Study On Cost Control Of Real Estate Company A

China’s real estate industry is becoming mature, and its relevant laws andregulations have been improved gradually, we are closing to the internationalstandard in real estate management mode. With the release of policies of house pricerestriction, and rising of goods price, we can see a significant increase in the cost of aproject development, then real estate profit margin is gradually reduced. Small andmedium-sized real estate enterprises are facing much more difficulties in fundingconstraints, narrow profit and increasing financial risk. It is becoming hard to move ina strong competitive market. Our mature real estate developers such as Vanke, PolyReal Estate can get stable income due to their perfect cost control system. The levelof cost control has a direct impact on the survival and development of the real estatebusiness.Company A, as small and medium-sized real estate developer, comparedwith the mature real estate enterprises,is obviously at a competitive disadvantage inthe funds, management experience. Cost control is essential for the survival anddevelopment of small and medium-sized real estate enterprises.This article is trying to start from the analysis of the present cost control of thecompany A, to know overall development level in cost control and to finddeficiencies and omissions. By reading relevant articles domestic and abroad, I havelearned some basic advanced ideas of real estate cost control. I think we can learn anddraw lessons from some mature international real estate companies in systemconstruction, organizational management, process control, and accounting methods. This article introduces the natural condition and the current situation of costcontrol of Real Estate Company A, found the deficiencies and causes from costcontrol system, cost control management, cost control process, and cost controlaccounting methods in company A, and put forward the corresponding suggestionsand solutions.On the system guarantee of effective cost control, include to perfectcost control system, to make clear responsibility, strengthen the budget constraints,and improve the internal control mechanism. Strengthen the system constructioncontinuously in order to lay a solid foundation in cost control system and advancesteadily.Organizational settings and the post assignment ensure the smoothimplementation of cost control system, including rational allocation of humanresources, optimize personnel structure, to play a professional advantage, arouseemployee potential, arouse the enthusiasm of the staff.Cost control should not stay incontrolling engineering cost expenditure, strengthen the organization andmanagement should not be ignored, and should incline to performance assessment ofcost control energetically in salary and incentive mechanism aspect.Adding feasibilityargumentation, strategic development planning and research in the process of costcontrol may contribute to control the project risk and reduce the unnecessaryexpenditure and loss.Reinforcing supervision and coordination between departmentsand ensuring that the business process is smooth and tight. The improvements ofaccounting subjects can make the accounting of cost control much more scientific, infavor of detailed management. Application of dynamic cost control in accounting canhelp manager to better grasp the cost expenditure in time,and correct dynamic costpromptly, and add the variety factors of target cost in the dynamic cost control.Supplementary accounting archives is convenient for counting and analyzing date in amultiple calibers of historical data, and in favor of collecting and summarizing the same property cost scientificly and efficiently.Cost control in small andmedium-sized real estate enterprises should be enhanced, I hope this article will bereferable in cost control of company A,improving the level of cost control to earnsustained profit.