The current situation and countermeasures of the lack of liquidity in modern enterprises Abstract: Capital is the foundation of the survival and development of enterprises, the soul of enterprises, and the necessary condition for enterprises to realize self-financing and participate in market competition. Liquidity, in particular, is the economic lifeline of enterprises, and insufficient liquidity will affect the normal operation of enterprises. Based on reality, this paper studies and analyzes the current situation of the shortage of liquidity in modern enterprises, and puts forward some countermeasures to improve the shortage of liquidity in enterprises.

Keywords: insufficient liquidity; Current situation; Countermeasures

China Library Classification Number: F27 Document Identification Number: A

The management process of an enterprise is also a process in which the flow and form of funds are constantly changing. The existence of capital is significant. With a certain amount of capital, enterprises can start to operate as initial capital. After normal operation, the environment faced by enterprises is ever-changing, and various reasons will lead to a backlog of funds in a certain link, resulting in a shortage of funds. Therefore, if an enterprise wants to successfully realize capital turnover, it must have enough funds, especially working capital, and must inject some working capital when necessary. This paper expounds the definition, characteristics and importance of liquidity to enterprises.

I. Overview of liquidity

Working capital refers to the working capital necessary for purchasing raw materials, fuel and paying wages and other operating expenses for normal production and operation after the project is put into production. Due to strong liquidity, working capital has become the basis of daily production and business activities of enterprises. It is very important for enterprises to hold a certain amount of liquidity, and because of their relatively weak profitability, enterprises need to weigh the risks and benefits and control the liquidity within a certain reasonable range, which is neither sufficient nor redundant.

(A) the characteristics of liquidity. Working capital is the capital occupied by enterprises in the process of production and operation, which has the characteristics of short turnover cycle, changeable forms, large fluctuation of working capital occupation, and the period of working capital is consistent with that of production and operation. Having more liquidity can reduce the financial risk of enterprises to some extent. Through the management of cash, accounts receivable, inventory and other major liquidity items, we can not only save the rational use of liquidity, but also accelerate the turnover of liquidity, improve the efficiency of use and reduce risks.

The importance of liquidity. Capital is the foundation of enterprise's survival and development, and liquidity is the blood of enterprise, which is the necessary condition for enterprise to realize self-financing and participate in market competition. Enterprise management takes financial management as the center, and financial management takes fund management as the center. Enterprises should not only be able to raise funds reasonably, but also be able to use them reasonably. Improve the efficiency of capital use through various financial management measures to ensure the orderly circulation of funds. The shortage of funds is a common problem in enterprises, especially in small and medium-sized enterprises. How to get rid of the predicament of capital shortage, use funds more effectively and ensure the normal business activities of enterprises? Let's briefly talk about the reasons and countermeasures of liquidity shortage in small and medium-sized enterprises.

Second, the current situation of insufficient liquidity of modern enterprises

Many small and medium-sized enterprises in China are in trouble because of the shortage of funds, and enterprises stop production or even go bankrupt. The lack of liquidity has become a problem that restricts the development of small and medium-sized enterprises. There are many reasons for the shortage of funds for SMEs, including macroeconomic factors and enterprise management system.

(A) lack of funds after the establishment of the new enterprise. Small and medium-sized enterprises invest less. When they build, they must buy a certain amount of fixed assets, such as equipment, factories and other infrastructure. Fixed assets alone occupy a lot of funds of enterprises. When they are put into production, the purchase of raw materials, auxiliary materials and fuel needed by the enterprise requires a lot of liquidity, as well as operating expenses and workers' wages incurred in the operation of the enterprise. At this time, the remaining liquidity of the enterprise is running out. Due to the lack of liquidity after production, it is difficult for enterprises to expand the production of marketable products. Once an enterprise is unable to expand the liquidity necessary for production, it will lead to insufficient liquidity.

(B) Enterprises to expand the scale of production occupy a lot of liquidity. If an enterprise wants to expand its production scale, it will occupy a lot of money. The decrease of liquidity slows down the capital turnover of enterprises. Once there is a market judgment error, the competitiveness of products declines, products can't be sold, and inventory is overstocked, which makes enterprises form a vicious circle. Due to lack of liquidity, the enterprise may be on the verge of bankruptcy.

