Control accounts receivable risk，Financial professionals must master these contents!

Control accounts receivable risk，Financial professionals must master these contents! Accounts receivable is an accounting account，Refers to claims arising from the sale of goods or services，and the claim has not yet accepted any form of written commitment。The occurrence of accounts receivable means that part of the company's funds are occupied by customers，in monetary tightening、Market is weak、Provided funds to customers despite lack of funds。

but，There are great risks in companies holding accounts receivable，The reason for this risk、What exactly is the impact? How should it be solved? one、Reasons for the risk of accounts receivable (1) Weak awareness of debt collection in actual work，Some companies set aside bad debt provisions based on the amount of accounts receivable.，when certain conditions are met，Enterprises treat it as bad debts in financial processing，be written off。

Although this accounting treatment does not mean the elimination of creditor's rights,，But this often dilutes the company’s awareness of debt collection。also，The lack of coordination between sales and collections makes corporate marketers focus on sales and give less consideration to collecting debts.，In addition, insufficient efforts are made to collect debts，It is also the reason for the risk of accounts receivable。

1. Failing to properly manage the collection of debts receivable. Some companies have failed to properly manage debts receivable.，As a result, the recoverable debt cannot be recovered，Or only a part of the debt that could have been recovered in full was recovered.。

Due to insufficient internal communication，Cause work disconnect，Failure to report the amount of accounts receivable owed by the customer、Announcement of aging and increase/decrease status，In order to achieve the effect of supervising relevant personnel to collect collection，In particular, there is no classification and filing based on customer debt status.，Failure to collect overdue accounts receivable in a timely manner，Causing bad debts to the company、bad debts。

1. There are certain problems with collection methods and procedures
2. Enterprise in operation，Often focus on larger amounts owed，Don’t pay attention to smaller debts，This resulted in a large number of smaller arrears.。
3. In the process of debt collection，Business people often focus on superficial debt collection，Lack of in-depth understanding of the debtor’s operating conditions，Unidentified operating difficulties、insolvent enterprise，resulting in bad debts、The occurrence of bad debts。
4. Companies often only

Require

Debtor responds verbally，not yet

Require

The other party makes a written repayment commitment，Even if you encounter difficulties in collecting debts, you will retreat.，No pursuit to the end，Even the verbal replies are mostly just a formality.，Even without knowing the relevant laws，Negotiate privately with debtor only，This resulted in a large number of debt collections，But they are not legally valid debt collection。

two、The impact of accounts receivable risks on enterprises (1) Inflated profits，When a cash flow shortage occurs in accounts receivable, the accounting treatment is to debit "Accounts Receivable" and credit "Main Business Income"、"Taxes payable、VAT payable (output tax)”。therefore，From the accounts，An increase in accounts receivable will increase a company's profits，However, the increase in corporate profits does not mean that cash inflows can be realized as scheduled.。

The existence of large amounts of corporate receivables，Inflated sales revenue on books，To a certain extent, the company's profits are artificially increased，However, enterprises have to use limited working capital to advance various taxes and

cost

，Accelerates corporate cash outflows，Adding burden to corporate capital transfer。

1. generate collection

cost

The formation of a large number of accounts receivable increases the cost of managing accounts receivable，For companies with large amounts of accounts receivable，In addition to the financial staff who manage accounts receivable，The company also set up a debt settlement office。Clear travel expenses owed to personnel、Various reminders such as subsidies

cost

Spending increases a business’s

cost

expenditure。When disputes arise over debt and necessitate legal proceedings and bankruptcy filings，It will consume a lot of manpower of the enterprise、Material resources。

three、Legal advice on controlling accounts receivable risk

1. Do preventive work in advance. The most important thing in preventing legal risks is to prevent risks in advance.，Be prepared for danger in times of peace，Prepare for a rainy day，This is useful for controlling the risk of accounts receivable.，It's the same。
2. Enterprises should pay attention to examining the subject qualifications of debtors、Business scope、Is the business content legal?、Solvency、Basic issues such as whether it has good business reputation。
3. What's more important，Ask the counterparty to provide a guarantee (performance bond or letter of guarantee) before signing the contract，Because guaranteed claims have priority over other claims,，This is an effective way to reduce risk。
4. Pay attention to the validity and enforceability of contract terms，Do not blindly believe in the other party’s verbal promises or relevant supporting materials。
5. Pay attention to the creditor's operating conditions. Creditors often neglect to understand and monitor the debtor's operating conditions.，Believing that repaying debts is a natural thing，After the debt is due，The debtor's production and business conditions have seriously deteriorated、Facing bankruptcy，Or the building has already been deserted。In this case, all outstanding debts must be recovered smoothly，The difficulty can be imagined。

If it is discovered that the debtor’s operating conditions have seriously deteriorated after the debt arose,，or transfer of property、Escape funds，or loss、Possible loss of ability to pay debts, etc.，necessary countermeasures should be taken。

1. Take timely and effective measures to collect debts. Effective debt collection methods include but are not limited to negotiation.、mediate、Arbitration and litigation, etc.，If used properly，Will produce twice the result with half the effort，But because some creditors often do not want to hurt their goodwill,，Prolonging the negotiation phase too long，Thus, a good opportunity to collect the debt is missed.。
2. Application for payment order is based on Article 214 of the Civil Procedure Law，Creditor asks debtor to pay money、securities，Meet the following conditions，You can apply for a payment order to the grassroots people's court with jurisdiction：
3. The creditor and the debtor have no other debt disputes；
4. The payment order can be served on the debtor。The application shall state the amount of money or securities requested and the facts on which it is based.、evidence。

Advantages and Disadvantages：It can be seen from the above legal provisions，The biggest advantage of applying to the People's Court for a payment order to recover arrears is that it takes a short time、Quick effect。but，If the debtor submits a written objection to the People's Court within the statutory time，must be dealt with through litigation procedures。2、Litigation Litigation is the most effective and final means of protecting creditor's rights。

A creditor may file a lawsuit before or after，Apply to the People's Court for property preservation，To ensure that the debts owed can be successfully recovered after the judgment.。Advantages and Disadvantages：Litigation relies on state coercion to ensure execution，As long as the debtor fails to fulfill the legal documents that have been effective by the People's Court，The creditor may apply to the People's Court for compulsory execution。

but，Litigation often takes longer，Cases heard by the People's Court using ordinary procedures，The case should be concluded within six months from the date of filing the case。There are special circumstances that require extension，Approved by the president of the hospital，Can be extended for six months；Still needs to be extended，Submit to the superior people's court for approval。(4) Pay attention to the collection of evidence and implement the "who claims" civil litigation，"Who gives evidence" principle，If the party concerned is unable to provide evidence for his or her claim,，will bear adverse legal consequences。

Evidence collection should be done during normal times and not after disputes arise.，Attention should be paid to accumulating the following evidence in daily work：

1. contract or agreement；
2. Delivery note (the company’s official seal must be stamped)；
3. consignment note；
4. IOU；
5. Various settlement bills；
6. Other telegrams related to the debt、fax、Letters, etc.。
7. Master the statute of limitations，"The law does not protect those who are lazy to exercise their rights." The statute of limitations refers to the right holder's failure to exercise his rights within a certain period of time.，That is to say, they lose the possibility of protecting their rights according to litigation procedures.。If the parties concerned do not assert their rights within the time limit specified by law,，will lose the right to win the lawsuit。The ordinary statute of limitations in my country is two years。

therefore，Creditors should handle matters related to debt collection within two years after the creditor's rights expire.，Pay attention to debt collection，To cause the creditor's rights to be interrupted, etc.。

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