Construction Of Cash Flow Management System Of Dart Company

Cash flow is the foundation of a company’s sustainability.It has a crucial impact on the scale of production and operation.Implementing first and collecting cash later is a common practice of project companies.As the industry competition intensifies,the gross margin of project companies are getting lower and lower.How to strengthen the cash collection,control project costs,optimize cash flow management processes,and hence reduce business risk,is the main purpose of this paper.This paper takes the cash flow management of Dart Company as a case study.Firstly,it presents the cash flow characteristics of project companies.Then it illustrates the current practice of Dart Company’s cash flow management,and analyzes the problems existing in Dart Company’s cash flow management.Lastly,based on these problems and industry characteristics,it proposes a cash flow management process integrating the aspects of cash flow management,budget management and risk management.In the daily operations,the process focuses on optimizing the financing methods,payment and bidding methods for various functional departments.In the project investment,it focuses on optimizing the process of project payment,material procurement and construction cost payment.Through KPI and cash flow monitoring,it also comprehensively strengthens the budget management and risk management,and improves financial pre-warning mechanism.Lastly,it integrates the cash flow management with budget monitoring,and uses financial KPIs to evaluate the effectiveness of the process.The design framework and implementation process of Dart Company’s cash flow management process have certain universality for small project companies.We hope it could provide some similarity and be helpful to the cash flow management of our peer companies.