(3) Poor management of enterprises causes financial losses. Managers' management means and methods are backward, and there is a lack of clear division of responsibilities within the enterprise. The simplification of management mode makes many loopholes in the management of enterprises, and some people use such loopholes to make profits for themselves, resulting in business losses; Top managers are short-sighted and lack the analysis of the market prospect of the products they invest in and the research of investment decision-making; The top managers of some enterprises like to take risks and invest in high-risk businesses. Once poor management causes economic losses, the opportunity cost of enterprise working capital increases and production funds are squeezed out.

(D) The improvement of the social security system and the implementation of credit sales have increased the burden on enterprises. The gradual establishment and improvement of social security system, especially the promulgation of new accounting standards and labor contract law, enable enterprises to handle social insurance for employees and solve their worries. However, enterprises have to pay certain social insurance for employees every month, which also increases the burden on enterprises. At the same time, the sales payment of many enterprises after selling products cannot be returned in time. As long as the sales are realized, the enterprise must pay the taxes and fees arising from the sales. In order to reduce inventory and maximize the amount of funds occupied by products, enterprises still have to sell products on credit. On the one hand, selling products on credit reduces inventory, speeds up capital turnover, and reduces some expenses incurred when products are in inventory. On the other hand, with the expansion of credit sales of enterprises, the more taxes and fees paid for the other party, the more serious the shortage of working capital of enterprises.

Third, the countermeasures to solve the problem of insufficient liquidity of enterprises

In the process of adapting to the development of market economy, enterprises must constantly overcome and solve the difficulties they face in order to survive and develop. The current situation of insufficient liquidity of enterprises can be solved by the following measures:

(1) Adjust the asset structure reasonably. Asset structure refers to the proportion of various assets in enterprise investment, mainly referring to the proportion of fixed investment, securities investment and liquidity. At present, there is a general problem of insufficient liquidity in commercial enterprises. One of the most important reasons is that the ratio of fixed capital to liquidity investment has not been properly handled. From the perspective of profitability, based on the difference of profitability between current assets and fixed assets, if the net working capital (current assets-current liabilities) of an enterprise is less, it means that the enterprise has a larger share of funds for fixed assets with higher profitability, thus improving the overall profitability; However, from the risk point of view, the less working capital an enterprise has, the smaller the difference between current assets and current liabilities, and the greater the risk of insolvency at maturity. In practical work, if you invest too much money in fixed assets in the early stage, it is very likely to lead to tight liquidity, inability to purchase goods, arrears of employees' wages, and decline in short-term solvency. The focus of asset structure management is to determine a liquidity level that can not only maintain the normal business activities of enterprises, but also bring more profits to enterprises without increasing risks. The development of new enterprises should not only consider the fixed investment in the early stage, but also pay attention to the adequacy of liquidity.

(2) Strengthen cash management. The so-called cash refers to bank deposits, cash on hand and other bank deposits. In addition to meeting the needs of daily production and business activities, the company also needs to maintain a certain cash balance to deal with emergencies. Due to the rapid changes in market conditions and the existence of various other uncertain factors, in the event of unexpected events such as economic fluctuations, commercial disputes and sudden payment of expenses, the cash inflow of the company will decline, which will have a very adverse impact on the normal business order of the company. When the price fluctuates, the market interest rate changes or the stock market changes, if the company holds more cash balance, it can seize the fleeting market opportunity and obtain greater profits through securities or physical transactions. Control the payment on a reasonable and legal basis, so as to speed up the cash turnover, improve the efficiency of cash use and make it play its greatest role. Under the condition of not affecting reputation, delay the payment period of payable as much as possible, and pay by draft, so that the company can legally delay payment by using the acceptance and processing procedures of draft.

