Discussion on Problems and Countermeasures About Accounts Receivable Management in SMEs

Abstract

With the development of market-oriented economy, competition is getting increasingly fierce, making sell on credit an important way taken by numerous SMEs to fight for customers, increase sales revenue and expand business scale. Accounts receivable refers to the fund related to sell on credit products and rendering of services that should be charged from buyers and receivers by enterprises, which can help SMEs to expand sales and increase profit. However, the credit of some customers during the sell on credit is low, so the phenomenon of overdue obligations to suppliers is severe, resulting in the surge of accounts receivable by SMEs. It becomes the burden of SMEs and even triggers the business crisis of them. Therefore, only by strengthening the accounts receivable management in SMEs can it be possible to improve the market competition of SMEs. Via the analysis and research of accounts receivable problems in SMEs, countermeasures are proposed in this paper, so as to reduce the negative influence of accounts receivable on SMEs and enable SMEs to realize the benefit maximization through accounts receivable.