How to establish long-term financial control measu

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How to establish long-term financial control measures for enterprises during the growth period of enterprises, they usually start with some simple financial control, such as reducing trivial cash expenses or checking whether the expense accounts are correct. According to mendlowitzweitsen, an American financial expert, these practices can only bring short-term benefits. If an enterprise pursues long-term growth and profits, it should start from the following directions

1. Don't pay cash too quickly. In order to gain the trust of suppliers and creditors, enterprises often pay cash quickly. Although this will obtain good debt credit, it will also reduce the cash available to the company, and finally lead to the company to increase additional borrowings. Take accounts payable due within 60 days as an example. In fact, it is the same as paying off within 40 days. They have a unique understanding of the mold structure design, so they prefer to keep a little more cash within the scope of flexibility, and do not rush to pay off the accounts payable

2. Increase the speed of delivery. The faster the customer gets the goods, the faster he may pay. This can increase the cash of the company, and the rapid delivery also increases the possibility of the customer ordering again. Therefore, the company should carefully track the customers. From order to delivery, its waste can also be degraded into non polluting objects; The third is to find out whether there are delays and inefficiencies in the process due to its weak crystallization ability, so as to solve the problem as soon as possible

3. Consider different financial expenditure modes. When purchasing capital equipment, manufacturers often pay cash in order to avoid the trouble of paying interest. In fact, if the financial method of long-term investment is considered, according to the service life of the equipment, installment payment and interest payment can not only increase the income, but also properly retain the cash available to the company

4. Reduce inventory. Usually, products that sell quickly and sell a lot do not have a lot of inventory. Instead, it is the products that sell slowly and have a lot of inventory. It is difficult to accurately predict the sales volume, resulting in the production of these inventories. Inventory occupies the available space of the company and increases the management cost. The company should always check which inventory is excessive and sell it as soon as possible, even losing money. At least clearing the inventory can immediately obtain cash and available space, and reduce the company's management expenses

5. Understand the customer's credit. The best way to avoid customers' delay in payment is to make a report on accounts receivable, review these reports regularly, mark out overdue or problematic accounts, and immediately notify customers. Consider hiring a dedicated person to take charge of the work. Some manufacturers think that customers don't like this kind of Dunning. In fact, as long as employees are trained to respond with appropriate manners, customers won't be disgusted

6. Target large debtors. Despite the manufacturers' attention, there are still some accounts that cannot be recovered. In fact, the manufacturer can not give up these debts too early, because some customers' assets are more than the company's net worth, and they still have the ability to repay 2. 5% Experimental program debt capacity. At this time, the company can negotiate with such a large debtor about the method of repayment and maintain future transactions. Don't give up your creditor's rights before you know the situation completely

7. Control salary levels. Personnel cost is usually one of the important expenses of the company. In order to avoid excessive expansion of personnel costs, the company should pay attention to whether the payment of overtime pay is appropriate. Excessive overtime may represent inefficiency. On the other hand, pay attention to the productivity of employees. Can we reduce the number of employees and maintain the same productivity? Ultrasonic vibration drilling is a non-traditional processing method. Can the equipment be improved to increase the productivity of employees? These seemingly subtle projects are important practices neglected by many companies. Sound financial management can accumulate the strength of the company's growth

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