Analysis on Financial Management of Construction Enterprises
Abstract: With the continuous development of China's economy, people's material living standards are constantly improving. In the development of market economy, it plays a more and more important role in construction enterprises, and its requirements are getting higher and higher. At present, the construction industry should become an important industry in China and occupy an important position in the national economy. Because the construction industry has the characteristics of long production cycle, large liquidity and wide coverage, its financial work is very different from other enterprises, and the financial risks in fund raising, product price formation, project payment and cost budget are more complicated. Therefore, it is particularly important to strengthen the financial management of construction enterprises. This paper mainly analyzes the problems existing in the financial management of construction enterprises, and puts forward solutions to these problems, so as to bring better help to the development of construction industry.
Keywords: construction enterprises; Financial management; Problems; Solution measures
At present, the competition in China's construction market is becoming more and more fierce, and the management requirements for construction enterprises are getting higher and higher. Coupled with the increasing national awareness and the pursuit of a more comfortable life experience, foreign construction enterprises have gradually entered China. Foreign construction enterprises generally have the advantages of advanced construction management level and strong cost control ability, which has caused great impact on China's construction industry and brought more and more pressure to China's construction industry. How can we survive in the increasingly fierce competition in the construction industry? Can grow up in the fierce construction industry? This requires the construction industry to reflect on itself. The only way now is to strengthen the management of construction enterprises, improve the financial management of enterprises, strengthen the internal control system and so on, so as to minimize the management cost and maximize the competitiveness of enterprises. As an important part of enterprise management, it is more and more important to strengthen financial management.
1. Problems in financial management of construction enterprises
1. 1 The quality of financial managers needs to be improved.
As an important department in the construction industry, the finance department has higher and higher requirements for financial managers. However, at present, the quality of financial managers is low, lacking innovative spirit and ability, which leads to the backwardness of enterprise management concept.
1.2 Lack of supervision in financial management
The lack of supervision of financial management in general enterprises is mainly manifested in nonstandard accounting, mainly because accounting is subjective and arbitrary; Insufficient internal accounting supervision and imperfect internal structure; External supervision is more casual, the external supervision of construction enterprises is subjective than objective, and most supervision departments only serve their own interests.
1.3 weak financial control
Weak inventory management, resulting in sluggish funds; The control of accounts receivable is not strict, it is difficult to recover funds, and there is no strict credit sales policy; Cash management is backward. Some enterprises think that the more cash, the better, resulting in idle funds. Some enterprises do not have a plan for the use of funds, which leads to financial difficulties.
2. Effective measures to strengthen enterprise financial management
2. 1 Update the concept of financial management
This requires the building management department to pay attention to the importance of financial management, strengthen financial management and establish a financial management system before, during and after the project. Constantly update the concept of financial management, in order to achieve scientific and legal financial management. We should also base ourselves on our own advantages, fully tap our own advantages, use modern technology, change the traditional business process and operation mode, improve the financial management level of enterprises, and lay a good foundation for enterprises to improve their competitiveness.
2.2 Strengthen the quality of financial management personnel
In enterprise financial management, we must first strengthen the basic quality of financial managers. Financial personnel should not only be proficient in business knowledge, but also regularly go deep into the construction site, master first-hand information, understand the construction process, make cost accounting more real, and help the financial work of enterprises.
2.3 Strengthen enterprise budget management
The construction financial control of construction enterprises mainly lies in internal audit and annual financial plan and budget. The smooth development of an enterprise requires the person in charge of finance to budget and arrange the financial work timely and accurately. It is necessary to do a good job in budgeting; (1) Revitalize the stock, optimize the increment, guide the limited resources to the advantageous enterprises, keep the loss-making enterprises and projects controllable and productive units, pay attention to project cost control and expenses. (2) Maintain the seriousness of the budget, make overall arrangements for the expenditure of funds, and set annual targets according to the determined overall profit target.
2.4 Strengthen project management and control costs.
First of all, strengthen the infrastructure of project managers and bring them into the enterprise management system. The project manager should strictly review the project design and technical scheme to avoid quality and safety accidents; To strengthen the management of project funds, the project department should formulate a fund use plan and strictly examine and approve the system; Strengthen project cost management, etc. As a construction enterprise, it is necessary to manage the target cost, deduct taxes and profit target from the bid price, and finally determine the target cost. The project management department shall prepare the construction drawing budget and construction budget in time. We should also pay attention to the settlement management of engineering projects and realize cost control.
2.5 comprehensive use of a variety of management methods
First of all, it is necessary to strengthen the internal financial management system of enterprises, including fund management system, asset management system, cost management system, income and profit distribution management system, financial analysis and assessment system, etc. Only by strengthening the management system can management proceed smoothly; Strengthen internal control of enterprises. In order to survive, develop and gain profits, construction enterprises must strengthen internal control of enterprises, use various rules and regulations to control and assess enterprise activities, pay attention to audit and analysis, reduce costs, and achieve the best economic benefits and management purposes; Strengthening enterprise tax, making reasonable tax planning and making correct decisions can make the operation and investment of enterprises more reasonable and legal, run healthily and orderly, and maximize economic benefits; Strengthen enterprise financial analysis, conduct scientific analysis, adjust and compress unreasonable funds according to the proportion of various funds, and reduce unreasonable capital utilization.
2.6 establish and improve the enterprise management system
Because the construction industry is not standardized, the bidding management is not completely standardized and legalized, and many unfair competitions still exist, which will bring certain management and operation risks to construction enterprises. In order to reduce the loss of management and operation risks, construction enterprises need to set up financial early warning indicators, select the standard values of early warning indicators, analyze and judge the degree of early warning, and prepare financial early warning analysis reports to prevent financial risks. The existence and characteristics of financial risks are different for different enterprises. According to the industry scale, operating conditions and financial risks faced by construction enterprises, the indicators of financial risks should focus on solvency and profitability, supplemented by business development capabilities, and highlight cash flow indicators.
2.7 Strictly control the contract.
For enterprise construction contracts, in order to prevent financial risks, it is very important to find the risks in the contract in time. In the construction contract, the contents of the contract are often supplemented or modified, which requires reasonable communication between the two parties to prevent risks.
label
Financial management is an important part of enterprise management, which requires construction enterprises to continuously strengthen the level of financial management. Financial managers should establish a correct concept of financial management, strengthen financial management system, strengthen project management and do a good job in cost control, so as to enhance the competitiveness of enterprises and improve their economic benefits.
refer to
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[3] Dong Ligang. Study on the Countermeasures of Financial Risk Management in Construction Enterprises [J]. Guide to Economic Research, 20 10, (23).
[4] Zeng Jianru. Analysis of financial management and cost control of small and medium-sized construction enterprises [J]. Enterprise Technology Development, 2007, (5).
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