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On The Perfect Cash Flow Management System

2008/10/18 13:53:00 41872

Under the influence of the global economic crisis, many enterprises are facing tremendous pressure.

Some seemingly healthy enterprises even face the threat of bankruptcy.

Many facts in history have proved that the key to the rise and fall of enterprises is not the financial strength but the cash flow of enterprises.

Therefore, the importance of cash flow is getting more and more attention from fund managers.

Cash flow management should match the life cycle of an enterprise.

The life cycle of an enterprise refers to the process of the birth, growth, growth, decline and death of an enterprise.

In the different stages of development, cash flow often presents different characteristics.

Therefore, in the process of cash flow management, enterprises should not be treated equally, but should be differentiated according to the operational characteristics of each period.

　　在初创时期，企业的现金净流量通常表现为负值，即现金流出大于现金流入。这一时期企业现金流管理的核心就是要尽量维持企业的不发生资金短缺，有足够的资金能够支持企业的创建。

　　在成长期，随着企业不断扩张与发展，企业的现金流量会迅速增加，资金的压力虽然没有前期来的那么大，但是随着企业扩张速度的加快，企业仍会有大量的营运资金被占用。在这个过程中，企业要处理好的主要问题就是企业扩张规模与现金流增长之间的矛盾。

　　在成熟期阶段，企业的发展已经相当稳健，市场地位雄厚，市场份额稳定，现金流出和流入量基本稳定。这个时候就需要企业尽量的将成熟期进行延长，充分利用财务杠杆提高企业收益。

　　在衰退期阶段，企业经营业务开始退缩，现金流入不足，由于滞后效应，相对现金流出量较大，在此阶段企业现金流量循环可能会出现断流，导致供血不足而破产。在此阶段，企业应当注重新业务的开发，或是将资产变现以支持企业的正常生存。

加强企业现金流的管理

In the process of cash flow management, the first thing that enterprises should do is to plan the cash flow of enterprises.

Enterprise cash flow planning is an overall and long-term strategic plan for enterprises according to the internal and external environmental factors and their changing trend. It is a comprehensive strategic project, which has guiding and directional significance for all cash movements and even the utilization of all resources.

Enterprise strategy has a long-term and fundamental role in the overall situation of enterprises. Therefore, it is necessary to objectively carry out environmental impact analysis and enterprise strategy analysis to ensure that cash flows are coordinated with environmental changes.

Only in this way can we ensure that the cash flow management of enterprises can not deviate from the general direction and general goal stipulated by the enterprise strategy, so as to greatly enhance the effect of strategic cash flow management.

In addition, we need to establish a sound cash flow budget management system.

The operation of enterprises' capital is embodied in fund-raising, utilization and distribution, and cash inflow and outflow are its comprehensive manifestations.

In the course of the actual operation of enterprises, strategic planning must be pformed into the general budget of enterprises, and the strategy of enterprises should be materialized through the budget of cash flow.

The cash flow budget includes the general budget and the daily budget. The cash flow general budget focuses on planning and controlling the macro operation activities and investment and financing arrangements of enterprises, ensuring the realization of the strategic objectives of enterprises. The daily cash flow budget manages the cash arrangements of daily business activities to ensure the continuous, healthy and orderly turnover of cash flow, so as to ensure the normal operation of business activities.

Secondly, we should optimize the management process of cash flow.

We should do well in the procedures of cash circulation and the arrangement of key points in internal control, the design of cash internal control system, the arrangement of enterprise credit policies and the recovery of accounts receivable, the withdrawal of sales proceeds and the arrangement of their processes.

The internal control procedures and procedures for the organization, post, authorization and handling of cash receipts and payments involving cash flow are regulated through the system.

Every internal control link should have clear responsibilities and performance appraisal.

In addition, we must seize the key factors that affect cash flow.

One of the purposes of cash flow management is to improve the efficiency of cash utilization, that is, cash flow management. As stated previously, the cash flow rate can be measured by the cash conversion cycle. Effective cash flow management is to minimize the cash pfer cycle on the premise of satisfying the operation of the enterprise.

The ways to shorten the cash flow are as follows:

(1) shortening the turnover period of inventory;

(2) shorten the turnover period of accounts receivable;

(3) to extend the turnover period of accounts payable.

Fourth, we must establish a cash flow risk analysis and early warning system that is in line with the characteristics of enterprises, and master the methods and skills of cash flow crisis management.

The risk of cash flow is the risk of inflow of cash flow. Because the environment of enterprises is becoming more and more complex, the speed of technological updating is faster and faster, and the life cycle of products is becoming shorter and shorter. Inevitably, enterprises will encounter risks such as market mutation and policy adjustment. Through the cash flow risk early warning system, a quick response mechanism of risk and crisis management can be established to maintain good relationship between banks and enterprises and loyal customer resources.

Once there is temporary difficulty in cash flow, it can also be resolved sooner.