| dc.description.abstract | In the meager profit era, in addition to maintaining stable performance, enterprises should achieve every account receivable, otherwise unexpectedly bad debts will occur which may cause the creation of revenue waste. Therefore, the planning of customer credit policy is a very important topic for business. How to do a good management of accounts receivable is the basis of business operation. In addition to continuous growth in revenue, enterprises must also establish an effective credit management process. However, in the process of business transactions, it is inevitable to give customers certain credit terms. While using credit terms to bring business opportunities, it will also expose enterprises to credit risks. Enterprises can control risks and reduce the erosion of corporate profits through appropriate credit management process. Credit management is the process by which a business provides credit terms to customers and ensures that customers pay within the due day. Good credit management relies on the cooperation between finance and sales teams to achieve a balance between risk and opportunities. Transactions between enterprises are often carried out in the form of credit. In addition to the advantages of simplicity and convenience, credit is also one of the important ways for enterprises to consolidate cooperation with customers and acquire new business. Trade credit is a unique business tool. Compared with companies that require customers to pay immediately, those companies that allow customers to pay in a certain days after delivery are naturally more attractive. However, with the extension of the credit period, the risk of non-payment will also increase. For enterprises that provide credit, the amount involved in the transaction is enough to affect their operating profit and even their survival. The purpose of credit management is to reduce business risks and at the same time enhance the attractiveness of enterprises to customers. Poor credit management is one of the reasons for the bankruptcy of most companies. If the company cannot properly manage accounts receivable, the company that was originally in surplus will also have a shortage of working capital and be unable to repay creditors. Therefore, customers who delay payment may affect the cash flow and goodwill of the company. Businesses should conduct due diligence to avoid dealing with late payments, customers on the verge of bankruptcy, or scammers looking for opportunistic fraud. Before signing a contract, thoroughly investigate the background of all new customers. After signing the contract, keep in touch with the customer and formulate a monitoring system to thoroughly implement the management process of accounts receivable to prevent the occurrence of bad debts. If bad debts occur unfortunately, there are other channels to compensate the loss. This is what enterprises should think about and implement when managing customers account. This study, through the content analysis method and interview method of the case company, is compiled into a fishbone diagram of credit control management, and it is recommended for enterprises to reduce the causes and key practices of bad debts in accounts receivable. | en_US |