With the continuous development of China’s social economy, engineering-type machinery manufacturing enterprises gradually increase the proportion of credit sales in the overall sales in order to expand their market share, which often leads to a significant increase in the total amount of accounts receivable in the daily work of enterprises. Receivables so that enterprises have the possibility of bad debt losses, while the increase in the amount of daily receivables will not only increase the management costs of running the enterprise, but also increase the cost of capital, the amount of operating profit of the enterprise, the sustainable development of the enterprise has a very important impact.
Current problems in receivables management
At present, most enterprises have recognized the importance of receivables management, but there are still some major problems in the actual receivables management process, which need to be solved by enterprises.
(a) It does not immediately reflect the amount of accounts receivable occupied by the company and cannot truly reflect the asset status and operation level of the enterprise
Receivables are an important part of an enterprise’s liquidity, which can directly affect the quality and liquidity of assets. Due to the operating characteristics of engineering machinery manufacturing enterprises, the main engineering projects are more diverse and the production cycle of the projects is longer, thus increasing the management risk of receivables.
At present, most enterprises have certain problems in the accounting of receivables. In the accounting process, enterprises often misrepresent data in order to look better performance. The purpose of balancing receivables is usually achieved by means of early or delayed recognition of receivables, resulting in the failure to reflect the amount of receivables occupied by the company in a timely manner and the inability to know the true asset status exactly, which is very unfavorable to the capital turnover of the enterprise.
(2) Lack of systematic accounts receivable management system
The imperfect management system of accounts receivable is very unfavorable to the promotion of daily management.
First, the existing contract evaluation department cannot fully guarantee the quality of customers. At present, the contract evaluation department mainly relies on the information provided by customers to make risk judgment, and the credibility of information sources is not high, so it cannot make real credit ratings for different customers, which is an aspect of the imperfect management system.
Secondly, the existing means of collection strategies are not flexible enough. It cannot analyze whether customers have the ability to continue to repay according to their reasons for delaying payment. The dull working method cannot help enterprises minimize potential losses and is not conducive to cost control and capital accumulation.
(iii) Unclear regulations for credit sales of receivables
The problem of unclear regulations on credit sales of receivables is mainly manifested in the following aspects: First, in the process of credit sales of receivables, enterprises currently lack strict regulations on the time of repayment, and there are no corresponding incentives and penalties. This makes customers gradually lose the sense of urgency for repayment, and is also not conducive to the enterprise’s hierarchical management of customers.
Secondly, the lack of content in the credit sales regulations regarding the preferential treatment for customers who make timely repayments has, to a certain extent, affected the motivation of customers to make repayments, which is not conducive to the long-term work of enterprises.
Suggestions for effective improvement of enterprise receivables management
Strengthening the receivables management of engineering machinery manufacturing enterprises is of great significance to the development of enterprises. Enterprises should conduct a profound analysis of the actual problems that arise in the management process, and actively seek corresponding countermeasures to solve.
(A) establish a sound verification system, regular reconciliation of receivables
In order to improve the receivables management of engineering machinery manufacturing enterprises, we should first of all improve the internal verification system of enterprises, and regularly review and audit the amount of receivables. Establish a quarterly and annual inventory and regular reconciliation system. The account reconciliation work with customers’ receivables can be conducted at the end of each quarter and the end of the year, and correspondence notices can be issued on time to ensure the timeliness of claims. On the other hand, we can also remind customers to prepare their funds in advance so as to increase their goodwill to our company.
In addition, we should pay attention to the limitation of accounts receivable and strengthen the aging management. Actively deal with accounts receivable with an age of more than six months, and strictly control the proportion of corporate funds accounted for by excessively long accounts, so that the company can operate smoothly.
(2) Optimize accounts management system to reduce enterprise operation risks
In order to effectively improve the receivables management level of enterprises, we can further optimize the accounts management system.
First, set up a special accounts receivable management department. Through a professional management department to carry out systematic receivables management, we can control different credit customers according to their own characteristics, improve the success rate of receivables recovery, and provide a good prerequisite for the smooth operation of enterprise funds.
Secondly, it is mandatory for the management department to regularly prepare the balance breakdown of accounts receivable. Checking the recovery of enterprise accounts receivable on time by customer unit, aging, and credit amount, and keeping abreast of the real situation of the actual work can help enterprises significantly improve their efficiency, thus reducing the risk of enterprise operation.
(C) the use of information management tools, cut into the ERP system project management module, instantly reflect the company’s receivables occupancy status of each project
With the continuous development of the times, machinery manufacturing enterprises should also be timely to introduce modern internal management tools to improve the overall information level of the enterprise.
First of all, the enterprise should carry out information management tools configuration, according to the actual operation of the company and the main project characteristics of the information management system design. The project management module is cut into the existing ERP system to manage receivables electronically. Strengthen the accuracy and timeliness management of all kinds of documents, and help the enterprise to successfully raise the management level of receivables to a new level.
In addition, companies should also start to pay attention to the quality training of their employees. Group training activities should be held regularly to promote new management methods and ideas. Only when the overall quality of employees can be improved can they better understand the concept of information management and master the new way of receivables management as soon as possible, so that the quality of receivables management can be fundamentally guaranteed.
With the increasingly fierce competition in China’s economic market, the importance of receivables management has become increasingly apparent. High-quality receivables management can help enterprises reasonably avoid operational risks and enhance corporate liquidity, which is of great significance to the sustainable development of engineering machinery manufacturing enterprises. At present, machinery enterprises should identify the shortcomings of their own management, and actively seek ways to solve them, in order to seek better development.