On The Causes And Countermeasures Of Current Fund Shortage

On the surface, the tight funds of enterprises are caused by rising costs, delinquent payments or unsalable products.

However, further analysis will not be difficult to find the reasons leading to the shortage of funds.

These include the factors of policy and market change, including the lack of effective capital management mechanism.

First of all, this paper briefly analyzes the reasons for the shortage of funds at present, and then focuses on how to avoid and overcome the shortage of funds by strengthening the management of internal funds.

The reasons for the shortage of funds at present are analyzed.

The 1. national financial tightening policy has led to tight corporate funding.

In July 1993, the state command bank withdrew loans in a limited time and took away a large number of enterprise liquidity, resulting in financial shortage for many enterprises.

The state's tightening policy is mainly aimed at overheating behavior such as fried steel products, speculation stocks, real estate speculation and so on. Unfortunately, banks and other financial institutions are also involved.

Once these frying activities are not followed up, their investment will be hard to recover.

The implementation of the national austerity policy is resolute. As a result, the operating capital and current funds of enterprises are used to return to the capital loan in a certain extent, resulting in the shortage of funds for the production and operation of enterprises.

Moreover, the practice of withdrawing loans within a limited time is inconsistent with the continuity and proportionality of all aspects of the production and operation of enterprises.

2., the supply and demand of the market fluctuated too much, and some of the funds were wasted and precipitated.

At present, the production and investment activities of enterprises are mainly regulated by economic levers such as price.

If the price of the product rises, the enterprise increases production, if the product price falls, then the enterprise reduces production.

However, because of the frequent changes in product prices and the fierce competition between supply and demand, the price fluctuation has been over magnified, resulting in the ups and downs of product supply and demand. On the one hand, products are short and prices are rising. On the other hand, production is surplus and products are stagnant.

Such as the price and supply and demand changes of products such as steel and oil in China in 1993 and 1994.

When the product is in short supply, the enterprises feel the shortage of funds due to the expansion of production. When the product is unmarketable, the enterprises feel the funds are tight due to the fact that the goods are not paid back. As a result, the enterprises feel the financial strain is long, and the tension is temporary or short-term.

Moreover, product prices and supply and demand information are pmitted very fast, but enterprises need a certain time to adjust their products and scale of production. This makes the funds that have not kept pace with the market changes precipitate or waste in excess of products, excess production capacity or high price purchase of raw materials, thereby reducing effective liquidity and increasing financial stress.

Of course, enterprises can overcome the financial strain caused by market changes by strengthening management and establishing effective competition mechanism. For example, if enterprises do so, the shortage of funds will be reduced.

However, if an enterprise fails to pay, the payment capacity of the related enterprises will also be affected, resulting in the mutual delinquency between enterprises, causing financial strain.

In addition to the above two aspects, tax reform, bank commercialization and exchange rate merger have also aggravated the tight financial situation to some extent.

(two) internal factors of enterprises lead to tight funds.

The financial position of enterprises is mainly determined by the economic behavior of enterprises.

The economic behavior of enterprises is mainly controlled by the management mechanism of enterprises, such as the market research and sales mechanism of enterprises, the adaptability of enterprises, the self-restraint and development mechanism of enterprises, and the decision-making mechanism of enterprises.

From the perspective of enterprises, enterprises should establish effective mechanisms to adapt to changes in external environment, overcome their own weaknesses and carry forward their own advantages.

Enterprise management mechanism is not good, can not adapt to market changes, is the main reason for enterprises to get into tight funds.

In the operation mechanism of enterprises, the most important thing is the fund management mechanism.

Because all kinds of economic activities of enterprises will eventually be realized through the flow of capital.

Through the flow of funds, enterprises can supervise and control the production and operation activities of enterprises in a timely and effective manner.

Therefore, the establishment of effective monitoring mechanism for enterprise funds is the key to ensure the smooth operation of production and business activities without financial strain.

However, after the implementation of the new accounting system, the effective management mechanism of enterprise funds has not been formed.

The new system abolished the management principles of fund earmarking, block management and proper balance of funds. On the one hand, the enterprise had the ability to use a large amount of funds, while the other side increased the possibility of enterprises being in trouble because of failure in decision-making or failure in operation.

Enterprises have the right to make use of funds, and enterprises can make short-term investments for long-term investment, and use depreciation and technological pformation funds to expand their operation scale. This really improves the ability of enterprises to adapt to market changes, and makes enterprises adjust their production and business activities more vigorously. However, the opportunities for capital shortage due to business decision making errors also increase.

This requires enterprises to raise their management level and skills accordingly.

But in fact, after the implementation of the new accounting system, most enterprises relaxed their capital management, especially the capital balance management.

The result is that only when the enterprises have difficulty in payment and tight funds, can they make clear the decision making mistakes and improper use of funds of the original enterprises, but at this time, the enterprises are in a difficult position to extricate themselves.

From the angle of enterprises, the current debt balance and tight funds have not been established since the former capital balance analysis method was abolished.

Next, we will focus on how to avoid financial strain by establishing an effective enterprise capital monitoring system.

Two, set up a fund monitoring index system to overcome the shortage of funds. (1) by monitoring the cash payment capability index, we can monitor whether the short-term payment funds are tight.

The lack of liquidity and lack of cash are the main reasons for the shortage of funds.

Therefore, the cash payment ability of enterprises is the most basic and most commonly used index to monitor the financial shortage of enterprises.

The cash payment ability of an enterprise is usually determined by calculating cash receipts and cash outlays in the short term.

That is: the cash payment ability of the company is (= money plus + short term realizable investment + short term recoverable note) - (short term loan + short term notes payable). If the calculation result is positive, it shows that the enterprise has no funds to pay in the short term.

