The first is to do a good job in the prior control of accounts receivable, which is to assess the credit qualification of the customer, and to make a set of reasonable credit policy to prevent the bad debt in advance. Credit policy includes three aspects: credit standards, credit conditions, and collection policy.
I. Credit standard is the basis for enterprises to evaluate the grade of customers and decide whether to give or refuse credit to customers. Enterprises should consider three basic factors when developing or selecting credit standards:
One is the situation of competitors in the same industry. In the market competition. Enterprises should first consider how to be and maintain an advantageous position in the competition to maintain and continuously expand the market share, if the rivals are very strong, the enterprise must take a lower credit standards relative to competitors, and vice versa, the credit standards can be correspondingly more stringent.
The second is the enterprise's ability to bear the risk of default. When the enterprise has a strong risk-resistant ability, it can take a lower credit standard to improve competitiveness, to win customers and expand sales, on the contrary, it should choose a higher credit standard to reduce the degree of default risk.
The third is the degree of customer creditworthiness. Enterprises must make a judgment on the customer's credit rating and decide whether or not to give customers preferential treatment, the level of customer creditworthiness depends on five aspects, namely, credit quality, solvency, capital and collateral, referred to as the 5C system.
1. Credit quality: refers to the likelihood of customer performance or renege, is the primary factor in resolving whether or not to give credit to the customer, mainly through the understanding of the customer's past payment performance records for evaluation.
2. Solvency: the level of solvency of the customer depends on the quantity and quality of assets, especially current assets and their ratio relationship with current liabilities, the greater the number of current assets, the greater the current ratio, indicating that its solvency, the stronger the material guarantee of the debt, and vice versa, the solvency is poor, and the quality of current assets, that is, the realizability of the large, the solvency is strong, and vice versa, the solvency is poor.
3. Capital: reflects the strength of the customer's economy and the strength of the financial situation, is the ultimate guarantee of the customer's debt repayment.
4. Collateral: the assets provided by the customer as a guarantee of credit security must be actually owned by the customer and should have a high marketability, i.e., the ability to liquidate.
5. Economic condition: the impact of the unfavorable economic environment on the customer's ability to repay and whether the customer has a strong resilience.
Two, once the enterprise decided to give customers credit preferences, it is necessary to consider the specific credit conditions. The credit terms are the payment requirements that a company puts forward when it accepts a credit order from a customer, mainly including the credit period, the discount period and the cash discount.
1. Credit term: refers to the time limit that allows customers to pay for the goods from the purchase of goods. Usually, extend the credit period, can expand the sales volume to a certain extent, so as to increase the gross profit, but do not adapt to extend the credit period, will bring the adverse consequences to the enterprise, occupied in the accounts receivable funds increased, but also increase the risk of bad debt.
2. Discount period: is the period of time that the customer enjoys the discount, the period of time is determined mainly depends on whether the loss of the discount is less than the bank's interest on loans for the same period of time.
3. Cash discounts: actually the product selling price and deductions. Enterprises decide whether to provide and provide the extent of cash discounts, focusing on the provision of discounts after the proceeds are greater than the cost of cash discounts.
Three, in the enterprise to provide commercial credit to customers, must consider three questions: First, whether the customer will default or refuse to pay, and to what extent? Secondly, how to maximize the prevention of customer delinquency? Third, what countermeasures should be taken by the enterprise once the account is in default. These collection policies: refers to the collection strategies and measures that should be taken by a company when a customer violates credit conditions and defaults or even refuses to pay. The usual steps are, when the account for the customer to hold or refuse to pay, the enterprise should first analyze the existing credit standards and credit system is reasonable, and then, through the letter or send people to collect, when these measures are ineffective, you can file a lawsuit.
Secondly, for the accounts receivable, the enterprise should further strengthen the daily management, take strong measures to analyze, control, timely detection of problems, take countermeasures in advance to prevent the occurrence of bad debts. The daily management of accounts receivable includes the establishment of time value of funds, the reconciliation of accounts receivable, the analysis of accounts receivable and the establishment of bad debt preparation system.
1. Time value of money: it is the difference in the amount of value of a certain amount of money at different points in time. We know that today's l yuan and a year later 1 yuan is not equal value, if deposited in the bank, there will be interest generated, value-added occurs, then, over time, into the production and operation of the capital value-added, that is, the funds have the time value of money, as shown in the accounts receivable: if the enterprise has a loan, then more than one share of the accounts receivable, it pays more an interest expense, less a revenue; if there is no loan. If there is no loan, the enterprise will be less of a business capital investment, less of a value-added income; at the same time, the other party can use the accounts receivable for the operation of the production, in order to increase their own income, which is usually said to be "borrowed chicken eggs". Therefore, we must establish the time value of money, accelerate the recovery of accounts receivable. To minimize the cost of accounts receivable.
