Analysis of accounts receivable risks and preventive measures

1、 analysis of accounts receivable risks and preventive measures abstract: the accounts receivable of enterprises not only face the risk of recovery, but also to the enterprise business risk. this review focuses on the risk of accounts receivable and prevention to conduct a careful inquiry. keywords:

2、accounts receivable; risk; preventive measures accounts receivable of enterprises not only face the risk of recovery, but also to the enterprise business risk. therefore, enterprises should not only fully expanded accounts receivable sales and increase profits of the special features, and to minimiz

3、e the risks. first, the status of our analysis of accounts receivable accounts receivable is the result of external sales of products, materials, supply services and other reasons, should purchase units or receiving of services units and other units of money collected, including accounts receivable

4、sales payment, other receivables, notes receivable, etc. ; the same time that the sales process, also known as credit. narrow receivables mainly refers to the marketing loan receivable; general accounts receivable, including receivables sold loans, installment accounts receivable, prepayments, accou

5、nts receivable bills and other receivables. at present, china accounts receivable management companies in the following major problems: first, accounts receivable in the proportion of high liquidity, high proportion of overdue accounts receivable; second, the total accounts receivable volume growth

6、momentum year by year. according to statistics, chinas enterprises accounted for the liquidity of accounts receivable more than 50% share, far higher than the developed countries average about 20% level. in the developed market economies, corporate overdue total accounts receivable accounts receivab

7、le are generally not more than 10% of the total, while in china the ratio as high as 60%. according to the ministry of commerce director of information management research institute of the data provided by mr. han jiaping, china from 1991 to 1995 accounts receivable during the formation of more than

8、 80 billion yuan, the current form of more than 3 years overdue accounts receivable up to 40%. in addition, due to strict control, mismanagement, rapid expansion of trade receivables, has seriously affected the business management and development. statistics show that, as of the end of november 2003

9、, just above the national scale (more than 500 million sales revenue) bad debts among industrial enterprises up to 1.8624 trillion yuan in arrears, an increase of more than 16.9% in 2002. this has seriously affected liquidity of the assets of the enterprise, the enterprise is a serious shortage of f

10、unds, the reproduction of extremely conducive to business, but also seriously hampered the development and growth of enterprises. receivables generated mainly due to internal operation and management mechanism and the internal credit risk unreasonable result. second, the impact of accounts receivabl

11、e risk factors the risk of accounts receivable is due to the instability of market factors and claims, debts, when the uncertainty in the settlement, resulting in accounts receivable credit business and recovery in the amount of the recovery time is uncertain. jane speaking, risk is accounts receiva

12、ble accounts receivable held by an enterprise to recover the amount in the future and the recovery time of uncertainty. receivables recovery of the amount of uncertainty also called on the risk of bad debts, accounts receivable refers to the amount of recovery can not occur by the formation of the l

13、osses caused by bad debts. receivables uncertainty on the recovery time is also known as default risk refers to the customer exceeds the credit limit payments to enable enterprises to sustain loss. arrears accumulated to a certain degree of risk will translate into bad debts. receivables expected ri

14、sk of loss exists, the main reason is due to due to the following factors: (a) imperfect credit management system. at present the establishment of our credit management system, has just started, the credit management system is almost empty, the credit management in the unit are limited to banking, s

15、ecurities and other financial institutions, enterprises are rarely carried out. and society relatively weak sense of credit, many enterprises do not attach importance to their credit, malicious default accounts, creating a vicious cycle, causing the credit crisis. credit is a commercial credit, adve

16、rse credit environment in the case of receivables arising from the credit protection due to the lack of recovery of receivables arising from risk. (b) lack of risk awareness of their own. as people in society do not attach importance to the phenomenon of lack of credit, and some luck, the sale is no

17、t on the creditworthiness of our customers for in-depth investigation to free credit, although this will make sales climbed, but there are a large number of customers in arrears to be able to take up the liquidity problems back in time. (c) accounts receivable management is not standardized. many en

18、terprises have not set a full-body or full-time staff of accounts receivable risk management. unreasonable corporate credit policies, daily control of non-standard, the recovery of debts may not work force and others have suffered their own risk and may result in losses. as the trading of goods and

