Risk Prevention Of Accounts Receivable In Enterprises

In the environment of market economy, enterprises should speed up. Promote Besides relying on product quality, price, after sale service and advertising factors, credit sale has become one of the marketing measures, resulting in accounts receivable. Accounts receivable is a sum that should be charged to customers by selling goods or services by credit sale. As an important part of the management of working capital, accounts receivable management directly affects the turnover and economic benefits of the working capital of enterprises. Therefore, enterprises should set up a risk prevention mechanism for accounts receivable according to their own actual conditions, and control them from the source and prevent them from happening. The author believes that the risk prevention policy of accounts receivable should include the following aspects:

First, develop credit on credit sale. policy

1. credit terms. The credit terms commonly used by enterprises include credit sale period and cash discount two contents. For example, credit The condition is "2/10, N/60", that is, the customer can pay 2% cash discount for payment within 10 days, and the payment should not exceed 60 days at the latest. To provide such credit conditions for customers is also the result of their own trade-off between profits and costs, profits and risks.

Credit sale period. There is a certain dependence between product sales volume and credit period. Generally speaking, the longer the credit period, the more sales. But it should also be noted that improper extension of the credit period is bound to bring two adverse consequences to the enterprise: on the one hand, the average balance of accounts receivable will increase, the payback period will be extended and the cost of capital will increase; on the other hand, the loss of bad debts may increase. Therefore, when providing credit conditions to customers, enterprises must first determine a reasonable credit sale period.

Cash discount. Extending the credit period will increase the occupation period and amount of accounts receivable. In order to get the money back as early as possible, the cash discount will often be extended to customers when the credit period is extended. Undoubtedly, this is of practical significance to solve the problem of accounts receivable in enterprises at present, and many enterprises have not made use of or neglected this kind of credit means. The discount of cash discounts is actually the deduction of the selling price of products, the reduction of sales revenue, and the degree of discount that enterprises are willing to offer. The most important consideration is whether the income after discount is greater than the discount cost.

2. credit standard. Customers should analyze and judge the credit sale credit from the following aspects:

(1) quality, that is, the customer's attitude towards repayment of debts. Understand the customer's reputation and see whether his past payment records have been consistently paid on time, so as to know whether he has good relationship with other suppliers. This is often regarded as the primary factor to evaluate customer credit.

(2) the ability to pay, that is, the customer's ability to pay when the credit expires. The main proof is the various financial statements of the customer. Special attention should be paid to customer's cash flow, profitability and management level.

(3) the state of property, that is, the customer's ability to guarantee the business credit of an enterprise.

(4) environmental conditions, that is, socio political and economic conditions when making credit sales decisions. Although external conditions are beyond the control of customers, enterprises need to consider when providing credit. For example, when the credit is tight, the possibility of deferred payment will increase. When inflation occurs, enterprises will suffer the risk of currency depreciation when they provide credit.

Two. Establish an internal control system for accounts receivable of enterprises.

The accounts receivable shall be the salesperson as the first responsible person, the sales department responsible for the second responsible person, and the unit responsible for the sales work responsible for the third person responsible. The average balance control of accounts receivable is based on the actual average balance of the previous year. Combined with the actual situation of the enterprise, the well is used as one of the performance evaluation indicators for sales, personnel and sales departments. The ratio of the accounts receivable control in the year to the total sales revenue of the year will be broken down to every salesperson. Within the control number, the salesperson has the right to determine the object of credit sale, which is approved by the head of the sales department within the jurisdiction of the sales department, and exceeds the authority of the sales department. At the end of the year, the average balance of accounts receivable should be deducted from the bonus, and the bonus should be increased below the control number. The incentive mechanism and constraint mechanism should be introduced into the management of accounts receivable, so as to completely change the passive situation of salesmen's credit sales and accountants' accounts receivable, and who should really be responsible for credit sales, who is responsible, who will receive accounts, the responsibilities and responsibilities are clear, and the Division of labor should be specific.

The financial department should regularly analyze the recovery status and account age of accounts receivable. The finance department shall compile the sales, credit sale, account receivable, age analysis tables and analysis data of credit sale customers for a certain period. In the analysis, we should make use of the analysis methods such as ratio, comparison, trend and structure to analyze the bad debt risk and its influence on the financial situation of overdue creditor's rights so as to determine the bad debt handling and the current credit sale strategy.

Three, formulate enterprise's account receivable policy

The formulation of debt collection policy refers to the procedures and relevant regulations for enterprises to recover overdue accounts receivable, so that rules can be followed. The methods and steps of collecting accounts generally include letters, telephone calls, interviews, debt restructuring, and resorting to laws. Which accounting method should be chosen depends on the amount of the account, the length of the expiration date, the credit quality of the customer, and the relationship between the company and the customer. Enterprises should pay a price for any defaulted accounts receivable, no matter what kind of collection methods they use. Generally speaking, the higher the cost of collection is, the more accounts will be recovered, and the average account receivable period will be shortened correspondingly, and the loss of bad debts will be smaller. However, the effect of additional account receivable on the further reduction of bad debt losses will be rather weak after the accounts receivable reaches a certain limit. To this end, the formulation of the debt collection policy is to balance the cost of reducing bad debts and the cost of accounts receivable in the increase of account receivable. If the former is less than the sum of the latter, it shows that the collection plan is feasible.

From the perspective of cost saving and maintaining the cooperation between the two sides, self collection is the best choice. Early self collection procedures are generally:

(1) overdue 15 days, issue the first letter of reminder, and call the person in charge to inquire about the situation and understand his attitude.

(2) overdue 30 days, issued second letters of reminder, once again through the phone and immediately stop supply, cancel the credit limit.

(3) overdue 60 days, issue third letters of reminder, if possible, visit the customers.

(4) overdue 90 days, issued fourth letters of consultation, consulted professional institutions, conducted an asset survey of debts.

(5) 180 days overdue, considering litigation or arbitration.

Accounts receivable is an important link in the management of enterprise working capital, and has become a major issue in our modern enterprise management. In the fierce competition in the market economy, enterprises should constantly improve and improve the risk prevention mechanism of accounts receivable, correctly use credit sale mode, reduce risks, occupy the market, expand profits, and promote and enhance the market competitiveness of enterprises.