Study Of Cash Flow Management For JHD Company

Cash Management is crucial for Enterprises which are normal running. We can take Cash Management as the blood of Enterprises. As for construction industry,companies always meet with the issue of financial strain. Recently, government take control of the real estate industry, and it is harder to raise funds for construction companies. All factors lead to the fierce competition in the construction market.Construction enterprises are suffering horrible shock.Nowadays, lots of construction enterprises have cash flow difficulties. And the problem of cash flow is really destructive to these enterprises. Construction enterprises lack of capital to get new project started while they can not receive the project payment. Then the enterprises' account received will be more and more. It will make the difference between the accounting profits and cash profiles. The manager of company may focus more on accounting profits instead of cash profiles. Once the cash flow is broken, company will face bankruptcy at any time. So we can see that,optimizing cash flow management is vital to sustainable development of itself.To solve this issue, this paper takes the example of JHD Corporation. Using DSO Theory and Cash Gap Theory to analysis the cash flow of JHD Corporation which happened in recent three years. Finally, this paper will come up with reasonable suggestions depending on JHD Corporation's feature.This paper, by analysis, found that problems of JHD Corporation are as follows:the organization structure of JHD is simple; bidding with no choice wastes lots of cash flow; Account receivable is larger and difficult to receive; difficult to raise funds;cash management is inefficient. Last but not the least, this paper come up with several respective suggestions,such as strengthen the awareness of cash flow management ,reasonable construction of accounts receivable management system and information platform, making good financing plan and enhancing financing capacity, developing a scientific and reasonable cash flow management system, and improving the organizational structure of the company.