Main ways of improvement of management of cash flows

3.1 Problems in Cash flow management

Production and business activities of each enterprise involves the difficult task of cash management, regardless of the economic environment in which it is located. Effective management of cash resources in the current economic climate is extremely relevant, since the financial condition of many of them can be described as extremely unstable. In enterprises in most cases there is no proper organization of the financial system, there is no relationship between the structural units are not established and not demarcated their function. Lack of qualified leads to inefficient use of funds.

In modern conditions, the deepening and expansion of the theoretical base is the foundation of practical recommendations for improving the system of money management companies, which are traditionally the most important independent object of financial management. At the same time, particular importance is the development of new forms and methods of money management with a focus on the specifics of the company.

At the present stage, a growing number of companies recognize the need to consciously control the formation of long-term cash flows based on scientific methodology of forecasting and species to adapt to the overall objectives of economic development of the enterprise and changing environmental conditions. Effective tool for long-term management of cash flow, as subordinate to the goals of its total development in the significant changes taking place indicators system of state regulation of cash flow, financial situation and commodity markets and the consequent uncertainty of results of economic activity supports the policy of cash flow management.

Cash management policy is part of the overall economic strategy of the company that provides the formation of the priority objectives of the organization of its cash flow and selection of the most effective ways to achieve them. Cash management policies can be represented as a general plan of action in the field of organ. Organization cash flow businesses, identify priorities and directions of these types of flows, the nature of the formation and use of financial resources to ensure the intended total economic development of the enterprise. Policy control of cash flow is a system concept, the development of a cohesive operating, investvestment and financial activity.

3.2 The role of financial management in management funds

The widespread acceptance of domestic financial management scholars and practitioners, the introduction of this discipline in the curriculum of higher institutions is the main content of a new stage of development of Russian science of financial management of the enterprise. It is, in essence, a fundamental qualitative change in the science.

The new complex stage of market economy in Kazakhstan has created a need for training as business practitioners and students of universities financial management - financial management science companies to achieve its strategic and tactical goals.

To date, a key element in the management of any company is the chief financial officer. This is due to the fact that in a market economy, there is instability - increasing bank interest rates, a fall or a sharp increase in foreign exchange rates, political unrest - all this implies the adoption of risky financial decisions. Naturally, the financial manager will always be interested in reducing financial risk, finding optimal solutions to increase the profitability of the company.

Of financial decision-making is often the fate of the company, so the financial analysis and planning is given enough importance. Why did not come all the participants of the Kazakhstan market.

In many companies, financial management as a separate unit is still not functioning. Often, many of the financial decisions taken by the heads of companies that are based only on personal assumptions and preferences, not infrequently, such solutions are detrimental to the company.

Thanks to foreign experience in Kazakhstan is well developed consulting services market, resorting to which you can only improve on the management of the company, but the financial position of the company.

Financial management is gaining increasing pace of development in the near future, only a positive impact on the economic activity of Kazakhstani enterprises.

As one of the most important functions of financial management, cash management - one of the key success of any company.

Cash is a limited resource, so you need to most effectively manage these assets. That is, As noted in the first chapter of the thesis, the funds should not just be kept in the account of the company, started up in inventory, too many of which leads to a decrease in the liquidity of the company, and should bring the most benefit.

The process of money management is quite complicated, because needed daily to track cash flow, analyze the situation of debtors and creditors to monitor the emergence of free cash flow to profitably invest in securities or beneficial project.

There are many ways and methods to improve cash management and overall financial management.

For example, to increase the cash flow of interested funding sources that are not associated with mutual trade practices offer the following recommendations:

a) Study the financial terms of short-term financing offered by the partner bank, and options for improvement. Any financial manager will search for the cheapest and less risky sources of financing.

b) Revise the terms of debt (delay of payment of principal, interest rate reduction), and the study of the possibility of refinancing loans to other banks. Finding new ways and possibilities of financing is always the case in the practice of financial management.

c) If there are no other options or sources of financing for the company's operations are necessary negotiations with the shareholders or owners of the company of raising additional financial resources. By this method often uses management companies, as very common shareholders are the managers themselves, so it's almost always a solution will be accepted.

d) Reducing or delaying the planned dividend payments. Since one method of money management is to slow payments, the company will also try to make payments or pay the loan as late as possible, but you must not cross the line to not lose the good reputation of the firm.

In a competitive firm can not always dictate the price, ie to increase profits the company will seek to reduce their costs. It may be decided to optimize or reduce labor costs: the introduction of the bonus payment schemes, the burden of separation pay cuts, if any, will be carried out. In this situation, will also be revised and simplified organizational structure with a view to removing unnecessary layers of management and reduce labor costs.

3.3. Recommendations to improve cash flow management

The company has a large target cash balance in the current account and the box office.

The presence of a significant cash balance, of course, protects businesses from cash shortages (lack of cash flow in the sub-periods).

It should be noted that in 2009 and 2010, according to the accounting entity incurred losses. This has resulted in additional involvement in the turnover of short-term borrowings.

Against this background, except that the company has to pay interest on short-term borrowings target significant cash balance in the current account leads to the formation of significant amounts of lost revenue that is generated from keeping money in the current account instead of investing them in securities paper or other short-term investments.

First, it is recommended to change the policy in regard to the direction of cash flow to increase the resource base for the planned observance inventories and raw materials, which will reduce the "outflow" of funds. Second, review the amount of the target cash balance and bring it to the optimum level. Excess cash to send to the most attractive and beneficial to society, and enough liquid short-term investments. Should strive to reduce accounts receivable and increase the share of cash payments.

Дата добавления: 2015-08-27