Textile Enterprises: Capital Turnover To Effectively Tap Market Potential

Ineffective deposition of internal cash pool in Feng Zhu group

Experience: the global economic growth is weak, the pressure of Chinese enterprises to further increase, the problem of tight capital chain is increasingly prominent, and the fragmentation of capital chain threatens the survival of enterprises.

Therefore, enterprises need to have an in-depth understanding of cash budgeting, dynamic management, building cash pools within group companies, improving costs, and making reasonable use of idle funds, so as to manage the cash flow of enterprises well and prevent the breakup of capital chain so as to survive in the crisis.

Most of the enterprises are right now.

Lack of knowledge and relatively backward management methods.

It is mainly manifested in the following aspects:

First, the utilization rate of funds is not high.

Such a situation often occurs inside the group. The idle funds and shortage of internal funds can not be adjusted, resulting in the total financial cost of the group company has remained high.

Two is the lack of effective management of idle funds for enterprises.

Any currency has a certain time value.

At present, there is a lack of effective capital management mode of value added and preservation.

Three, there is a lack of unified financial fund control system.

Because the information is not smooth, the decision makers of the group can not grasp the fund information timely, accurately and comprehensively, and can not carry out effective management, supervision and control.

It is imperative for the group to set up a sound and effective fund management system as soon as possible. The advanced experience of cash flow management is as follows: first, capital budgeting, the prediction of cash flow can mainly be carried out from two aspects: cash flow and outflow.

According to the length of time, the prediction of cash flow can be divided into short term, medium term and long term.

The two is dynamic management. On the basis of regular compilation of cash flow statement and cash budget, enterprises should also grasp the dynamic management and control of cash flow from the two aspects of cash inflow and cash outflow.

The three is to set up a group cash pool. The so-called group cash pool business refers to the fact that the cash balance of one or more member units belonging to the same group enterprise is actually pferred to a real main account. The main account is usually controlled by the group headquarters, and the member units need to obtain funds from the main account for external payment when using the funds.

Four is to improve the internal cost of enterprises and reduce unnecessary cash outflows.

Five, we should make rational use of idle funds within enterprises. Some enterprises will have temporary and large idle funds, which will puzzle these companies how to make reasonable use of these idle funds, increase the profits of funds, and avoid the ineffective deposition of large amounts of funds.

Financial institutions also have various products that can help enterprises increase their capital and preserve their value.

Hua Hua shares standardized process to prevent overdue settlement

Experience: Bai Zhigang, director of capital operation of the finance department, said that under the uncertain circumstances of the international capital market, a sound fund settlement system is essential for the healthy and stable operation of the enterprise. This is also the original intention of re promulgation of the "financial department settlement management regulations" at the beginning of the year.

This is not only in accordance with the requirements of the new accounting standards and the adjustment of the state's fiscal, tax and foreign exchange control policies, but also further standardizes the financial settlement and evades the risk of capital operation.

The implementation of the regulations of the Ministry of Finance on the settlement of financial affairs of the Limited by Share Ltd of China spinning has further standardized the payment of the gray cloth in the raw material market department and the purchase and purchase of dyestuffs, auxiliaries and auxiliary materials in the supply chain procurement department.

The approval of payment application shall be conducted according to 6 steps: business management, business audit, financial audit (two level audit), authorized signing, payment plan, and payment. Which link will lead to payment "stuck", and the company's finance department will not accept the application without prior examination and approval, overdue operation and approval, exceeding the budgetary range or failing to process payment.

This regulation not only restricts payment settlement, but also the quantity of raw materials purchased by various business companies.

The amount and amount of funds that a company with good financial capital can control is much higher than that of a business company with poor capital recovery.

This information comes from the weekly financial data report of the finance department.

At the beginning of this year, China Textile Limited by Share Ltd had tighter regulation and requirements for financial capital management, reiterated the regulations of the Ministry of Finance on settlement management, which not only further regulated the company's financial settlement in accordance with the requirements of the new accounting standards and the state's fiscal, tax and foreign exchange control policies, but also strengthened the management of funds, avoided the risk of capital operation, and provided support for the stable and healthy development of enterprises.

Bai Zhigang, director of fund operation of the company's finance department, said that financial settlement was conducted according to the capital settlement process, and business personnel no longer procrastinate to handle corresponding settlement business. This not only improves work efficiency, but also reduces the phenomenon of overdue settlement.

This system also standardized the settlement business such as advance payment, loan and related fee approval.

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For the choice of contract settlement method, 90 days' L / C settlement and forward acceptance collection are usually adopted, and payment is not accepted at sight.

