How to manage accounts receivable and collections

[China Glass Network] In the face of increasingly fierce market competition, safe and effective management of accounts receivable is a must for enterprises in the development process. This article starts from four perspectives and discusses how to manage accounts receivable in the daily sales process.

Sales, financial supervision

First, specify the terms in the sales contract

When signing a sales contract with a dealer, pay attention to the following items to avoid business risks arising from the disagreement with the dealer when handling the accounts receivable in the future:

1. Clarify various trading conditions, such as: price, payment method, payment date, transportation, etc.;

2. Clarify the rights of both parties and liability for breach of contract;

3. Determine the contract period and sign it again after the contract is over;

4, stamped the dealer's contract special seal (to avoid the private seal or signature of individual behavior);

Second, regular financial reconciliation

Finance should form a regular reconciliation system. Every three months or half a year, you must check the accounts with the dealers. The following situations are likely to cause errors in documents and amounts. Manufacturers should pay special attention to:

1. The product structure is multi-variety and multi-standard;

2. The payment period of the product is different, or the payment period of the same product is different due to different operating conditions;

3, when the product appears flat, return, exchange;

4. The dealer cannot return the money by single-to-order (sales receipt or invoice);

5, to actively refuse to use the money to support other payments (customer rebate, damaged product payment, advertising, terminal sales promotion costs, etc.);

The above situation will bring difficulties to the management of accounts receivable. Therefore, it is necessary to formulate a standardized and regular reconciliation system to avoid the financial gap between the two parties becoming more and more like snowballing, resulting in the phenomenon of staying and dying. At the same time, it is necessary to form an instrument with legal effect after reconciliation, instead of a verbal commitment.

Third, the correct understanding of the product distribution rate

If the product distribution rate increases, it will increase sales opportunities (increasing the convenience of consumers' purchase), but the accounts receivable and operating risks will also increase. If the distribution rate is lowered, the business risk will be reduced, but it will not be achieved. The goal of scale sales. Therefore, correct and reasonable solution to the problem of product distribution rate is helpful to reduce the accounts receivable and ensure the security of the payment. Therefore, we recommend different product distribution policies in different sales stages of products, or according to different sales strategies of products, or according to the strength of market promotion.

Fourth, reduce the sales and sales of consignment

The salesperson adopts a credit sales and sales agency operation mode in order to quickly occupy the market or to complete the sales target. This sales model is the soil that the dealers are in arrears with the receivables, and it is easy to cause the occurrence of dead and dead accounts. We must formulate corresponding sales incentive policies, encourage dealers to cooperate in the form of purchase and sales, cash in stock, etc., to minimize the method of credit sales and consignment.

V. Formulate a reasonable incentive policy

When formulating marketing policies, we must incorporate the management of accounts receivable into the project for the evaluation of sales personnel, that is, personal interests should not only be linked to sales and return performance, but also to the management of accounts receivable. Formulate reasonable receivables and rewards and penalties regulations so that accounts receivable are within reasonable and safe scope.

6. Establish a credit rating and audit system

In the actual work, there are very few dealers who can really realize the spot cash. We have to establish a credit rating and audit system, and give different dealers different credit lines and deadlines (usually half a year). The credit management of dealers should adopt a dynamic management method, that is, re-evaluate the credit status of dealers according to the preliminary cooperation situation every six months.

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