Research On Cash Flow Management Problem Of Y.L. Company

Cash flow is the core of survival for the small-and medium-sized enterprises.Limited by their sizes and human resources,the managers usually employ extensive and intuitive managements of cash flow in the daily activities of operations,investment and financing,which is practically lack of cash flow management links,such as the budget,supervision,and post-event analysis of receipts and expenditures.In this case,various risks in the cash flow cycle are even hindsight such that they cannot be effectively avoided,which leads to the end of enterprise development.Therefore,if the small-and medium-sized enterprises want to develop and grow,it is very important for to find and solve the problems in cash flow management.This paper adopts the research method of integrating theory with practice,aiming at the cash flow management problem that is most frequently faced and easily overlooked by small and medium-sized enterprises in the process of development and expansion.Taking YL,a small paint company,as the main research object,on the basis of a detailed investigation of the company’s operating conditions,accounting data and the basic situation of the industry,the detailed cash flow was carried out from four aspects of cash flow direction,process,flow rate and flow.Analysis of current management data and horizontal comparison with other three companies of different sizes in the same industry.Taking into account the significant differences in the production and operation characteristics of large-scale enterprises,based on the analytic hierarchy process and the fuzzy evaluation method,a comprehensive evaluation method of cash flow management suitable for the production and operation characteristics of YL’s small coating enterprises is proposed.By using this method,the main problem in YL’s cash flow management is explored,which includes formalized budget management,signle directrtion of cash flow,low flow rate,large flow fluctuation,and low quality.Combined with the company’s production and operation characteristics,from the establishment of a cash flow risk early warning mechanism and optimization YL company’s budget system,optimizing the account management process,and reasonable planning of corporate activities,put forward the improvement measures and optimization ideas of YL company’s cash flow management,in order to provide case support and experience reference for the related issues of cash flow management of small-and medium-sized enterprises.