| The real estate industry plays an important role in promoting the prosperity and developmentof China’s economy stage, while it’s healthy or not often related to the development of a country’sability to stabilize financial markets. Real estate companies generally have a higher profit.However, at present, the increasing complexity of domestic and international economicdevelopments,25of the country following the2013enactment, in2014a new property tax andpersonal income tax for the introduction of listing the implementation details of the nationalefforts to control prices continue to increase, resulting in Real estate companies are alsoincreasingly fierce competition between each other, because of poor management and the costcaused by excessive backlog funding strand breaks or real estate phenomenon is not uncommon.How to brutal market competition, is an urgent problem placed in front of every real estatedeveloper.Internal control is an enterprise of self-restraint behavior, but also an important modernenterprise management mode, the internal control of all economic and commercial activitiesindispensable part, as long as it comes to economic activities and business activities, we muststrengthen internal controls. Strategic management of modern enterprises, based on nationalcircumstances and requirements of their own situation, the main line to value management, theestablishment in order to reduce costs, reduce risk, strategy development, improve the level ofcorporate governance and other internal control system aimed to achieve internal control processesand enterprise development has been rapid synchronization upgrade.Strengthen internal control of real estate, real estate companies to help protect the legitimate rights and interests of investors, real estate enterprises to seek the basic requirements of their owndevelopment, but also to ensure the healthy operation of the real estate business imperative.Conscientiously sum up experiences and lessons of their predecessors, and actively explore newdevelopment model and development concept, extensive management changes in corporatebusiness model is essentially to ensure rapid development of enterprises, not only to improve theinternal control system, but also to improve the real estate business corporate governancestructure, which for the prosperity and development of China’s economy, the capital markets andthe effective operation of a well-functioning government’s macro-control policies, also has veryimportant significance.This paper summarizes previous experience, broadly defined and narrow definition ofinternal controls for making your own understanding, combined with the particularity of the realestate business and real estate financial risk characteristics, and the status quo of China’s realestate enterprises of internal control, made some corrections recommendations. Real estatebusiness management both general business some of the features, but there are some of the specialnature of their operations. The particularity not only in the ordinary course of business, but also indealing with financial accounting. The real estate business, in the business, a huge amount ofinvestment, long period, involving government departments, long production cycle; in thefinancial deal, costing complex definition and measurement of income is not clear enough. Theparticularity of the real estate business is bound to have some impact on its internal controls.China’s real estate business problems in internal control are: leadership is not enough emphasis oninternal controls, lack of relevant organizational structure, professional ethics and quality offinancial staff is not able to fully meet internal needs, in addition, weak internal and external oversight.To solve these problems, we propose recommendations. First, risk assessment, SWOTanalysis to establish the real estate business. Comprehensive SWOT analysis can help real estatecompanies more comprehensive risk assessment to select the most beneficial company’s internalcontrol decisions. Second, improve the investment decisions. Under the current complicatedinternational and domestic economic environment, real estate investment is profitable are stillunknown. In the continuous implementation of national policies to regulate today, the future of thereal estate industry will go from here is not very clear. However, some real estate companies basedon old experience is still invested large sums of money, the pursuit of asset growth, at the expenseof excessive debt, contempt capital returns, valued only short-term gains, without attention to thesustainable development of enterprises. In this case, the real estate business investment decisionsmust be made is not enough scientific and reasonable. Corporate capital assets in order to ensuresafety and improve operating efficiency and profitability, we should as much as possible to avoidwrong decisions. Again, good budgetary control. Strengthen the capital structure management andworking capital management. Improve the overall quality of staff. Finally, a real estate enterpriseinformation management systems. Information technology is an important part of the futuredevelopment of the real estate industry. Every real estate enterprises should use computers and avariety of advanced network technologies, and establish the company’s information managementsystems, from collection to storage, to processing, as well as all aspects of output and use shouldbe closely watched to ensure that information materials complete, accurate, timely, authoritativeand easy to use, to meet the information needs of the enterprise. Enterprises from theirenvironment constantly collect information on all aspects, the development of management information systems theory and technology to provide the necessary support for internal control, ithas to include information collection, analysis, dissemination, storage, and further informationneeds determination of other links. Not fully effective information resources, corporate movementlost direction of other resources, internal control is out of the question, it is no longer needed. |
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