Accounts Receivable Risk Management
【Abstract】 accounts receivable management, financial risk management is an important element. If the poor management of accounts receivable, companies will be a long-term deep "triangular debts" and being troubled,
to avoid this problem, we must manage and control the source.
Key words accounts receivable credit risk management policy
"Water can carry a boat, can also overturn it," accounts receivable can allow substantial increase in business sales, market share will
expand, but also allow enterprises to sink into their cash flow, operations paralyzed pain. So how to play a positive role in accounts receivable and effective risk-averse? An enterprise should accounts
receivable in advance, during and after the entire process control.
First, source control, compression occurred in accounts receivable amount and frequency of
When a seller's market into a buyer's market, the market competition, forcing enterprises to adopt various means to expand sales or contract work. Some companies promote their products or contract in order to achieve the aim of the project, are often not part of the collection or receipt of funds, based on impression, friendship or business experience,
unsolicited goods or Loaning convention started, until authorities check the stock commodity or settlement, the accounts receivable receivable has occurred. The other companies operating in the event of misfortune, distressed or deliberate default, or the parties changed, the recovery of
accounts receivable will increase the difficulty of the enterprise financial risks rise. Therefore, it is necessary to reduce the source of
the occurrence of such funds, taking up.
This requires enterprises to establish a comprehensive assessment of customer credit information system, strengthen the exchanges customers, long-term internal evaluation of customer contacts through various channels to understand and determine the customer's credit rating and then
decide whether to offer commercial credit and credit limit. Conducting internal credit assessment, usually in the expected bad debt loss rate as a credit Criterion. Poor condition of the credit business, credit standards should be strict, so as to effectively prevent the credit due to
excessive lead to exceed the customer's actual payment capacities, make businesses suffer.
Second, dynamic tracking, analysis, and strengthen supervision and management of daily
When the enterprise took place accounts receivable, it should be held regularly on the accounts receivable tracking and analysis of the dynamic and timely to make scientific decisions. Release accounts for the company, in order to keep abreast of the company at a certain time period
the amount of payment of accounts, the credit period, the number of customers at home, more than the credit period, the number of customers at home.
To ensure the effective recovery of corporate receivables, it must create a dynamic customer credit assessment mechanisms, and accounts receivable tracking management system. Should be on assessment, quarterly review, annual review, do a good job early warning of risk management accounts, tap the investor letter of good, high-value customers, giving
preferential credit policies; remove bad credit, low-value customers, or
give more strict Receivable Management. Only in such a dynamic client credit review and accounts receivable tracking to protect the enterprise marketing risk to a minimum.
Third, time-ching, strict collection
After the occurrence of corporate receivables, the business sector should take various measures to strive for recovery of payments on time and avoid bad debts incurred in arrears for too long. To this end
enterprise should develop a reasonable clear right, collection methods.
1, strengthening the status of accounts receivable daily dynamic transmission and submitted to the
After the accounts receivable, corporate finance department should
be given time intervals, to instruments, in tabular form to the relevant departments, the responsibility of handling personnel and business leaders to pass accounts receivable dynamic information, preferably once a month (or even more short), supervision, and prompt the above-mentioned
collection personnel and departments. On overdue accounts receivable outstanding notification time should be even shorter.
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2, concern between the customer's operations, to enhance the daily exercise card
Enterprises should always pay attention to business units, operations, financial position and personnel changes, be aware of in order to prevent the other units due to the sudden turn of events, business
missteps and related personnel changes may result from the risk of uncollectible receivables . The financial sector should work together with business units on the other side of receivables from time to time send Xunzheng Han to verify the authenticity of accounts receivable, integrity, and to ensure that the timeliness of the proceedings and prevent the occurrence of cardiopulmonary bypass receivables blocking illegal behavior and the failure to prevent the debt collection lawsuits.
3, establish a regular and customer reconciliation system, dynamic tracking, decisive decision-making
Enterprises should establish a regular and customer reconciliation
system, finance department, in conjunction with the relevant
administrative departments of the company held by the track and analyze accounts receivable. For the relatively large number of enterprise customers, its management should print out a daily accounting of all accounts close to expiration on the accounts receivable records, and at
least a week overdue accounts receivable record and analysis of time, and the use of information systems is set to be collection of early warning procedures, timely access to prompt signals and submit opinions on handling. Under normal circumstances, shall require clients to pay off the arrears before, after, before allowing owed by a new. If you find that overdue debt or increase the amount of arrears should be drastic measures to inform the authorities stopped supplying.
4, the establishment of responsibility centers, the collection included in performance appraisal results
Officer to establish a business, financial inspectors, supplemented by the collection of arrears responsibility center, Chen Qian and control
will revert to the bad debt into long-term performance assessment, the
increased sales of clean-up and collection accounts Chen enthusiasm.
5, for different customer relationships, and adopt a flexible collection policy
Long-term receivables for the recent clean-up Chen accounts intact
areas, should be limited to delivery or refusal to deliver, and increase collection efforts: the solvent does not meet their debt obligations, man-
made Repudiation occurs, should be valid in the proceedings in the use of
legal means to resolve in order to avoid the loss of recourse, resulting in bad debt losses; right sector is indeed unable to pay debts, the enterprise can understand their bonded goods prices, quality and sales circumstances, to take the material arrived in paragraph can also be require customers to open out the equivalent of commercial acceptance bills of exchange, in order to offset the accounts receivable, an early realization; to be able to repay loans within an agreed period the
customer, you can give certain discounts to encourage customers to repay loans early.
 Xiao-Shan Tan: Managing Accounts Receivable [J]. SUCCESSFUL MARKETING, 2003 (1)
 ZHANG Yong-wang: Talking about the control of accounts receivable channels [J]. Accounting magazine, 2003 (4)
 Samuel flight: An Analysis of accounts receivable factoring business [J]. Accounting communications, 2003 (3) reposted elsewhere in the paper for free download http://