How to improve the financial management level of real estate industry

The real estate industry is a capital-intensive and high-risk industry. Real estate enterprises often need to raise a large proportion of funds from the financial sector and other enterprises, and the general loan amount is very large. At the same time, real estate development and management has the characteristics of wide coverage, long investment cycle, slow capital recovery and high operational risk. Therefore, in order to achieve healthy development and obtain sustainable core competitiveness, real estate enterprises must improve their financial management level.

First, the financial management of real estate enterprises

(1) Enterprises usually adopt the traditional family management mode. At present, the typical management mode of many domestic real estate enterprises is the high unity of ownership and management rights, and the investors of enterprises are also operators. Especially in financial management, the financial controller, accountant and cashier of an enterprise are mostly held by the relatives of investors. This will inevitably bring some negative effects to the financial management of enterprises: there are some phenomena in enterprises, such as not establishing accounts according to law, doing accounts part-time, suddenly doing accounts, replacing accounts with tickets, cashing in IOUs, etc. Enterprise managers are seriously centralized, do not distinguish between power and responsibility, and act beyond their authority, which leads to disorder and confusion in financial management; Black-box operation is prevalent, financial monitoring is lax, and accounting information is distorted. The tax risk increases, and the phenomenon of tax evasion is serious; Enterprises have not established internal audit institutions, and even if they do, it is difficult to guarantee the independence and impartiality of the audit.

(B) weak financial management mechanism. At present, the financial management of most real estate enterprises is still in the primary accounting stage, and the powerful role of financial management in strategic planning, implementation and control has not been fully exerted.

1, financial system is not perfect. A strict financial accounting system has not been established, and accounting procedures, including the consistency of accounts and facts, and the consistency of accounts and facts, have not been effectively implemented, and the relevance, authenticity and reliability of accounting data are poor; The financial internal control mechanism is either not established or exists in name only, which can easily lead to internal misappropriation and capital loss.

2. Financial management is mostly "passive reflection". Only stay in the financial accounting stage of bookkeeping and preparation of financial statements; The management functions such as financial forecasting, decision-making, control and analysis are basically blank, and there is a lack of management accounting information to support management and decision-making.

3. There is no plan for raising and using funds, and there is no concept of cash flow management. Especially in the case of good economic benefits, there are more investment opportunities to choose from, which makes it easier to ignore financial management, blindly expand production scale and increase the difficulty of enterprise risk control.

Most of the real estate enterprises in China are private economic sectors. According to relevant data, the average life span of enterprises is only about three years. An important reason why many enterprises have difficulty in sustainable development lies in the low level of financial management, which can't keep up with the needs of enterprise development. Therefore, real estate enterprises must face up to their own financial background, vigorously standardize the financial management system and strengthen financial management.

Second, measures to improve the financial management level of real estate enterprises

(1) Optimize the management mode and establish a modern enterprise management system. Modern enterprise system is an enterprise system with clear property rights, strict governance structure, equal responsibilities and rights, extensive financing channels, sound restraint mechanism, rapid expansion of enterprise scale and stable and lasting operation, which meets the requirements of modern socialized mass production and market economy. The basic requirements of modern enterprise system are equity of property right, corporatization of organization and institutionalization of management. That is, through the separation of ownership and management rights, the interference of investors in the daily operation and management of enterprises can be reduced, so that managers can concentrate on the daily management of enterprises, improve management concepts and management systems, effectively use modern management science and means in production and operation, mobilize the enthusiasm, initiative and creativity of operators and employees, and effectively solve the problems brought about by traditional family management of real estate enterprises, such as small scale, unsatisfactory system, ineffective mechanism, chaotic management and weak comprehensive competitiveness. Establishing modern enterprise system is the development direction of real estate enterprises, and it is the inevitable choice for enterprises to scale, grade and level.

(B) to build a sound financial management system. In order to promote the transformation of real estate enterprises from accounting finance to management finance, make financial management one of the core means of enterprise management and ensure the realization of enterprise development goals, real estate enterprises must build a perfect financial management system.

1, improve the financial accounting system. (1) Set up accounting subjects scientifically. According to the enterprise accounting system, new enterprise accounting standards and management control requirements, scientifically set up accounting subjects. For example, in the subject of developing products, the accounting object should be refined as much as possible to ensure that the products are classified according to the product name or building number; In the development cost and sales revenue account, according to the product or building number, set up various development cost and expense items such as land cost and subordinate detailed account, prophase cost and subordinate detailed account, refine the cost object, and analyze the profitability of different products. (2) Unified accounting procedures. The setting of enterprise accounting subjects should be unified, and appropriate flexibility should be increased on this basis; The format, types and uses of accounting vouchers should be unified; The procedures for recording and collecting financial data, accounting treatment and settlement, and the preparation and reporting of accounting statements should be unified.

