The Theory And Application Study Of Total Cash Flow Management

As we all know, if an enterprise has no profit, it can also run well. But if no cash, it will be plunged into bankruptcy. To an enterprise, the function of cash flow is equivalent to the blood of the human body, and the circulation of cash is basic precondition of corporation's survival and key chain. The examples that cash crisis caused by bad management leads an enterprise into collapse immediately are out of count. Under the circumstance of market economy, the enterprise would exist and develop continuously if it has necessary cash. So the inevitable choosing of the enterprise is that strengthening cash flow management, improving financial liquidity and raising economic returns.The effects of cash flow management in an enterprise are known by more and more people. Because of modern enterprises'organization scale is huge and the levels of management are various, the well cash flow management need an enterprise's administrative action to be standard from each aspect, and only through this way the entire cash flow management could be consistant, integrated and effective. It needs to design a set of useful management pattern of cash flow management for the enterprise. In order to solve this problem, this article proposes the concept of total cash flow management as that an enterprise should be looked as a whole, put cash flow management on an important position, and all kinds of it's operations should be constructed around cash flow. Current or in the future, the information of cash flow will be forecasted and planned, executed and controlled, and the information will be transmitted also reported as well as be analyzed and appraised. The article also proposes the total cash flow management pattern, which mainly comprises three systems: organization system, operation system and supervision system. The concrete enterprise needs to pay more attention to the advanced management theory such as the system theory and the cybernetics when carrying on the total cash flow management. It is noteworthy that the cash flow management penetrates to management activities of the enterprise in every respect, so the enterprise when carrying on the total cash flow management, must take into account integrally and in the round.