What are the characteristics of cash flow management in commercial enterprises?

Cash flow management refers to the financial management activities that focus on cash flow, give consideration to interests, and focus on business activities, investment activities and fund-raising activities of enterprises. Including cash budget management, cash inflow and outflow management, cash use efficiency management and cash settlement management.

In the cash flow management of commercial enterprises, the main features are:

We should not only ensure the needs of production and operation, but also save and rationally use funds.

Those who manage funds should manage assets, and those who manage assets should manage funds, and fund management should be combined with asset management.

Ensure the combination of capital use and material movement, adhere to the principle of clearing money and materials, and abide by the settlement discipline.

Liquidity can only be used for the needs of production and operation turnover, and shall not be used for capital construction and other expenses.

The cash flow forecast of an enterprise can be divided into short-term, medium-term and long-term forecasts according to the length of time. Generally, the longer the term, the worse the accuracy of the forecast. What kind of cash flow forecasting method to choose depends on the overall development strategy and actual requirements of the enterprise. At the same time, the cash flow forecast of an enterprise can also infer a reasonable cash stock from the inflow and outflow of cash.

Controlling cash flow is the internal control of enterprise cash flow. Controlling enterprise cash flow is based on correct planning, which mainly includes centralized control of enterprise cash flow, receipt and payment control, etc. The centralized management of cash will be more beneficial for enterprise fund managers to understand the overall situation of enterprise funds, control this part of cash flow quickly and effectively in a larger scope, and make the preservation and utilization of these cash reach the best state.