Research On Cash Budget Management Of X Tobacco Company

Cash provides an enterprise with "blood" and "lifeline",and the budget management is a main approach to manage cash.The "lifeblood" of the enterprise is assured by the effective cash budget management that should not merely ensure the liquidity of cash but also weigh in on its profitability.Only in this way,can the "healthy"and sustainable development of the enterprise be guaranteed.For the past few years,changes in the business environment of cigarette make the tobacco industry challenged by descending growth rate of profits and taxes.Tobacco enterprises,as part of capital-intensive industry,are financially abundant and strongly profitable.However,the restrictions on cigarette sales plan indicators render the failure in using surplus fund for expanding the production and business scale,so it is of practical significance for the tobacco industry to improve capital gains via strengthening cash management.As proposed by the State Tobacco Monopoly Administration,the availability of cash shall be improved,the potential of cash earnings growth shall be tapped,and lean management shall be deepened to lay a solid foundation for growth.In recent years,X Tobacco Company,as a prefecture-level tobacco commercial enterprise in S Province,has been exposed to descending economic benefits.In the company,bank an cash occupies more than 60%of the total assets,and tremendous capital is mainly managed in the way of budgeting.With the practice of nearly two decades,the cash budget management has contributed to strengthened capabilities to capital control and improved capital revenues to a certain extent.Nevertheless,problems like slacking cash budget,absence of scientific and reasonable basis and standard of cash budget management as well as missing assessment and incentive can be found in the whole process of cash budget management.By analyzing the main financial index and cash budget management of X Tobacco Company,this article starts from lean management theories and indicates the deficiencies and causes to existing cash budget management,thus ascertaining the direction of cash budget management optimization.In consideration of the status of X Tobacco Company,following steps have been emphatically taken to move up the capital management ladder.Firstly,a budget ration standard system fitting the enterprise’s features is constructed to clarify the criteria and basis for cash budget management.Secondly,the process control of cash budget management is consolidated by optimizing its work flow and methods,mainly from compilation and ratification,execution,and analysis,therefore controlling the entire production and management process of the enterprise.Thirdly;the management process and execution outcome of cash budget are evaluated to restrain and motivate the budgeting and executive subjects.From the above measures,a cash budget management system inured to the characteristics and management needs of its own has been established in X Tobacco Company.And the main financial data of X Tobacco Company in 2017 are used for eventually validating the improved effects of cash budget management,which has not only promoted the cash income level,reduced costs while heightened effects,but also improved the enterprise level for basic management.This paper takes X Tobacco Company as the specific research object,systematically introduces the specific application of cash budget management in X Tobacco Company,and enriches the case of the combination of domestic cash budget management theory and practice.Taking the lean management thought as the tool,it optimizes the cash budget management flow,enhances the cash budget management effect,and enriches the cash budget management research method;The quota standard and performance appraisal are applied to cash budget management,which realizes the full integration of cash budget management and enterprise management system,to provide reference for other enterprises’ cash budget management.