This paper analyzes the influence of several common businesses on the company's cash flow, and from the perspective of an independent third party, puts forward some suggestions on improving the company's cash flow, so as to reduce the cash outflow and improve the company's cash flow without affecting the normal operation of the company. Keywords: improvement; Company; China Library's classification number in cash flow: F275.2 Document code: A document number:1673-291x (2012)13-0138-02 As the company's chief financial officer, it mainly Based on my own practical experience, the author tries to introduce several methods to save the company's cash outflow and increase the cash inflow from the perspective of financial management. 1. Financial lease or bank loan? A pharmaceutical group company owns a large pharmaceutical factory and a large 3A hospital. In order to improve the office conditions of the hospital, the company recently plans to buy a large CT scanner. In order to buy this instrument, the hospital applied for a loan from the bank. Considering that the hospital is a non-profit organization, the bank did not agree to the long-term loan request of the hospital in the past ten years, but asked for a loan in the name of a rapidly developing pharmaceutical company. After reviewing its own conditions, the management of the company thinks that the operation of the hospital is relatively stable and the risk is relatively small. Although it is impossible to create high profits to repay the loan in a short time, the cash flow is still sufficient in the long run; Pharmaceutical companies are in a period of rapid development and have plans for listing and financing. According to the requirements of listed companies to issue shares for listing, profit-making pharmaceutical companies and hospitals as non-profit organizations must operate separately, so the management of the company does not want to see pharmaceutical companies bear high debts for the operation of hospitals. The suggestion of the third-party financial consultant: according to the cash flow of the hospital, find a company engaged in financial leasing of medical devices and sign a financial leasing agreement with it in the name of the hospital for a period of ten years, so that the cash flow generated by using CT scanners in the operation of the hospital can fully pay the annual financial leasing of CT equipment, and it will not affect the listing financing plan of pharmaceutical companies; In this way, in the case of small cash outflow, the right to use precision equipment worth tens of millions of yuan was obtained. Facts have proved that the financial crisis has had a great impact on all walks of life in the country. As a hospital, it is a less affected industry. After evaluating all aspects of the hospital's operating indicators, the financial leasing company readily agreed to invest in this equipment. Second, should we pay the goods first or pay taxes first? A state-owned enterprise belongs to industrial manufacturing. At the end of the month, the company's purchasing staff and supply department came to the finance department to apply for payment of the purchased raw materials. They were told that funds were tight this month, with only nearly 4 million cash left, and they had to pay this month's value-added tax to the tax bureau. The supplier told the finance manager that the payment had been delayed. If they don't pay, they won't get the preferential treatment of early supply next month, which will cause the company to stop working. On the one hand, it is the tax bureau representing the national law enforcement department, on the other hand, it is the supplier that determines whether the company's production can continue. The finance department is in a dilemma. The scheme suggested by the third-party consultant is: agree to pay the payment of 3.4 million yuan, provided that the supplier is consulted and asked to provide the VAT invoice of 23.4 million yuan with the date of issuance this month; In this way, the company can get the input tax worth 3.4 million yuan to offset the output tax, thus avoiding the cash outflow of value-added tax worth 3.4 million yuan paid to the tax bureau and alleviating the urgent need for payment to suppliers. Third, whether to use bank loans or shareholders' money. A private enterprise in the south belongs to the pharmaceutical manufacturing industry. At present, the company is relatively small in scale and in a period of rapid development. There are several high value-added development projects in the R&D process. Shareholders and senior management of the company are hesitant about whether the company should go public for financing or use bank loans. The company's operating conditions: First, the company's product sales are good and the industry profit rate is high; Second, the company's operation is in the profit stage, and there are few shareholders in the company, so it can get higher remuneration; Third, the company belongs to the Chinese medicine manufacturing industry, and needs to develop new products and high value-added products, otherwise it will not be able to achieve the company's new goals by relying on traditional products. Financial analysis: if we rely on bank loans, the company needs to pay high interest. Once the bank stops lending, the company's R&D projects will be unsustainable; If financing goes public, the company's sales and production scale is too small, and the procedures to be performed for listing are complicated and last for a long time. Third-party financial consultants suggest: first, determine whether to use the bank's money or shareholders' money. If you use a bank loan, there will be problems such as paying high interest, great pressure on repayment when the loan is due, and unsustainable research and development of the company. The use of shareholders' money does not have the above three problems, but only needs to increase the transparency of financial statements. So the financial adviser suggested that the company use shareholders' money. Shareholders' money comes from two sources: first, the company issues shares for listing; The second is to introduce venture capital institutions; In view of the long-term upward development trend of the world economy, listing financing is the only way for companies to expand their scale and enhance their competitiveness. Companies can choose to list and issue shares on domestic GEM and SME board. However, at present, because the overall income and profit scale of the company have not reached the listing standard, listing financing is a long-term process, and it can be expected that listing financing should be the long-term goal of the company, not the short-term goal. Judging from the current development of the company, the company has very good fist products and exclusive advantages, and is in a period of rapid scale expansion. Therefore, it is undoubtedly a worthy choice to actively contact institutional investors and introduce venture capital. At present, there are many venture capital institutions in the market, and more and more venture capital institutions are actively looking for promising private companies and emerging industries as investment targets. After the company grows up and goes public, it will adopt an exit mechanism to realize investment and get very good returns. Iv. other ways to reduce cash outflow in order to reduce cash outflow, most companies have adopted the policy of paying wages next month, that is, at the end of next month, according to the attendance of employees last month, paying wages last month is equivalent to using employees' labor for one month in advance and delaying paying wages for one month, thus saving one month's labor cost cash outflow; However, this saving method has the characteristics of one-off. That is, only a part of cash flow can be saved in the beginning month, and it cannot be used as a long-term means to control capital flow. In addition, some companies adopt the settlement method of delaying payment and collecting sales money from customers in advance, which also reduces the outflow of funds and increases the inflow of funds. However, these settlement methods are also affected by the relationship between market supply and demand. Only by winning the consent of suppliers and goods sellers can it be effective. Reluctantly implementing them will often lead to the loss of credibility of customers and suppliers, which will adversely affect the company's image and long-term development. V. Ways to increase cash inflow Increase cash flow by cashing the unexpired bank acceptance bills in advance; At present, due to the emergence of fake bills, banks only accept bank acceptance bills from high-quality customers in order to avoid risks. Resale the unexpired accounts receivable to the bank to obtain cash inflow, but the accounts receivable accepted by the bank are generally in good reputation and do not need to recover the liquidity of the venture company. Therefore, the increased cash flow can help enterprises to use it in production and operation, thus avoiding loans.
