Accounts receivable are the product of the credit sales of goods and services during the production and operation activities of each enterprise. They are the uncollected purchased units and services formed by the company's external sales of goods and provision of services on credit. The funds of the enterprise occupied by the labor service unit are a form of commercial credit. In order to expand product sales and increase product sales revenue, companies more or less sell certain goods on credit. The credit sales of goods also form accounts receivable and increase the risks of business operations. Therefore, enterprises must take practical measures, formulate reasonable and effective management methods, and do a good job in advance prevention, supervision and recovery of accounts receivable, so as to ensure the reasonable occupation level of accounts receivable and the safety of collection, as much as possible. Reduce bad debt losses and reduce business operating risks. How companies should control accounts receivable to avoid bad debts and unnecessary losses. Here are some of my opinions:

1. Investigate and evaluate the customer's credit status to determine reasonable Accounts Receivable Policy.

Credit investigation of customers is to investigate and evaluate the credit status of customers such as their quality, payment ability and financial status. To determine this customer, whether we can sell products to him on credit, the size of the credit sales, etc. Take our company as an example. In order to reduce business risks, the company generally does not accept credit, but sometimes it is unavoidable to have some temporary debts from some customers. For customers who owe money, company personnel must first understand the customer. His trustworthiness, and then his ability to pay, should be determined before he can be owed credit to him and set a repayment date after confirming that he meets the corresponding conditions. Develop different credit policies according to different customers. Only in this way can the company reduce the losses caused by bad debts.

2. Establish an internal control system for accounts receivable business with clear division of labor, mutual checks, and clear responsibilities and authorities.

1. Strictly review and approve authority, and determine the authority scope of relevant persons in charge. Credit sales can only be made on credit after being strictly reviewed and approved by the relevant leaders. Without the signature of the relevant leaders, the debts incurred shall be borne by the relevant responsible persons. This problem currently exists in our company. Only by clarifying the authority and responsibilities and formulating Only by taking punitive measures can we effectively control the occurrence of arrears. On the basis of strict approval of credit sales, the management of credit sales balances will be strengthened to facilitate timely understanding, control and control of accounts receivable. Due to the lax approval monitoring and the loopholes in the sales policy, our company has recently added some arrears. In order to collect the arrears in a timely manner, the Finance Department has taken measures to provide the Sales Department with detailed customer information in the middle and late days of every month. A detailed list of arrears, and tracking and reminders at any time.

2. Clearly divide the responsibilities of the enterprise's sales department and financial department in accounts receivable management. It is clearly stipulated that the sales department is directly responsible for the safe and timely collection of accounts receivable. The decision-makers and main personnel responsible for the formation of accounts receivable are the persons responsible for collecting creditor's rights. The work of collecting accounts receivable must be completely changed. Mistakes in Finance Department Responsibilities. The financial department should promptly provide accounts receivable aging analysis tables so that decision-makers and relevant departments can accurately, timely and comprehensively understand the current status of accounts receivable.

3. Improve the internal incentive and restraint mechanism, change the erroneous practice of only linking the salary and remuneration of sales staff with sales indicators, and establish an internal assessment responsibility system that not only directly links wages, remuneration and sales indicators, but also Accounts receivable should be included in the assessment system, and the balance of accounts receivable should be linked to the work performance of relevant personnel. They must bear a certain proportion of economic responsibility for the losses on accounts receivable and bad debts. In our company, in order to complete the task, the salesman did not collect the payment in time after delivering the goods, occupying the company's funds and completing his own task. The company will formulate a sales policy starting from next year: if the salesman fails to pay for the goods in the assessment month, If the delivered goods cannot be recovered at the end of the month, the sales volume of the payment will not be included in the completed tasks. The salesperson is responsible for recovering the payment owed by the area in which the salesperson is responsible, and the interest on the payment will be calculated based on the period of arrears and shall be borne by the salesperson. Link accounts receivable to their economic interests and require them to supervise every business they handle afterwards to ensure the recovery of funds.

Enterprises must strengthen the management of accounts receivable and prevent financial risks. Due to lax internal control, chaotic management, and lax and unscientific internal management assessment systems, the business departments of the enterprise, driven by economic interests, only focus on the completion of sales targets and ignore the recovery of sales payments.

As a result, a large amount of accounts receivable has settled, placing a heavy burden on business operations. Reasons for the high level of accounts receivable: 1. Fierce market competition 2. Unclear responsibilities for internal debt clearance work. Due to unclear responsibilities and insufficient rewards and punishments, all departments have an "irrelevant" attitude towards the "clearance of debts" work. Self, hang high" attitude. 3. The awareness of using legal means to resolve debt disputes is not strong. Therefore, in order to prevent accounts receivable risks, we should: (1) Investigate and evaluate the creditworthiness of customers (2) Improve credit sales procedures: to ensure the authenticity and legality of the sales collection cycle process, and effectively prevent and detect errors and fraud , private fraud, enterprises must strengthen the internal management of sales and collection cycles, that is, improve the management of credit sales procedures. (3) Establish a credit account responsibility system: implement the management method of "whoever approves is responsible" for accounts receivable. (4) Establish appropriate incentive and restraint mechanisms.