Double hill group to increase the rate of return of funds reward and punishment

Experience: Shuang Shan Group speeds up enterprise capital turnover by improving capital ration management, implementing management budget management and reducing inventory inventory management.

In particular, it is worth mentioning that the group has increased the rewards and punishments for the return of funds, rewarded the accounts receivable within 7 days, and exceeded the penalties. The long-term unused inventory products were disposed of in advance to reduce sales and raise the capital share of enterprises, which increased the profit to 3 million yuan in one year.

The group will place an important position in reducing the raw and auxiliary materials. When the order is placed, the consumption limit of raw and auxiliary materials will be approved. The warehouse will control the material consumption. The excess consumption must be examined and approved by the principal person in charge of the company. The consumption will exceed 15% to report to the main leaders of the group company for approval.

At the end of each month, the Finance Department of the group seriously analyzed the factors of excessive consumption of raw and auxiliary materials, and looked for ways to reduce consumption of raw and auxiliary materials and practical savings measures.

There is a misunderstanding in the management of administrative expenses. It is often arranged according to the plan of last year. In fact, the expenditure of last year will also be unreasonable or wasteful.

The two mountain group manages the administrative overhead expenses according to the principle of zero base budgeting, and judges whether the expenditure is a necessary part of expenditure and whether it can be reduced any further.

The budget should be implemented to individuals, without any special circumstances, the overspending part will be resolutely excluded, and monthly cost assessment will be carried out according to how much money should be spent and how much money should be spent to calculate accurately.

At the same time, the rewards and punishments for the recovery rate of the loan receivable should be increased. The turnover days of accounts receivable should be shortened from the past 30 days to the 20 days now.

The group controls matters in the use of funds and ensures the safety of funds. The group stipulates that within 5000 yuan, the deputy general will be responsible. 5000~10000 yuan will be examined and approved by the general manager, and 10 thousand yuan or more shall be examined and approved by the chairman, strictly control the scope of expenditure, eliminate all unreasonable expenses, reduce waste, reduce consumption, and promote the rational use of funds.

Reduce inventory inventory management and speed up enterprise capital turnover.

According to the production and operation of enterprises, the storage of cotton and the fixed stock of machine parts, the group will reduce warehouse costs, shorten the procurement cycle and production time, and reduce the stagnation of production process.

In the pricing of products, we must keep pace with the market and control the finished products of cotton yarn and cotton cloth in a reasonable range.

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Ji Hua 3536 signed the responsibility for increasing expenditure and cutting expenditure targets

Experience: since 2012 April, inter China 3536

Two important receivables were not recovered in time, which affected the capital turnover of production and operation.

At the end of August, after the 5 / 12 earthquake, the relocation of the new factory after the earthquake was badly needed.

Although the pressure is great, but the company skillfully put in a clever move, without borrowing, ensure that the production and operation of normal supply of funds, and successfully moved.

At the beginning of this year, the company set up an internal control and management mechanism, which is based on the target system, responsibility system, tracking system, evaluation system, assessment system and incentive system.

The Party committee and the administrative functional departments are keeping a close eye on the objectives, implementing the efforts at all levels, and implementing the goal of struggle to all levels of leaders, departments, teams and even employees.

Take the profit as the center, take cost as the main line, introduce the market mechanism, and dig deep into the work of purchasing, production, logistics, sales and capital five profit sources.

At the same time, the company estimated the risk ahead of schedule, made detailed calculations and deductions for all aspects of the cost, and prepared contingency plans.

Strengthen capital control and ensure supply.

The company has intensified the centralized management of funds, stipulating that funds for production and operation and non production and operation shall be signed by the chairman of the company. The company's leaders should check the expenses in layers and even verify some capital costs in person.

Adhere to the cost and department heads responsible for year-end assessment linked to strictly control the "three charges" expenditure.

We should strengthen the collection of accounts receivable, reduce stock inventories and improve the efficiency of capital turnover.

We should give full play to the role of auditing and supervision, effectively prevent risks, and ensure that the company's capital security rate reaches 100%.

The company's finance department strictly controls the funds strictly. In addition to the implementation of the approval system, it also arranges the expenses according to the company's financial condition. The expenses approved by some leaders have been controlled as much as possible by the Department, which can be pushed back and executed as far as possible.

At the same time, the Ministry of finance continues to take measures to reduce financial costs.

Open the source and find funding.

While excavating potential, the company actively opens up the source of funds and seeks new blood.

The company signed a responsibility book with its finance department, human resources department, company office, R & D center, technology department and other functional departments. It called for the use of government related preferential policies to save money and find funds for the company, and achieved good results.