Accounts Receivable to Total Assets = (Accounts Receivable Opening Balance + Accounts Receivable Ending Balance) / (Total Assets at the Beginning + Total Assets at the End) * 100%.
Accounts receivable indicates the funds occupied by the purchasing unit in the sales process of a company. The role of accounts receivable is its role in production and operation. The occurrence of accounts receivable means that some of the funds of the business are occupied by the customers and also there is a cost for the business to hold the accounts receivable.
Money funds, accounts receivable and inventory as a percentage of current assets are 29.14 percent, 45.02 percent and 21.33 percent respectively, indicating that the company's current assets are well structured and realizable.
Expanded Information:
Accounts receivable of a company is a good indicator of its liquidity. p>The management of enterprise accounts receivable includes the establishment of accounts receivable accounting methods, determining the best opportunity cost of accounts receivable, formulating scientific and reasonable credit policy, strictly managing credit sales procedures, adopting flexible marketing strategies and collection policies, and strengthening the daily management of accounts receivable.
1, pay attention to credit investigation.
Credit investigation of customers is an important part of daily management of accounts receivable. Enterprises can check the customer's financial statement, or according to the credit information provided by the bank to understand the customer to transform the credibility of the debt service obligation, the debt service ability, the degree of capital security, whether there is sufficient collateral or guarantee, as well as production and operation and other aspects of the situation, and then determine the customer's credit rating as a basis for deciding whether or not to provide credit to the customer.
2, control the amount of credit sales.
Control of credit sales is to strengthen the daily management of accounts receivable is an important means, the enterprise according to the customer's credit rating to determine the amount of credit sales, different levels of customers to give different credit limits. The accumulated amount must be strictly controlled within the risk acceptable to the enterprise. In order to facilitate day-to-day control, the enterprise has to record the credit sales amount that has been determined on each customer accounts receivable details, as a warning point of the amount balance control.
3, reasonable collection strategy.
Accounts receivable collection strategy is to ensure the return of accounts receivable effective measures, when the customer violates the credit, the enterprise should take strong measures to collect the accounts, such as these measures are ineffective, then you can resort to the court to solve the problem through the legal channels, but do not easily resort to legal means, otherwise you will lose the customer.
Baidu Encyclopedia-Accounts Receivable