naturally become an outdated commodity. Consumers will lose interest in such products. Customers will also ask for a refund. When the goods are stored for a period of time, customers will also withdraw their products because of poor market sales.

So too long storage time is also one of the reasons for customers to return.

4. strives for the performance of the sales force. In order to achieve greater performance and over sell products, the result is not that the customers extend the payment period, or the goods are returned to you. Therefore, excessive sales of products for the sake of performance also result in too many returns.

The causes of poor performance of accounts receivable are mainly divided into two aspects: external environmental impact and inadequate internal management control.

Faced with the difficulties of collecting money and the lack of internal management control caused by various external environmental conditions, the collection will become more and more difficult. How should we improve the performance level of accounts receivable?

There are two main aspects: (1) making things happen, standardized management processes and methods can effectively recover the money quickly; second, the concept decides the result, from the general manager to the business personnel.