Onhowtostrengthenthemanagementofaccountsreceivable_10624

1、On how to stre ngthe n the man ageme nt of acco unts receivablePaper Keywords Credit Policy Receivables Man ageme ntAbstract accou nts receivable is the in evitable result of the developme nt of commercial credit in the market economy, commercial credit scale, stre ngthe n the man ageme nt of accou

2、nts receivable become in creas in gly importa nt. Accou nts receivable man ageme nt goal is to not affect sales on the basis of accou nts receivable to mini mize in vestme nt cost. To stre ngthe n the man ageme nt of accou nts receivable, the mai n should be prepared to credit policies, daily man ag

3、eme nt of accou nts receivable, collection work in three areas.One to develop reas on able and effective credit policyThe effect of accou nts receivable credit good or bad, depe nds on the en terprises of the credit policy. Credit policy, refers to weigh the ben efits, costs and risks of the in vest

4、me nt accou nts receivableFunding level of the prin ciples provided for pla nning and control. Generally include: the credit period, credit standards, credit terms with three aspects.(1) credit dur ing the period. Credit period is to allow corporate customers to buy cash on delivery from the time be

5、twee n. The determ in ati on of the credit period, primarily an an alysis of the credit period to cha nge the curre nt in come and cost. To exte nd the credit period, sales will in crease, result ing in ben eficial effects; In the mean time, accou nts receivable, collection costs and bad debt losses

6、 to increase, resulting in adverse effects. Present were larger than the latter, we can extend the credit period, or should not be exte nded. If you shorte n the credit period, the situation is opposite.(B) credit sta ndards. Credit sta ndards is the bus in ess agreed to give the customer the credit

7、 required by mini mum sta ndards. Of credit standards will cause sales, the total accounts receivable, bad debts and costs of cha nges in the risk of loss, bus in ess developme nt of credit sta ndards, we must con sider the differe nt credit sta ndards for ben efits and cost. If the en terprise afte

8、r the relaxati on of credit sta ndards and the in crease in sales of more profitable tha n the result ing in crease in bad debt losses and the opportu nity cost of the receivables, the n the compa ny should relax credit sta ndards; if compa nies reduce the tighte ning of credit sta ndards by the sal

9、es profit is less tha n The result ing decrease in accounts receivable bad debt losses and opportunity costs, then the companies should be tightened credit standards.To develop an appropriate credit sta ndards, we mainly do the following two tasks:1. Decidi ng the level of the best in vestme nt acco

10、u nts receivable.The accounts receivable investment costs including opportunity costs, man ageme nt costs, shortage costs. The opportu nity cost of funds due to reduction in accounts receivable occupation potential revenue; management costs occurred in the daily man ageme nt of accou nts receivable,

11、 such as salary costs, office expenses, revenue costs, bad debt losses and other expe nditure. Shortage costs are reputable compa nies can not offer credit to suffer the pote ntial loss of sales. The best level of in vestme nt accou nts receivable refers to the total in vestme nt cost of the most-ho

12、ur occupati on of the level of accou nts receivable, and its ability to determine the key lies in enterprises more accurately predict the level of in vestme nt accou nts receivable un der a differe nt opportu nity costs, management costs, shortage cost.2. Accord ing to customer credit status, the ac

13、cou nts receivable total amou nt of in vestme nt allocated to the corporate customers to determine their credit limit.(1) to collect customers credit in formati on. Gen erally proceed from the follow ing aspects; customers to access and an alyze finan cialstateme nts over the years, especially rece

14、ntly; advice to the creditrati ng age ncies; proof of Bank clie nts, as well as banks and other finan cial in stituti ons have published a n umber of corporate credit grade; to provide credit to customers and other bus in ess survey; on theirown accumulati on of in formati on. There are many cha nn

15、els as sources of in formati on, compa nies n eed to con sider access to these cost-effective ness of the in formati on itself.(2) to an alyze customer credit status. Gen erally referri ng to foreig n 5C for credit an alysis, judge whether the en terprise customer credit sta ndards. 5C that the qual

16、ity that customers are willi ng tomeet its payme nt obligati ons to the possibility of moral factors in the credit evaluati on is the most importa nt factor. capacity and operat ingcon diti ons. capital, refers to an en terprises finan cial positi on andfinan cial stre ngth that customers may repay

17、debts backgrou nd.collateral that customers refuse to pay the money or un able to pay the money that can be used as collateral assets. This is con troversial I do not know exact details or credit status of customers is particularly importa nt. con diti on s, refers to the gen eral econo mic situati

18、on in the impact of the en terprise, or an area of some special circumsta nces of the impact on customer ability to pay. Factors affect ing customer credit status is complex and changeable, and must be quantitative analysis and qualitative analysis to combine.(C) credit terms. Credit terms refer to

