The first financial risk report "Practice of Financial Risk Management in the Whole Process of Highway Construction Enterprises"
With the development of social economy and the improvement of scientific level, China's construction industry has developed rapidly, and people pay more and more attention to the cost management and control of construction projects. In order to gain a foothold in the fierce market competition, construction enterprises must improve their awareness of cost management, apply modern construction concepts, hire construction professionals and strengthen the cost control of construction projects.
Keywords: building construction; Construction enterprises; Cost management; control
The increasingly fierce competition mechanism in the construction market makes many construction enterprises face development difficulties. How to improve their comprehensive competitiveness in the market and break through the bottleneck of their own development is a problem that many construction enterprises must consider now. Construction enterprises must establish modern enterprise system, use advanced financial management system, give full play to the functions of pre-forecast analysis, in-process control and post-analysis, establish enterprise image and maximize enterprise value.
First, the status of cost control of construction enterprises
The lack of awareness of cost control in construction enterprises leads to the waste of materials and insufficient funds in the construction process. The main problems are lack of awareness of cost management, backward awareness of cost management and weak awareness of cost accounting. Before the project starts, construction enterprises need to use various data (basic price, material price, etc.). ) estimate the project investment to ensure that there will be no problems in the capital chain of the whole project. However, in the current situation, the budget is only carried out after the project construction, which brings the disadvantage that the factors affecting the project budget are not comprehensively considered, which leads to the inability to control the cost during the construction process and increase the whole project budget. During the whole construction period, it increased the financial pressure of the construction company itself and lacked the consciousness of cost management. At present, many construction enterprises can only calculate the cost after the project is completed. This traditional cost management method can not collect and process a large amount of data and information in the construction process in time, and can not find out the problems and reasons in cost management in time and accurately. The right medicine? Take effective measures to reduce costs and lose a lot of benefits.
Two, strengthen the implementation of the whole process of financial risk management for highway construction enterprises.
(A) continuous innovation in the financial management mechanism of construction enterprises.
At present? Mass entrepreneurship and innovation? In the new era, construction enterprises are no exception. They need to keep pace with the times and adapt to the needs of market development. Each construction enterprise can innovate and reform its internal institutions and systems according to its own characteristics and reality, so as to make financial management work have rules to follow. By continuously streamlining financial institutions, constantly improving the comprehensive business ability and quality of financial managers, and improving the assessment mechanism of business indicators, we can truly achieve clear rewards and punishments, clear rights and responsibilities and symmetrical information in enterprise management. Enterprises should give full play to the role of modern financial management. Make the best use of everything and people make the best use of it? Rational allocation of resources of construction enterprises, for centralized construction enterprises, through the recovery of financial management rights of subordinate projects, centralized to the upper level of enterprises, each construction project department does not need to set up independent financial management institutions, so as to achieve unified management, common planning and integration of construction enterprise management.
(2) Financial management to effectively improve the utilization rate of funds.
In order to continuously improve the utilization rate of financial expenses, construction enterprises need to establish a perfect fund accounting system, continuously strengthen the construction of bank credit information through good corporate social reputation, and continuously expand the utilization channels and source channels of funds through cooperation with banks and other financial institutions. In addition, construction enterprises should also reasonably adjust the financial leverage ratio, speed up capital turnover and circulation, and implement? Two lines of revenue and expenditure? Financial management system to ensure the transparency of enterprise funds use. Construction enterprises should establish a scientific financial cost accounting system according to their own actual situation, and make up for the vicious corruption of traditional finance through accounting supervision in three different stages: before, during and after, and put an end to bad behaviors such as making false accounts. Therefore, the comprehensive ability and quality of financial management personnel in construction enterprises should be continuously improved, and financial personnel should abide by professional skills and ethics, and provide scientific and perfect financial management information to higher institutions by constantly mastering new knowledge and learning new skills, so as to effectively implement management decisions.
(3) Accounting the construction materials and strengthening the management of the construction process.
Optimizing the engineering structure and accounting for building materials require the construction personnel to control every link, take care of every construction detail, check the engineering drawings regularly, ensure the rationalization of the construction project, arrange the engineering funds reasonably with the help of structural optimization technology, and strengthen effective cost control. Construction enterprises take engineering projects as cost accounting objects. In the process of construction, we should correctly handle the relationship between cost and quality, scheme design and other work, realize the best combination and pursue the ultimate effect of cost management. Strengthen the awareness of building quality, actively implement the method of total quality cost management, and standardize quality management; Strengthen the combination of scientific and technological progress and improvement of engineering quality, strive to improve the level of technical equipment, actively promote the use of new equipment, improve the technical content of construction production, and raise the awareness of cost management in the construction process. For example, in the construction process, electric mixers are used instead of manual mixing, and elevators are used instead of brick movers. , so as to control the use of human resources, improve work efficiency, reduce human errors and strengthen effective control of cost management.
