Abstract:With the continuous economic development, enterprise’s normal operation becomes very important. Chinese enterprises have a lot of problems in the management of accounts receivable, which has seriously affected the company’s cash flow and normal operation. Payment arrears between enterprises that cause too much accounts receivable, which has a great impediment on the market. Enterprises have too much bad debt that not treated. Enterprises sold the goods while they can not get cash. And the enterprises have not taken effective measures to address this situation. Over time, the company’s working capital becomes difficult, enterprises lack a lot of cash, therefore, the enterprises’ accounts receivable have been very serious management problems.
At present, corporate receivables management methods can mostly not solve the dilemma faced by enterprises, many companies are unable to function properly, they fell into financial crisis, this requires that we actively seek effective ways to manage accounts receivable, to exercise effective control.
Keywords Accounts receivable Working capital Effective control Financial crisis...