Usually in small and medium-sized enterprises, the general balance sheet is calculated with the corresponding values above.

But for large and medium-sized enterprises, according to the actual needs of their enterprises, we should determine the scope and time limit of the calculation, such as the above revenue and expenditure values in half a month or 10 days.

According to the characteristics of production operation and sales activities of enterprises, the enterprises should determine the scope of the reasonable cash payment ability that they should hold, and also determine the ratio of the payment ability of gold and the sales revenue, so as to check and judge whether the enterprises have the ability to pay cash in cash.

If the calculated value is higher than the reasonable value, the enterprise will not be able to pay funds in the short term.

But too high that enterprises have capital idle.

If the calculated value is below the standard value, there will be a shortage of funds.

If a company has insufficient cash payment capacity and tight funds during a certain period of operation, it is necessary to analyze and check the supply and demand of capital in the production and operation process of enterprises.

Two, by analyzing the demand index of operating capital, we analyze the supply and demand of capital in the production and operation process of enterprises.

The cash payment ability of enterprises is determined mainly by the production and operation of enterprises.

The index reflecting the capital supply and demand of enterprises in the production and operation process is the index of operation capital demand.

The demand for operating capital refers to the demand for capital in the course of production and operation and the difference between the production and operation process and the supply of funds.

The demand for capital in the production and operation process of an enterprise includes accounts receivable, prepayment, prepaid expenses, inventory, etc. the supply of funds to the enterprise in the production and operation process includes accounts payable, pre collection, payable taxes, other payment and prepaid expenses.

When calculating, we should pay attention to all items that are not included in the cash flow capacity of current assets and current liabilities items.

The demand for operating capital is (= accounts receivable + prepayment + prepaid expenses + inventory) - (accounts payable + pre Collection + tax payable + other payment + prepaid expenses). This means that the demand for operating capital refers to the demand for capital in the capital occupation projects such as inventory and accounts receivable in the course of production and operation, and the production and operation funds that are needed by the enterprises themselves are insufficient after the capital supply projects such as payment and pre payment, which are formed in the course of production and operation, are met.

Under normal circumstances, production and operation activities need to advance production capital first and then recover money through sales, so the demand for business capital is positive.

However, it is also common for commercial enterprises to settle accounts after some intermediaries or first take delivery.

These enterprises usually do not need advance payment for normal production and operation activities.

Most other enterprises have positive demand for operating capital.

According to the characteristics of its production and operation, enterprises should determine the reasonable value of operating capital demand indicators or determine the reasonable ratio of sales revenue, which is the basis for checking and monitoring whether the funds in the production and operation process of enterprises are scarce.

If the demand for operating capital is lower than the reasonable value, it shows that there is no financial difficulty in the production and operation process of the enterprise, and the fund is basically balanced.

If it is higher than the reasonable value, it shows that enterprises have new capital requirements, and need to increase operating capital or take measures to reduce capital occupation, otherwise there will be financial strain or payment difficulties.

We need to find out why the enterprise's operating capital demand is higher than the reasonable value. Is it a bad inventory management of enterprises or is it not timely for enterprises to recover their accounts?

Is it a normal condition for the expansion of business scale, or an abnormal phenomenon of poor product sales and overstock?

Through analysis, it is necessary to determine whether an enterprise needs to increase operating capital (operating capital), i.e., to raise long-term sources of funds.

In order to solve the problem of capital shortage or capital inactivity, the company calculates the operating capital index to determine whether the enterprise needs to raise funds or invest in three.

The operating capital index reflects the balance between the long-term source of funds and the long-term capital occupation.

Long term capital sources include long term liabilities, capital, provident fund and unrealized profits of enterprises. The long-term capital occupation of a company includes long term investment, fixed assets, intangible assets and deferred assets. The calculation formula of operating capital index is: the operating capital of the company is: (long term investment + fixed assets + intangible assets and deferred assets + other long term assets) - (long term liabilities plus owner's equity). If the calculation result is negative, it shows that the long-term source of funds and occupation imbalance of enterprises, and the long-term capital demand of enterprises is not guaranteed by long-term funds. The gap will inevitably come from the production and operation activities of enterprises.

Under normal circumstances, the operation capital of an enterprise should be positive.

That is to say, the long-term source of funds of enterprises is to ensure that they meet the operational capital needs of enterprises in the production and operation process, and also satisfy the long-term capital occupation, that is, the operation funds are positive and maintain a certain level, so as to ensure that enterprises have no funds to pay difficulties.

How much is the operating capital of a company? It depends on the value of the operating capital of an enterprise.

The operating capital is at least greater than the operational capital requirement of the enterprise, and the enterprise can have the ability to pay cash.

If the amount of operating capital of an enterprise can not meet the needs of capital production and operation activities, the performance of enterprises' cash payment ability is negative.

The operation capital of the company can not meet the demand for capital in the production and operation activities of the enterprise. We must find out the reason: whether it is excessive funds in the long term or the shortage of funds from long-term sources.

If the long-term source of funds is insufficient, enterprises need to raise funds.

In general, enterprises often suffer too much capital because of excessive funds.

Long term capital occupation of enterprises, if there is not enough profit or other long-term funds can be used to ensure that the production and operation activities of enterprises funds are tight.

If the business capital exceeds the operating capital demand, it means that a large number of enterprises are idle and need to open up new investment channels.

Under the new system, the analysis of the balance between supply and demand of capital is mainly carried out through three indexes: operation capital, operation capital demand and cash payment capability.

It can be seen that after the implementation of the new accounting system, it is not necessary to analyze the balance of funds but to analyze and control the balance of funds.

If the enterprise itself does not establish effective capital