Accounts Receivable Accelerated The Flow Of Cash Flow Of Enterprises.

Accounts receivable is a sum of money that the enterprise has already given to the customer and the money is still in the hands of the customer. The reason is credit sale. In credit sale business, logistics and capital flow of enterprises are out of sync.

After the issuing of the goods and the receipt of the receipts, the goods can not be recovered at the same time. This kind of sales revenue without the cash withdrawal will inevitably form accounting profits without cash inflow, the transfer of sales tax and the prepayment of income tax within the year. If it involves the annual dividends of shareholders, it will also lead enterprises to use the working capital to advance shareholder dividends.

These enterprises are really jealous and jealous of enterprises with huge amounts of "accounts receivable". Money is already available when goods are not issued. Accounts receivable For these enterprises, on the one hand, they did not withdraw their money; on the other hand, they accelerated the business. Cash outflow 。 Specifically:

(1) Enterprise turnover tax Expenditure. Accounts receivable generated from sales revenue, but did not actually receive cash, turnover tax is calculated on the basis of operating income. Enterprises must pay cash in time.

(2) income tax expenditure. The business profits will be deducted after the sales revenue is deducted from various expenditures. According to the provisions of the tax law, the enterprise income tax shall be paid for operating profits, whether or not the payment is received. To a certain extent, it has aggravated the financial pressure of enterprises.

(3) dividend distribution in cash will result in financial strain.

In addition, the management cost of accounts receivable and intermediary costs in the process of clearing will lead to the cash outflow of enterprises.

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The most important financial management problem in modern enterprise development is how to manage internal control, especially the management of enterprise financial risk. The risk of enterprise financial management is mainly manifested in many aspects, such as:

Currency risk - the fluctuation of currency exchange rate directly affects the performance of enterprises.

Interest rate risk - interest rate fluctuations may increase borrowing costs and reduce output of investment projects.

Liquidity, if assets are poor in liquidity, may cause enterprises to fall into financial crisis.

Cash turnover -- the speed of cash withdrawal directly affects the efficiency of cash utilization by enterprises.

Reinvestment - capital may not return to the same return after the end of the short term high return investment project.

Credit risk - customers' long-term arrears of payment, resulting in a large number of corporate cash squeeze.

Tax risk - the lack of a manager who knows the tax law better.