Three. Concluding remarks
The purpose of cost control is to reasonably reduce costs, allocate appropriate manpower and material resources, and achieve the purpose of saving resources. Due to the particularity of the construction industry, the cost management of construction enterprises runs through the whole project. Scientific use of modern cost management methods can ensure that construction enterprises can obtain maximum economic benefits with minimum investment and enhance their competitive strength. Actively improving the cost management system and cultivating high-quality cost management talents are conducive to promoting the development of the entire construction industry.
References:
[1] Wang Qingyong. Analysis of Financial Risks and Countermeasures of Construction Enterprises [J]. Financial Economy, 2014,06: 222-224
[2] Xu Siheng. On how to control the financial risks of construction enterprises [J]. National Business Situation (Theoretical Research), 201,05:45-46
Financial Risk Paper Opening Report Part II Cash Flow Management and Financial Risk Prevention and Control
Financial management is a basic work in the process of enterprise management, and it is the guarantee for the steady development of enterprise to prevent operational risks. Cash flow is an important part of enterprise financial management. Managing it well will not only affect the quality of financial management, but also affect the development of enterprises. Therefore, strengthening enterprise cash flow management is of great significance to prevent enterprise business risks.
Keywords: cash flow management; Financial risk; risk prevention
The competition in the economic market is very fierce, and enterprises may encounter financial crisis at any time in the course of operation. Usually, the crisis is caused by insufficient cash flow of enterprises. Cash flow management refers to the management of cash inflow and outflow in a certain accounting period. Through the application of cash flow indicators, risks are decomposed and refined in advance to avoid financial risks.
First, the necessity of cash flow management
(A) the cash flow reflects the value of the enterprise.
Cash flow is the main factor of business activities. All activities in the business process need the support of funds. Without cash flow, enterprises cannot create value. Only by selling goods can enterprises realize the return of funds and reflect the value of enterprises, and cash flow reflects the value of enterprises. According to Rabaport's value evaluation model, enterprise value can be expressed by the ratio of free cash flow to discount rate. It can be seen that the future cash flow of the enterprise determines the future value of the enterprise. The stronger the cash flow of the enterprise, the greater the value of the enterprise, the stronger the ability to resist risks in the future business process, and the lower the financial risk. To some extent, the cash flow of an enterprise reflects its ability to repay debts and determines its value. Generally speaking, the stronger the solvency of an enterprise, the stronger its ability to resist risks. Therefore, cash flow is of great significance to its financial risk prevention.
(B) The cash flow reflects the risk of the enterprise.
1. The cash flow of an enterprise comes from the income obtained by the enterprise in its production and operation activities, and the outflow and inflow of cash flow represent the expenditure and income of the enterprise. In the process of enterprise operation, if the cash inflow shows a continuous downward trend, it may be caused by the following two reasons: (1) The sales of products produced by enterprises are sluggish, and the market management level of enterprise products needs to be improved. (2) There are a large number of credit cases in the process of product sales, and the funds are slowly withdrawn. At this time, enterprises need to strengthen the management of accounts receivable and speed up the pace of dunning. If the capital outflow of an enterprise is on the rise, it may be caused by the following two reasons: (1) For a period of time, there are problems in the cost management of the enterprise, and the management should pay more attention to it. (2) Product sales encountered difficulties, product extrusion, management expenses and sales expenses rose sharply.
2. Financial risk refers to the loss of debt repayment ability caused by borrowing funds in the business process, mainly referring to the risk of debt. The solvency of an enterprise refers to the ability to repay the principal of debt and the interest generated by debt. At present, the evaluation of an enterprise's debt repayment ability mainly depends on its profitability during its operation. But as far as the actual situation is concerned, the fact that an enterprise can make a profit does not mean that it can get a lot of cash, and making a profit does not mean that it has the ability to repay debts.
The second is to improve the cash flow management of enterprises and strengthen risk prevention.
