1、On Risk Control Accounts Receivable Abstract:Accounts receivable credit enterprise by way of sale of goods or services but to the customers received, accounts receivable management directly affect the capital flow and economic operation of the article pointed out that enterprises should combine thei
2、r actual situation, the establishment of receivables Accounts of the risk prevention mechanism, from the source control and take preventive measures not only the accounts receivable of enterprises face the risk of recovery, but also the existence of operating risks to the enterprise, from the status
3、 of receivables management business to start Analyze accounts receivable management business problems. Accounts receivable is the product of credit, credit on the one hand can improve the market competitiveness of enterprises, to expand sales, but on the other hand delayed the cash recovery time and
4、 increases the cost of collection of trade receivables, receivables from the paper The causes and management of money in terms of how to prevent the risk of accounts receivable. Key words:accounts receivable,control Introduction Accounts receivable is a result of external business credit products,ma
5、terials, supplies, labor, etc. to purchase or receive services units to receive the funds. Enterprises can sell two basic forms, namely, credit method is way off. Cash sales approach is the most expected a sales settlement. However, in the fierce market economy, totally dependent on marketing approa
6、ch is often unrealistic. Under the credit method, the enterprise in sales of products, can be provided to the buyer within a certain period of time free use of money the business of credit funds in an amount equal to the price of goods, which for the purchaser in terms of great attractive. For the e
7、nterprise is an important promotional tool, the enterprise product sales are sluggish, the market decline, the case of weak competition, or in enterprise sales of new products, new markets, in order to meet the needs of market competition and adopting various effective the credit method, it is wise
8、for businesses. In the current market economic conditions, increased competition, with the continuous development of commercial credit, business credit sales of products means more favor. However, a large number of accounts receivable resulting in sales revenue growth can only book profits to the en
9、terprise, can not bring business to maintain and expand the scale of production necessary for cash flow, and with the continued increase in the amount of accounts receivable, growing an average of aging, accounts receivable aging structure tends to deteriorate, may be more and more bad debt losses,
10、to the huge enterprise production and management of potential risks. Therefore, how to effectively enhance the control and management of accounts receivable is a enterprises financial imperative. First, the business performance of accounts receivable risk Accounts receivable is an enterprise in the
11、normal course of business, from selling goods, products or services or receive services to purchase units of a unit charge or debit the accounts of the transport fees. It is the business generated by the short-term credit product claims to offer the enterprise a commercial credit. Accounts receivabl
12、e in an expanding market, increase sales revenue while also forming a receivables risk, mainly reflected in: 1, accounts receivable possession of large amounts of liquidity, adding to the difficulties of shortage of working capital business. Enterprise credit products, issue stock, but can not recov
13、er the money, and enterprise customers on overdue payments can not take appropriate measures, resulting in a large number of corporate working capital was occupied by the long run will affect the flow of liquidity to enable enterprises to monetary shortage of funds, which affect the normal cost and
14、normal production operations. 2, exaggerated accounts receivable business results, so that the existence of hidden losses or loss of business. At present, revenue is recognized when the company followed the principle of accrual accounting, the accounting treatment for the occurrence of credit, debit
15、 accounts receivable account, credited business income subject to credit all revenue credited to current income, , the increase in corporate profits and the current period can not be achieved, said the cash income. According to the precautionary principle, the actual situation of enterprises accordi
16、ng to their own accounts receivable Provision for bad debts, but in practice, in order to facilitate tax, the tax laws, administrative regulations expressly provides that the proportion of the general provision of 0.3% to 0.5%. If there is a lot of business accounts receivable, there is increased li
17、kelihood of bad debts, bad debts that actual extraction of the bad debts far exceeded. This is equal to exaggerate the companys operating results, and the losses that may occur can not be fully estimated. 3, accounts receivable increased by the loss of corporate cash flow. From handling the accounts
18、 of credit can be seen that although the company had a credit more revenue, increase profits, but did not make the cash inflow, but the company had to advance funds to pay various taxes and payment of costs and accelerate the enterprises cash outflows. 4, accounts receivable increased the opportunit
19、y cost of corporate capital losses. First of all, occupied by accounts receivable financing, which calls for accelerated turnover in the business, be rewarded, but because there are a lot of accounts receivable, in particular, the proportion of overdue accounts receivable on the rise (at present, Ch
20、inas late accounts receivable accounts receivable as high as 60%, while the Western countries, less than 10%), resulting in accounts receivable on the occupied capital lost its time value. Second, because the accounts receivable arising in the collection process, forcing the enterprises have to inve
21、st a lot of manpower, material and financial resources, and increased collection costs； the same time, because a lot of money by settling, the borrower time to be extended, increased interest expense. A variety of cost increase, making funds lost profit opportunities and increase the opportunity cos
22、t of capital. Third, how to control the risk of accounts receivable 1, credit risk prevention policy With the further development of Chinas market economy and increasing business competition, commercial credit receivables of the objective to be a competitive necessity of issuing commercial credit co
23、mpanies that do not attract customers to lose the competitiveness of the credit offers； course, the payment of business inevitably bring credit offers credit risk and credit policies on the manage receivables plays an important role. Credit policies include the following: (1) Credit standards. Credi
24、t standards are the company to provide commercial credit made the minimum requirements for the development of credit standards is the key to consider the customer to delay payment or refuse to pay money to bring the possibility of loss to the company size. To this end, companies need credit to custo
25、mers for regular inspection and assessment of the quality of analysis on the credit quality of the testing and evaluation standards, there are three commonly used methods. First, 5C system evaluation. The system is to assess the important factor in customer credit quality, the following five aspects
26、. Quality: Quality is the customers and reputation, that is, the possibility of obligation, this factor is critical, it is a moral credit of the subjective factor, which is required to have the management of corporate credit experience, the right to judge and keen insight. capacity: Capacity is the
27、customers ability to pay when the credit expires, it is according to customer financial information, especially under the regular income and expenditure data be analyzed to determine their ability to pay the purchase price. Capital: capital refers to the customers financial strength and financial st
28、atus, indicating that the background of the customer may pay the debt, usually reflect the financial position of the ratio of customers include: debt ratio, current ratio, earnings coverage ratio, fixed charges coverage ratio. collateral: collateral or credit status on the bottom line I do not know
29、the customer and requires a disputed credit guarantee of a variety of assets. economic environment: mainly refers to the economic environment can affect the ability of customers to fulfill financial responsibility of economic development trends, it is beyond the control of the customer. Corporate cr
30、edit managers in considering this factor, the analysis should focus on regional economic conditions and business products related to the development of industry-specific. Second, the credit analysis. According to customers credit information, credit screening of several major factors, the number of
31、statistical methods used for processing classified and quantified to calculate the weights, assessment of credit quality, enterprise credit management section based on credit scores to determine the weighted credit rating . Third, credit risk model method. According to the customers financial busine
32、ss risk and receivables management companys own risk to determine credit risk, the use of the principle of mathematical statistics to establish a credit risk model, which ARC (credit risk) = PR risk customers can not pay the creditors MR (accounts receivable risk management), MR (accounts receivable risk management) is the companys own accounts receivable management system, measures methods, control and supervision, the quality of personnel and other internal factors, can affect the risk of a few accounts receivable management major factors in assessing the scores of each factor