19、capital flows during the timing differences, as well as passing notes, records, etc., have the possibility of errors occurring, so the credit and debt outstanding economic exchanges on both sides matter should be reconciled regularly to clear the rights and obligations of both parties. but many comp

20、anies have not timely, from time to time reconciliation, not according to the different collection policies to adopt a different situation, leading to capital outflows, not the normal flow. (d) lack of effective incentive measures. in some enterprises in order to mobilize the enthusiasm of sales, wa

21、ges are often only linked with the sales tasks, while ignoring the possibility of bad debts. therefore, sales staff for personal benefit, only care about the sales task completion, to take credit, rebates and other means of sales, leading to a substantial increase in accounts receivable. and this pa

22、rt of the accounts receivable business has not taken effective measures to require the relevant departments and personnel solely responsible for distribution to recover. receivables not responsible for the recovery of money to the people, lack the necessary internal control system, which causes a la

23、rge number of accounts receivable deposited to enable enterprises to carry a heavy burden. reposted elsewhere in the paper for free download http:/www. com third, the accounts receivable risk prevention measures (a) to strengthen the basic work of accounts receivable. one is to establish customer cr

24、edit files. enterprises should collect their own customer credit information and investigation and analysis of their credit status. for old customers, to establish a sound credit files, to develop a complete set of credit history. for new customers, credit management should include: to conduct a cre

25、dit investigation, credit assessment and the development of rational credit policy; second, enterprises should be based on different credit situation, take a different collection policies. reasonable credit policy shall credit standards, credit terms, collection policies combine all three, and consi

26、dering the change of the three sales, accounts receivable, various costs. (b) the establishment of a comprehensive credit system. credit sales experience should not be judged alone, but must have approval by the relevant qualified personnel for approval before implementation. enterprises according t

27、o their characteristics and management, establishing credit approval system. given different amounts at different levels of approval authority staff, handling personnel only in the amount of their approval authority for approval, more than the limit, you must agree to consult on a lead. meanwhile, a

28、ccounts receivable collection should implement the responsibility system. the handling personnel shall be responsible for handling business, and linked with its economic interests. (c) regulate the daily management of accounts receivable system and improving customer credit management system. good a

29、ccounts receivable control measures, must be engaged before the matter, after three good preventive work. first, the credit before the credit must be clear the contents of the contract; second, credit approval by the relevant departments and personnel, the response given commodity, credit procedures

30、 for supervision and management of the process, the delivery information, payment tracking, reconciliation and the formation of a regular system, so that management can not be divorced from passing the buck to avoid confusion in the accounts, unclear responsibilities. at the same time detailed recor

31、ds of each payment to the recovery in the regular analysis of the aging; again, the secondary accounts receivable management, many companies only in the balance sheet of the supplementary information trade accounts receivable by a simple classification of the amount, usually no adjuvant management o

32、f accounts receivable, it should be attached great importance to measure the risk of accounts receivable, credit evaluation, accounts based on credit assessment to predict the recovery of the situation according to the recall to take appropriate preventive measures. (d) strengthen the prevention and

33、 control of the management of post. after the sale of a business is truly profitable customers from the enterprise to recover funds. therefore, collection of receivables owed to discuss a variety of ways clear, and accounts receivable collection responsibility to the people. receivables finance depa

34、rtment should be responsible for planning, control and evaluation. sales staff is directly responsible for accounts receivable, the company sales staff assessment of the final target point is now closed. payment to the period of the previous week , sales personnel should be notified by telephone or

35、visit the person in charge arrears, to predict the date of the end section, and in the results section on time to go. (e) the establishment of bad debt reserve system. no matter how enterprises to adopt a strict credit policy, but as long as there is a commercial credit behavior, bad debt losses are

36、 inevitable. enterprises not only increased the cost of bad debt losses, and reduce the liquid assets that can be used. in order to follow the principle of prudence and the principle of comparability, the enterprise accounting system should be based on the provisions of bad debt losses that may occu

37、r to estimate the pre-extracted to make up for bad debt losses to establish reserves. in the modern commodity economy, commodity trading mostly between enterprises based on commercial credit based on the way to achieve credit. with the continuous development of commercial credit, business credit business between the accounts receivable arising from the growing probl