Analysis of Accounts Receivable and Credit Policy Management in Biopharmaceutical Enterprises

Han Na
Anhui Vocational & Technical College, Hefei, Anhui, 230011, China.

DOI:https://doi.org/10.5912/jcb1921

Abstract:

Biopharmaceutical companies need to ensure a balance between revenues and expenditures in order to maintain healthy growth. This paper synthesizes biological concepts and provides insight into accounts receivable and credit policy management in biopharmaceutical companies. The importance of accounts receivable management is emphasized by analyzing the prevalent risk factors faced by enterprises in accounts receivable management in the process of product development. Measures such as revising the credit policy management system, setting up a credit management department with clear responsibilities, enhancing management awareness, and constructing a reasonable sales information management system are proposed. Building a reasonable sales information management system is equivalent to the information transmission and feedback mechanism of an organism. Through the establishment of an efficient information management system, enterprises can better grasp the situation of customers, keep abreast of the situation of accounts receivable, and take corresponding measures. The result shows that the current asset turnover ratio of accounts receivable under October-December 2022 is 55%, which is 25% higher than the same industry. It confirms the effectiveness of the credit policy management, which enables the enterprise to reduce the risk of accounts receivable and prompts the enterprise to realize healthy development.