(3) Strengthen the management of accounts receivable. Under the condition of market economy, fair and fierce market competition, credit sales has become a means for enterprises to expand sales, and credit sales is an important means of promotion, which is of great significance for enterprises to sell products, develop and occupy the market. While selling products, the company provides sellers with funds that can be used for free within a certain period of time, which is very attractive to sellers and constantly pushes products to the market. However, we should pay attention to speeding up the collection of accounts receivable while giving full play to the functions of accounts receivable. Accounts receivable generated by the company in order to expand sales means that the company cannot recover the payment in time and has to pay a certain amount for its customers. The more accounts receivable, the more money paid to customers, and the higher the price paid. Therefore, the opportunity cost, management cost and bad debt cost of accounts receivable should be reduced as much as possible. Adjust the enterprise's credit policy through aging analysis, and strive to improve the collection efficiency of accounts receivable.

(4) Strengthen inventory management. In order to effectively manage working capital, enterprises must strictly manage inventory, thus reducing procurement costs. (1) Strengthen inventory management. A large part of the working capital of small and medium-sized enterprises is occupied by inventory. Optimize the inventory structure, promote zero inventory of consumable materials, reduce the procurement cost of raw materials, shorten the cycle, establish an open bidding procurement system, strictly control the procurement cost, reduce the inventory to a reasonable inventory, reduce the inventory occupation, and accelerate the turnover of working capital. Inventory management is an important work of enterprises. Inventory backlog will occupy a lot of money; Insufficient inventory may lose existing and potential sales opportunities. ABC classification management method or timely inventory management mode can be used to strengthen inventory management. The most important thing in actual management is to maintain reasonable inventory and determine reorder points. (2) Reduce procurement costs. With the development of commodity circulation, price is no longer the main means of competition. If a relatively stable relationship is established with the manufacturer, the supply price will remain basically stable, and the distance between the merchant and the manufacturer is getting closer and closer. Manufacturers supply points all over the country, and timely exchange of goods becomes a reality. Therefore, modern inventory management includes inventory control in the traditional sense, determination of reorder point and modern replenishment system with the help of network technology. In the practical work of inventory management, it is more important to determine the reorder point. When determining the reorder point, daily sales volume, delivery date, insurance period and other factors must be considered. Because of the great richness of goods, they can basically arrive at one time, so there is no need to consider the situation of arriving one after another.

(5) Improve the internal control system. Internal control system refers to the policies and measures formulated and implemented by enterprises to ensure the effective conduct of business activities and the safety and integrity of property and materials, to prevent, detect and correct errors and frauds, and to ensure the truthfulness, legality and integrity of accounting materials and other related materials. At present, many small and medium-sized enterprises do not attach importance to accounting work, and accounting information is seriously distorted. Some enterprise leaders also serve as accountants, and some enterprise accountants also serve as cashiers or material custodians, which makes the property management of enterprises seriously out of control. Accountants use their power to embezzle public funds, and many enterprises employ acquaintances as accountants. Their professional quality is not high, so they can't handle the whole accounts independently and provide real accounting information. Therefore, enterprise managers should improve their management level and rational decision-making ability, especially improve the financial system, raise their awareness of preventing market risks, and closely link enterprise micro-management with macroeconomic policies.

(six) to strengthen investment management, improve the efficiency of capital use. With the intensification of market competition and the pursuit of profits by enterprises, the investment activities of small and medium-sized enterprises are more frequent. Market economy is a competitive economy, and the law of competition is survival of the fittest. The risk of investment requires small and medium-sized enterprises to pay attention to the study of risk when managing money. The risk of a single asset can be measured according to probability distribution, standard deviation and standard deviation rate. The most critical factor that determines portfolio risk is not the total risk of each asset, but its actual contribution to the whole portfolio risk. Portfolio risk includes system risk and non-system risk. System risk is inevitable, but non-system risk can be avoided. Companies should try their best to control and avoid risks, which requires enterprises to have new ideas, strengthen investment decision-making research, and ensure rapid and efficient capital turnover.

To sum up, the liquidity of enterprises is very important to the survival of enterprises. By strengthening the management of cash, accounts receivable and inventory, strengthening the management of internal control system of enterprise funds, and strengthening the correct prediction and decision-making of managers, the enterprise can have enough liquidity to operate normally, bring more economic benefits to the enterprise, make the maximum use of enterprise funds, and pave the way for the future development of the enterprise.

See literature. . . . . .