Research On How To Improve The Flexibility Of Business Financial System By Utilizing Flexible Budget

Business financial system faces many uncertainties. Flexibility of business financial system is the capability of dealing with the uncertainties deriving from the financial environment rapidly and economically, anytime, anywhere. The aim of this paper is to study how we can improve the flexibility of financial system by utilizing flexible budget, based on summarizing the theory of business financial management system and flexible budget.The paper begins with the content cycle of business finance and analyses the influencing factors deeply, then, in the light of the theory of flexible budget , prepares financing plans .investment plans, active capital plans and profit appropriation plans, explores the flexibilities of the content cycle of business finance respectively, using charts, examples to express the buffer, adaptation, creativity of business financial system.The first chapter reviews and summarizes the theory of business financial system, sketches the principle of flexible budget and its preparing methods. The second chapter explores the influencing factors of the financing ways, financing manners, financing cost and financing structure, and utilizing the theory of flexible budget to analyze their flexibilities. The third chapter illuminates the influencing factors of investment cost and investment operation respectively, and in the same time, explains how to enhance their flexibilities by preparing their flexible budgets. The fourth part illustrates the influencing factors of cash-holding volume, stock, current liabilities and studies on their flexibilities combined with the theory of flexible budget. The last part explains the influencing factors of revenue and profit appropriation after taxation, and analyses their flexibilities.The paper holds that the enterprises can improve their integral effects and economic effects of financial system by utilizing flexible budgets to prepare the financing plans, investment plans, active capital plans and profit appropriation plans based on the uncertainties around the business financial system, it will be helpful to the efficiency and benefit of the financial decisions. And last but not all, it can be beneficial to the management to heighten the flexibility of business financial system. Amidst of this paper, the author has raised many his own opinions, for example, combining the flexible cost-analysis model with the random-analysis model to analyze the cash-own cost; cataloging the flexible places of profit appropriation; exploring the flexibility of price on the base of commodity-value theory and market-form theory.