Inventory Management Recommendations For Accounts Receivable

Accounts receivable refers to the amount of money that should be charged to customers but not yet received by the enterprises in the process of selling goods and services on account of credit, including all the funds and extra charges that should be charged to customers, such as incidental expenses, insurance premiums, and value added tax payable to purchasing units. Accounts receivable is a very common and very important asset of an enterprise. Its safety and quality will affect the resources, profit and loss, cash flow and even the development of enterprises.

At present, there are still some problems in the management of accounts receivable in the modern enterprise management system.

1, accounts receivable management system is not sound enough. In modern enterprises, the management system of accounts receivable is not perfect. If there is no sound management system as the foundation, the relevant work of accounts receivable will be restrained, and financial risks will be increased. In some enterprises, there is no systematic system for contract management, sales management, and accounts receivable daily management. There is no regulation on the operation procedures of specific operation procedures and the rights and responsibilities of operators. The system is not perfect enough, on the one hand, it increases the difficulty of accounts receivable management. On the other hand, there is no guarantee for the safety recovery of accounts receivable. At the same time, because of the lack of system, the internal audit can not be trusted, and it can not play its positive role in ensuring the smooth development of all work and protecting the company's property safety.

2, the division of responsibilities is not clear enough. In some enterprises, there is no clear division of labor in the management of accounts receivable. The examination and approval of credit sale customers and the checking and approving duties of credit sales quota are in relevant departments, but after the examination and approval, the implementation and quota usage of the actual business are followed and supervised, and no relevant departments are responsible for it. If the operation is normal, there is no risk. However, if the customer pays difficulties or overdue or bad debts, it will cause serious losses to the enterprise without pre tracking and supervision. When problems arise, due to the unclear division of division of labor, no relevant departments undertake, the most favorable recourse will be delayed, and the risk points are not controlled in time, resulting in the major hidden dangers in the management of accounts receivable.

3. Bad debt management Need to be strengthened. Bad debt management is an important part of accounts receivable management. For some enterprises, because of inadequate management system and lack of management means, there are often large bad debts. However, there is a lack of unified methods and standards in the recognition and treatment of bad debts. The specific way of operation is to wait for the audit at the middle of the year and the end of the year, and entrust accounting firms to confirm and make corresponding accounting adjustments. Because there is a certain lack of cognition in the recognition and handling procedures of bad debts, it also brings blindness and randomness to accounts receivable management.

4, accounts receivable is not enough. The use of accounts receivable will bring substantial value to enterprises if they are used. If we do not make use of the management, there will be some uncertainty in the safe and full recovery, which will bring risks to the enterprises. In some enterprises, there is not enough motivation in the exploration of new business models. So the management of accounts receivable at present is only based on risk prevention, but it does not use external force to eliminate risks, and has not explored its utilization space. This is actually a kind of resource idle and waste, especially for a shortage of funds, the use of new asset management tools, the rational use of accounts receivable, reduce the risk of bad debts reasonably, can bring unexpected gains to the development of enterprises. At the same time, other areas and ways should be developed to manage accounts receivable.

　　 Management recommendations for enterprise accounts receivable:

Strengthening the management of accounts receivable is the most important link in the management system of accounts receivable. Only when the accounts receivable expire before taking the necessary measures to prevent the occurrence of bad debts can we turn the passive into the initiative. If we wait until accounts receivable have been overdue, it is very difficult to avoid losses.

First, establish internal control. ERP system sales contracts, receipts, bills of lading, invoicing and other processes must be clear and mutually exclusive. For credit sale business, the position of credit sale quota and the actual business operation post must be separated, and the pricing post and the actual business operation post must be separated.

Second, it should be established regularly. Visiting customers System. Regular visits to customers can timely understand the needs of customers and customers' opinions on products and services provided by enterprises, and deepen the understanding of the contract terms between buyers and sellers, so as to prevent contract execution problems caused by incorrect understanding. At the same time, we should pay close attention to customer dynamics and do well in tracking and monitoring accounts receivable. Pay close attention to customer dynamics and identify major changes or upcoming omens of customer capital, business or property rights as early as possible. Once the customer has difficulty in operation or insufficient payment, action should be taken immediately to settle the arrears. In daily management, we should track and analyze the customers' future operation and solvency, and timely understand their cash holdings and turnover. Through various kinds of information channels, we can dynamically track customers and keep abreast of customers' and especially large credit account customers' operation and property rights, so as to prevent customers from falling into bankruptcy or bankruptcy due to economic disputes or other emergencies.

Third, we should establish Accounts receivable Early warning system, regular analysis of accounts receivable aging. Generally speaking, accounts receivable account for the longest age, and the greater the difficulty of collection, the less likely to be pushed back. Therefore, it is particularly important to do well in aging analysis of accounts receivable. If the analysis results show that a large proportion of the credit sales customers of the enterprise are paid outside the credit period, and the overdue time is longer, they must act immediately, adjust the enterprise credit policy, rearrange credit account customers, strive to improve the collection efficiency, and reduce the risk of bad debts.

Finally, continue to improve the debt collection policy. When receivables are defaulted or refused to pay, the first analysis is whether there are any problems in the existing credit standards and credit approval system, and whether there is any unreasonable place. Then we will re investigate the credit level of the defaulted customers and re establish their credit sales quota. For customers with malicious default and low integrity, we should tighten up the collection of the arrears in advance, settle the debts as soon as possible, and then remove them from the customers who sell on credit, and no longer carry out credit sale business to them. If it is invalid, if necessary, it may resort to legal means to claim the court's claim according to the contract, delivery list and acceptance documents.