2. Accounts receivable reconciliation work includes two aspects: one is the general ledger and the ledger of the reconciliation, the second is the ledger and the customer unit of the reconciliation of the current account. In practice. Often appear the unit ledger balance and customer unit current balance of the phenomenon, which is mainly due to the disconnect between the reconciliation work. We know that often the sales department of these customers better understand, and they often only care about the sale of products, regardless of whether the money can be recovered, that the collection of money is the work of the financial sector, but at present, many enterprises because of the balance of accounts receivable are very large, the units involved are also a lot of units, coupled with the usual financial staff bookkeeping, reporting and other work would have been very busy. There is no time and energy to reconcile with the customer; furthermore, the general reconciliation work are creditor units to take the initiative to implement, so that the enterprise accounts receivable reconciliation work is stuck in a state of stagnation, so that the customer has an excuse to say that the current account is not clear and do not pay or delayed payment to the enterprise caused losses. Therefore, the accounts receivable reconciliation work should be from the first sales business should be by the sales staff on a regular basis with the customer reconciliation, and will be reconciled in a timely manner feedback to the financial sector. Marketing personnel can set up statistical ledgers according to the units under their management, and make sequential registrations of the products issued, invoices issued and the return of payments. And can be used in the form of bank statements to reconcile with customers and confirmed by the other party, so as to lay a good foundation for the timely settlement of accounts receivable. As a business operator, should be the money back and accounts receivable reconciliation work with the performance of the seller combined with the examination, so that they realize that not only to make the product sales, but also to make the money can be recovered in a timely manner or clear accounts to minimize the loss of bad debts.
3. The analysis of accounts receivable: is the risk of accounts receivable program to analyze, if necessary, to take certain measures to reduce the degree of risk of accounts receivable. In the work, we can borrow the inventory management in the ABC classification management method of accounts receivable classification analysis.
①Classification of accounts receivable according to the reasons for the generation of accounts receivable: a class of customers is based on the idea that the loan during the credit period is regarded as a no-interest or low-interest loan obtained from the enterprise on credit, this class of customers will often try to prolong the time of payment, which largely increases the cost of the enterprise's accounts receivable, which are classified as human receivables. Should focus on management. Type II customers are accounts receivable arising from the temporary liquidity problems and the sale of products on credit with assets pledged or guaranteed. Since the mortgage or guarantee contract signed by both the purchasing and selling parties is legally binding, when the payment date comes, the collateral can be collected or auctioned according to the provisions of the contract in order to recover the accounts receivable, this type of accounts receivable is better secured, and it can be classified as Class B for management. Category III customers are accounts receivable due to differences in the timing of sales of products and collections. This type of accounts receivable is caused by the time difference, belongs to the real accounts receivable, in general, the customer will pay soon after receiving the goods, the security is very good, can be classified as category C, do not focus on it for management.
②Analysis based on the age of accounts receivable: In general, the greater the age of accounts receivable, the lower the likelihood of recovery, and the greater the likelihood of bad debts. Enterprises can be based on past experience will be the longest age, the risk of the largest accounts receivable classified as A, while the shortest age, the risk of the smallest accounts receivable classified as C, the rest of the classified B. For example, an enterprise has 10 accounts receivable***, of which 2 are 3-3.5, 6 are 0.5-1 year, while the rest are 1-3 years old. According to the enterprise's past experience with accounts receivable, the age of accounts receivable is most likely to be bad debts above three years, therefore, 2 accounts receivable of 3-3.5 years will be classified as category A, while the shortest age and the least risk will be classified as category C, and the rest will be classified as category B. -3.5 years of accounts receivable are classified as category A, l-3 years as category B, and the rest are classified as category C for management.
③Analysis according to the proportion of accounts receivable: should be in the accounts receivable account for a larger proportion of customers divided into eight categories, smaller customers are divided into category C, the rest of the B category. For example: a company's accounts receivable balance at the end of 1999 was 4 million yuan, of which 1.8 million yuan for customer A, 800,000 yuan for customer B, 750,000 yuan for customer C, 200,000 yuan for customer D, 170,000 yuan for customer E, 150,000 yuan for customer G, 90,000 yuan for customer G, 30,000 yuan for customer S, and 10,000 yuan for sub-customers. The analysis then shows that customer A has a weight of 45%, customer B has 20%, customer C has 19%, customer D has 5%, customer E has 4%, customer F has 4%, customer G has 2%, customer Sin has 0.8%, and subcustomer has 0.2%. Accounts receivable from customers A, B and C account for 84% of the balance and should be categorized as category A. The share of Xin and sub-customers is 1% and is categorized as category C. The rest is categorized as category B for management.