How to deal with accounts receivable as factoring accounts?

Accounts receivable factoring business is carried out according to the following steps: recording accounts receivable transfer, recording accounts receivable factoring fees, confirming cash income, handling liabilities and expenses, adjusting accounts receivable and reporting disclosure.

1. Record the transferred accounts receivable: confirm the transferred accounts receivable as sales, reduce the accounts receivable recorded in the book and increase the accounts receivable of the accounts receivable factoring company.

2. Record the factoring cost of accounts receivable: according to the agreement with the factoring company, record the factoring cost of accounts receivable, which is usually calculated as the use cost of funds according to a certain proportion and included in the expense account.

3. Confirmation of cash income: When the factoring company pays funds to the enterprise, the cash income is confirmed and included in the cash flow statement.

4. Handling of liabilities and expenses: If the factoring company requires the enterprise to bear the risk of accounts receivable repurchase, the liabilities need to be handled and included in the expense account.

5. Adjustment of accounts receivable: During the factoring period, the enterprise still needs to recover the money from the original debtor, so it needs to adjust the accounts receivable and recalculate the remaining unrecovered money after factoring into accounts receivable.

6. Report disclosure: In the financial statements of the enterprise, it is necessary to clearly disclose the relevant information of accounts receivable factoring, such as amount, expenses, liabilities, transfer adjustment, etc.

Matters needing attention in handling accounts receivable factoring business

1, clearly recorded contract terms: ensure that the contract with the factoring company contains clear terms, and clarify the responsibilities and rights of both parties, including the conditions for the transfer of accounts receivable, the cost structure, the repurchase risk, etc.

2. Disclosure of financial statements: Clearly disclose the relevant information of factoring business in the financial statements, including the transfer amount of accounts receivable, factoring expenses, liabilities and adjustments, so that users can understand the financial status and operation of the enterprise.

3. Repurchase risk analysis: If there is a risk of repurchase of accounts receivable in the factoring agreement, the enterprise should carefully evaluate the impact of this risk on the financial situation and business activities, and make corresponding debt treatment and expense accrual.