What Does an Accounts Receivable Accountant Do?

Accounts receivable risk refers to the increase of bad debt losses, capital costs and management costs caused by corporate accounts receivable. The risk of accounts receivable grows in proportion to the size of accounts receivable. The greater the sales volume achieved by an enterprise using commercial credit, the higher the risk of accounts receivable. Therefore, it is an important part of modern enterprise operation and financial management to carry out effective risk control on account receivables, enhance risk awareness, and formulate precautionary measures.

Accounts receivable risk

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1. Accounts receivable continue to increase, which is likely to cause enterprises

1. Enterprises pursue one-sided competition and lack awareness of risk prevention

Under the fierce competition mechanism of modern society, enterprises

In order to prevent risks, we cannot only focus on sales in order to achieve business indicators. We must strengthen the management of accounts receivable and collect accounts receivable in full and on time.

1. Strengthening the management of accounts receivable must be highly valued and strongly supported by the company's top management

Taking Chengdu Construction Engineering Concrete Engineering Co., Ltd. as an example, the specific approach is to set up a accounts receivable management team led by the company's general manager and chief accountant. Under the jurisdiction of specific account receivables, department managers, account receivables accountant of the Ministry of Finance, debt management department staff. The specific responsible person is responsible for applying for issuance of invoices and collections; the department manager is responsible for supervision and guidance; the accounts receivable accountant of the Finance Department is responsible for tracking, analysis, and evaluation of the accounts receivable; the debt management department is responsible for the maintenance and management of claims. The result of this is that in the entire process from preparation, formation and recovery of accounts receivable, there are relevant personnel to perform their duties, thereby ensuring that accounts receivable can be quickly and safely recovered. It also takes the form of weekly meetings to comprehensively solve existing problems and reduce communication costs.

2. To strengthen the management of accounts receivable, we must establish a concise, effective and fair assessment mechanism.

It is directly linked to the economic interests of those responsible, so that the rules are concise, rewarded and punished, rewards and punishments are well-founded, and rewards and punishments are moderate. This requires the analysis of the company's account receivable recovery cycle, the opportunity cost and management costs resulting from the extension of the recovery cycle, so as to formulate practical incentive measures. The company implements the recovery target tasks according to customer breakdowns, and conducts strict evaluations with clear rewards and penalties. It includes the collection of arrears and the control of bad and bad debts into the performance evaluation to mobilize the enthusiasm and effectiveness of the staff.

3. To strengthen the management of accounts receivable, it is necessary to streamline its internal control process and the control of process implementation.