19、en terprises requiri ng customers to pay the credit secti on of the con diti ons, in clud ing the credit limit, discou nts, terms and cash discou nts. Discou nt period is provided for the customer can enjoy a discou nt of cash payme nt time; cash discou nt is to en courage customers to discou nt per

20、iod for early payme nt discou nts. Un der no rmal circumsta nces, provide more favorable credit terms to increase sales, but it can also bring an additional burden, such as accou nts receivable will in crease the opportu nity cost of bad debt losses, cash discounts costs must be carefully weighed.Se

21、cond, the daily man ageme nt of accou nts receivableDay to day man ageme nt, in clud ing accou nts receivable man ageme nt, and the total man ageme nt of in dividual accou nts. In the right clie nts to develop credit line, you can not wait until non-payment or credit is too large whe n the scale of

22、measures of process con trol should be carried out, so that the accounts receivable turnover in the normal state.(A) a single customer management1. Make a record, un dersta nd the timeli ness of customer payme nts. Basic record keep ing, in clud ing bus in ess-to-customers credit terms, thedate of t

23、he establishme nt of credit relati on ships, the customer payme nt time. The amou nt curre ntly owed, and customer credit rat ing cha nge.2. Check whether the customers break credit limit. En terprise customers a credit for each bus in ess should check the records of more tha n the credit limit and

24、pay attention to check whether the total amount ofdebt owed by customers exceeded your credit limit.3. Grasp the customer credit period has expired the debt, and closely mon itor the clie nt has matured debts of the dyn amic cha nges in order to take timely measures to connect with customers, remind

25、 them of their payment as soon as possible.(B) the total amou nt of man ageme ntBusy credit bus in ess, it is impossible for all customers to be man aged separately, it should focus on the total amou nt of con trol.1. An alysis of accou nts receivable tur no ver and average collecti on period to see

26、 if the liquidity is in the no rmal level. Enterprises can be the targets were actually higher than the past, and planning ratio, compared with the same industry, so as to accounts receivable man ageme nt appraisal successes and failures and to rectify the credit terms. Reposted elsewhere in the pap

27、er for free dow nl oad http:/2. Withhold state in specti on. Observati on of the perce ntage of non-payme nt of accou nts receivable has bee n that the bad debt loss rate, in order to determine whether the corporate credit policy should becha nged. If the actual bad debt loss rate sig nifica ntly lo

28、wer tha n the expected loss rate of bad debt, compa nies must look at the credit sta ndards are too strict; On the con trary, they should look at whether it is too loose, thus amending the credit standards.3. Prepare aging an alysis table. Check the actual occupa ncy of the accou nts receivable days

29、, bus in ess-to-recovery supervisi on of accou nts receivable agi ng an alysis through the preparati on of the table.Accord in gly, to un dersta nd: (a) the n umber of arrears is still the credit period, although these arrears is no rmal, but the ability to recover after the expiry, but also that ti

30、me in order to ascertain, there is still need for timely mon itori ng; (2) the n umber of arrears over the credit period, the amou nt exceeds the len gth of the respective perce ntages, the estimated n umber of models will be due in arrears for too long may be bad. If most of the receivables exceede

31、d the deadli ne, compa nies should check theircredit policy.Third, man ageme nt of accou nts receivable after(A) to determ ine a reas on able collecti on procedures. Accou nts receivable collecti on procedures gen erally are: no tificati on letters, telepho ne, telegraph, facsimile collecti on; send

32、 people to come dun; legal acti on, in tak ing legal acti on, should con sider the cost-effective. Caseof the follow ing circumsta nces n eed not be prosecuted: (1) The court costs of litigati on exceed the amou nt of the debt claim, (2) Customer cash collateral may be writte n off the debt, (3) cus

33、tomers debt is no t, it has a wide range of social relati ons, prosecuti on may be the en terprise moveme nt has bee n compromised, or eve n lead to in jury, (4) Eve n if successful, recover the receivable may be extremely limited.(B) to determine a reasonable debt collection methods. Customer accou

34、nts receivable owed the reason can be summarized as two categories: facilities due to insolvency and deliberate.1. For debt collecti on in ability to compe nsate the village to con duct a specific an alysis:(1) If the customer is in deed temporary difficulties, through the efforts can make a comebac

35、k, an enterprise should help customers tide over their difficulties in order to recover more receivables. The gen eralpractice is to con duct accou nts receivable debt restructur ing: toaccept fair market value of outsta nding household debt to less tha n the amou nt of non-mon etary assets cover; alterati on of debts in the form oflon g-term receivables to determ ine a reas on