2. Establish a management accounting system. The main task of establishing a management accounting system is to establish a responsibility center. Responsibility centers are defined as cost centers, profit centers and investment centers according to management objectives and responsibilities of various functional departments, project companies, project departments and other organizational units. Responsibility center management is to formulate performance appraisal indicators, standards and methods according to the responsibilities of each responsibility center, and dynamically reflect the monthly, quarterly and annual business implementation of each responsibility center through the performance report of each responsibility center, so as to objectively evaluate the performance of each responsibility center. At the same time, establish a scientific management accounting reporting system, timely feedback sales progress, project development cost, project management cost, comprehensive benefits and other information to the management, and support the management's business decision-making behavior.

3. Improve the budget accounting system and realize the budgeting of financial management. The budget accounting system of real estate enterprises mainly includes project budget and capital budget. The project budget is a comprehensive budget for the pre-feasibility study, planning and design costs, engineering development costs, indirect development costs, operating income, loan plans and other contents that will occur in the project construction. Capital budget refers to the company's plan to coordinate the operation of enterprise funds according to the overall capital situation after summarizing the capital demand and use plan of each responsibility center. The financial department of an enterprise should prepare the estimated income statement, balance sheet and cash flow statement around the profit target, and construct the enterprise financial budget index system. At the same time, it is necessary to strengthen management, adhere to the principle of budget analysis and assessment combining monthly analysis, quarterly assessment and annual general evaluation, conduct regular inspections, strictly assess, implement responsibilities, and honor rewards and punishments measures, so as to form a pattern of qualitative restraint of economic behavior based on financial system and quantitative restraint of economic behavior based on financial budget.

4. Strengthen fund management. (1) In terms of fund raising and management, we mainly do the following work: First, strengthen the credit management of enterprises. Credit is the symbol of the rise and fall of an enterprise. Enterprises with good credit will get long-term low-interest loans with favorable conditions, and enterprises will have a steady stream of funds to develop and operate more real estate projects. Secondly, there must be a plan to raise funds. Thirdly, we should gradually expand the proportion of the project's own funds, so that most of the loan interest expenses can be converted into corporate profits. (2) Accelerate capital turnover and strengthen the management of capital utilization. First, speed up the flow of funds. Due to many factors, the development projects of real estate enterprises often can't be completed on time, occupying a lot of funds, and the capital flow is not smooth, which will seriously drag down enterprises. Therefore, enterprises should get rid of "delaying projects" as soon as possible. Secondly, strengthen enterprise cash management. The terms of accounts receivable and accounts payable should be as consistent as possible, and the recovery period of accounts receivable should be shorter than the delivery period of accounts payable, so as to ensure the timely payment of accounts payable and avoid excessive interest burden and capital occupation. Third, prevent enterprises from over-advancing funds, otherwise, once a debt crisis occurs, it will endanger the survival of enterprises. Fourth, strictly control the expenditure of management expenses. Real estate development enterprises should prevent ostentation and extravagance, saving face and extravagance.

5. Strengthen the construction of financial system and improve the internal audit system. When formulating financial accounting system, real estate enterprises should follow the principles of pertinence, operability and compulsion, and formulate a set of financial management system that conforms to the actual situation of enterprises: first, set up special financial management institutions to be responsible for fund raising, cash cashier, financial management, wage accounting, budget preparation and final accounts execution of enterprises; Second, it is necessary to formulate corresponding financial management systems, such as cash, procurement, reimbursement, audit and other systems, and implement standardized and institutionalized financial management; Third, it is necessary to formulate the corresponding assessment system and strengthen the supervision mechanism.

When real estate enterprises develop to a certain stage, internal audit becomes very important. Internal audit should follow the development of financial revenue and expenditure audit in the fields of economic benefit audit, management audit, internal control system evaluation, project budget audit and special audit. We should be good at finding problems and putting forward solutions in time, so as to improve the financial management level of the whole enterprise.

6, improve the level of tax planning, reduce the tax burden of enterprises. Tax planning within the scope permitted by the tax law and relevant laws is a work supported by the state and benefited by enterprises. The financial department of an enterprise should constantly improve the level of tax planning, follow certain tax planning principles, choose and apply appropriate tax planning methods according to its own actual situation, reduce the tax burden, increase the cash inflow of enterprises, and strive to achieve the goal of zero tax risk and maximum profit (value).