Two, five ways to increase the cash flow of enterprises?
Cash flow is the total amount of funds received and paid by an investment project through cash outflow and cash inflow during its whole life cycle. It is the necessary information to evaluate the economic benefits of investment schemes. The specific contents include: (1) cash outflow: cash outflow is the total capital expenditure of investment projects. It includes the following items: ① investment in fixed assets. Various capital expenditures for the purchase and construction of fixed assets. ② Investment in current assets. Funds occupied by projects such as inventory, monetary funds and accounts receivable required for investment projects. ③ Operating costs. Production costs, management costs and sales expenses incurred in the operation of investment projects. Usually expressed as the balance of all costs MINUS depreciation. (2) Cash inflow: Cash inflow is the total capital gain of investment projects. Including the following items: ① operating income. Sales revenue from selling products in the course of business operation. ② Residual income or income. The residual value of fixed assets at the end of use, or the cash income from selling fixed assets before the end of use for some reason. ③ Recovered current assets. The original current assets investment shall be recovered when the life of the investment project expires. In addition, the cost reduction after implementing a decision is also regarded as cash inflow.
Three or five ways for enterprises to increase cash flow?
1. The most important increase in cash flow comes from net profit.
To improve cash flow, we must increase income as much as possible, control costs as much as possible, and increase profits through "scissors difference".
In this case, we still have to find ways to tap the growth space, even if we give up some gross profit space (such as reduction, promotion and buying gifts), we must increase our income.
2. Be sure to control and minimize accounts receivable.
Net profit does not necessarily generate cash flow. A big reason is that there are more accounts receivable in sales revenue. Generally speaking, you receive "numbers" instead of "cash".
Once the other party has a situation, it may affect the cash income. Therefore, we must strictly control the accounts receivable, carefully manage the accounts receivable that have appeared, clarify the responsible person, and establish a work help table.
Enterprises that are not optimistic about their own cash flow must be managed more strictly, and at the same time see if they can cooperate with financial institutions such as banks and handle credit through professional third parties.
3. Control internal costs and expenses.
Saving costs and expenses is the most direct way to increase profits and cash flow.
Under normal circumstances, reducing costs and expenses can only be done slowly, but we can also take some extreme measures in extraordinary times. For example, for some projects that have no output for the time being or have a long investment cycle, suspend or control investment;
Don't spend as much as possible, such as promotion expenses, advertising expenses, office expenses and other relatively less urgent expenses to suspend or control expenditures;
For example, merge some internal institutions, reduce management levels and reduce management costs with the gesture of a strong man breaking his wrist (this can also improve management efficiency and reduce the number of cadres);
In addition, in terms of expenditure, cash payment is not required if it can be paid in cash.
4. Pay attention to inventory management.
This inventory should be defined not only from the perspective of asset attributes, but also from the perspective of affecting business.
Not only their own inventory, but also the inventory of dealers (even the goods bought out by dealers), and even the inventory of upstream (even the inventory that is counted after ordering, and the supplier is responsible for it), because in the end, the inventory in these value chains will affect the operation of enterprises.
For many enterprises, if the inventory loss is calculated by 20%, there is probably no profit! Under the current circumstances, it will be more difficult to deal with the inventory and the task will be more urgent.
If the growth rate of sales exceeds the growth rate of terminal distribution, if the growth rate of inventory exceeds the growth rate of sales, please note that the growth of sales at this time is not a performance, but a very dangerous signal!
5. Cash flow cannot be increased by expanding accounts payable.
When we can reach an understanding with suppliers, of course, we can set a certain period of accounts payable, but we can't blindly and simply extend the period of accounts payable to transfer the pressure to suppliers. We need to make arrangements according to the actual situation, the bargaining power of both parties and the cooperation of suppliers.
Under the current circumstances, suppliers will also face greater financial pressure, which requires systematic thinking and response to the supply chain. Once the supplier fails to do this, the whole value chain will eventually be affected.
Under the current circumstances, we can see that enterprises with large investment in fixed assets have greater cash flow pressure. If the investment in fixed assets has no direct impact on improving efficiency, it is suggested to cancel or suspend it.
At the same time, the fixed assets that have been invested need to increase output and improve output efficiency. If it is indeed an enterprise that will encounter difficulties, it is even more important to consider whether it can dispose of some assets that can be realized and appropriately withdraw more funds.
4. What are the ways to improve corporate cash flow?
Issue bond