(A) the preparation of cash budget
In the process of enterprise operation, the purpose of preparing cash budget is to truly reflect the reservation and inflow of funds in enterprise operation. Cash budget is based on a set of reasonable budget preparation, summarizing cash expenditure and income at the same time, and making corresponding balance plan according to the cash income and expenditure of enterprises. In fact, the sales, production, raw materials, manufacturing expenses and raw material budget of an enterprise are compiled by the relevant units in the enterprise according to the actual situation, and then the data are handed over to the relevant departments of the enterprise, especially the data is summarized. On the one hand, the cash budget can be compiled according to other budgets, on the other hand, it can also be obtained through the preparation of management institutions according to the cash budget of each grass-roots unit in the enterprise. Working out the cash budget can enable all departments of the enterprise to correctly examine the risks faced by all units in the enterprise in the course of operation, understand the use of resources by all units, and thus improve the management level. Through the preparation of cash budget, enterprises can estimate all kinds of expenditures that may occur in the future, which is convenient for enterprises to confirm the corresponding sources of funds. If the internal funds in the cash budget table are not self-sufficient, we should find financing channels as soon as possible to avoid the bankruptcy of enterprises due to financial problems in the future. After making the production strategy, enterprises need to attach importance to the concept of cash budget and budget the funds needed for the implementation of the strategy to ensure the rationality and operability of the evaluation strategy.
(B) to strengthen the control of cash flow
Under the background of global economic depression, enterprises should not only pay attention to cash management, but also pay attention to cash control, mainly because cash will have an important impact on the future development of enterprises. In order to control the cash flow of enterprises, we must start with delaying cash payment and speeding up cash income. If an enterprise encounters a capital expenditure decision in the course of operation, in order to ensure that the enterprise has enough funds, it can adopt leasing instead of purchasing. The key point of controlling cash lies in whether there is a system of mutual restraint in the internal control of enterprises. For example, any transaction in an enterprise cannot be handled by the same person from beginning to end, and the accounting and cash cashier work should be handled by different people. In addition, all the cash received by the enterprise every day should be deposited in the bank and cannot be used as payment funds without approval. When enterprises pay funds, except for a small amount of funds, large amounts of funds should be paid by cheque, so as to plan payment methods and improve management level.
(3) Reasonable financing
The normal business activities of enterprises need sufficient cash flow, so enterprises need to raise funds reasonably in the process of operation. Before raising funds, enterprises need to scientifically analyze the ratio between their existing funds and debt funds, and try to reduce the capital cost and financial risk of enterprises through the leverage effect of funds within the scope of risks that enterprises can bear. After the enterprise raises funds, it is necessary to dynamically track the debt situation of the enterprise, fully grasp the accounting situation of the enterprise, especially the short-term debt of the enterprise, and reasonably arrange the cash flow income and expenditure of the enterprise according to the specific situation of the debt, so as to ensure the balance of cash flow income in the enterprise operation process, effectively avoid the interruption of capital flow in the enterprise operation process and reduce the financial risk of the enterprise.
(D) rational planning, limiting funds
Most enterprises will have some surplus funds in the course of operation. However, enterprises cannot make profits by holding large amounts of cash. On the contrary, improper fund management may lead to the loss of enterprise funds, thus improving the danger and difficulty of enterprise financial management. Therefore, in addition to the above three contents, enterprise financial personnel should also pay attention to the management of idle funds and make reasonable plans for idle funds in order to improve the economic benefits of enterprises. Among them, an appropriate way to manage idle funds is to invest in short-term investment projects with low risk and certain income, so that on the one hand, it can pay the idle funds of enterprises, on the other hand, it must ensure that the funds in enterprises have strong? Mobility? You can kill two birds with one stone. When choosing short-term investment projects, enterprises need to pay attention to the analysis of liquidity, profitability and safety of investment, so as to avoid the shortage of liquidity when enterprises apply for funds because of excessive risks, which will affect the normal operation of enterprises.
Three. Concluding remarks
The cash flow of an enterprise can reflect the profit quality of the enterprise in the process of operation, and the control and scientific management of its risks can truly reflect the future operation status and development potential of the enterprise. At the same time, enterprises can reasonably analyze the profits and liabilities gained in the course of operation, so as to prevent business risks to the greatest extent and ensure the sustainable development of enterprises.
References:
[1] Li. Exploring enterprise internal control management and financial risk prevention [J]. Finance and Economics (Academic Edition), 2015,07:179-203.
[2] Yang Jia. Enterprise internal control management and financial risk prevention [J]. Foreign investment in China, 2013,09:177-178.
[3] Jie Chen. Analysis on the causes of enterprise financial risk and its prevention management [J]. Guide to Economic Research, 20 10, 19:87-89.
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