On Optimizing Cash Flow Management Of Real Estate Development Enterprises

The company’s cash flow is the blood of the enterprise, is a necessary condition for the enterprises to survive. The goal of an enterprise is the pursuit of high returns, in real life,there are some enterprises the profit in the income statement is quite substantial, but because of unable to repay maturing debt as a result of the forced bankruptcy liquidation ending, this is the enterprise did not do a good job in the cash flow management. The success of a cash flow management scheme can not only give the comprehensive financial index of enterprises such as: to provide the reference for the operation status, profitability, development ability, but also to the enterprise managers have management provides accurate, comprehensive financial information. According to the change of the company’s cash flow to the enterprise managers can bring a lot of useful information, external information users can be judged on the basis of its development in the enterprise internal management, accordingto the cash flow situation of the development of business investment plans or judgment of enterprise etc.. Cash flow management has an important role in the practical application, the first cash flow index can reflect the enterprise management status, enterprise real benefit. Even a lot of scholars believe that the relevant indicators of the cash flow is more important than the traditional profit index. Compared with the other financial indicators of cash flow to repay debt ability more truly reflect the enterprise. In real life, often can see the profitability of many enterprises is good, profitable but could not escape the bankruptcy liquidation of the results. This is due to the enterprise cash flow situation, although a considerable income, but most of the revenue is debt, cash flow is low, cash payment ability is poor, cannot repay the debt maturity lead to bankruptcy. Finally, a comparative analysis between cash flow management to increase enterprise and the rest of the industry, the enterprise’s cash flow is based on the cash basis of accounting system, so there is no difference. Therefore, the cash flow of the enterprise information can be more intuitive understanding of the ability to adapt to the enterprise to the market manager.This paper on China’s real estate industry as a whole the cash flow status and characteristics of management are analyzed, including the demand for capital, capital recovery period is long,difficult financing, financing of higher risk, according to the current situation of China’s real estate analysis the cause of its existence, the policy intervention in the country LED sourcesthe funds depends on the ex post analysis of single, lack of planning. Secondly, combined with the status quo of China’s real estate industry and the existing problems, this paper puts forward how to prepare the cash flow management, the first to attach great importance to the management of cash flow, second to broaden the financing channels, to prepare the cash flowbudget in early third, fourth to the cash flow will be combined with the strategic development ofen terprise management and so on. Finally, this paper combined with the status of cash flow management of M company, the M company’s cash flow management has carried on the comparative analysis, analysis of the problem highlights analysis, etc., further optimization of M company’s cash flow management mechanism. In this paper, the biggest bright spot is thecombination of the actual, found that cash flow of funds in real life too scattered, to solve this problem, the suggestions and opinions I give.