Financial Management of Construction Problems and Solutions

Abstract In this paper, the current construction financial management problems, from improving the internal management system to improve project management, from strengthening the cooperation between banks to a reasonable allocation of capital and other aspects of the objective analysis, and on this basis to solve the problem of response. Keywords:
construction enterprise financial management; problems; countermeasures

With the further development of socialist market economy, improvement, construction companies becoming more competitive, the industry has entered the era of little profit, many enterprises are facing for-profit capacity and poor regulation, low levels of financial management, operation, and many other problems in poor condition. By strengthening the financial management of construction enterprises to plug the loopholes, reduce costs, improve business management, construction enterprises has become an important issue solved.


First, the current financial management of construction enterprises in China the main problems

(a) the concept of weak financial management, financial management in business management have sufficient understanding of the core of many construction companies
more emphasis on construction tasks of the contract, attention to the completion of construction progress and quality improvement projects that focus on production is the key, ignore the importance of financial management that the financial sector after the reckoning, "Mr. reimbursement," cost-effective is the dry out , not counted out. The concept of weak financial management, financial management failed to recognize highly integrated, throughout all aspects of business management, business management, quality and success of the end are reflected in different financial results.

(B) inadequate financial management system, weak financial oversight functions
standardized financial behavior must be appropriate to form a binding financial management rules and regulations, establish sound financial management is to improve financial management rules and regulations most directly and effective way. Although most construction companies have their own financial management, but is too simple, often focusing on the approval process and other costs and expenses basis of accounting work, its budget management, revenue management, asset management, financial analysis and other important functions are not fully reflect the . Some of excessive concentration of power management of construction enterprises, the lack of effective supervisory mechanisms, and makes the financial weakening of oversight functions, to the enterprise economy caused some damage.

(C) corporate financing difficulties, a serious shortage of working capital debt financing
way from the point of view, the construction units outstanding payments, making the construction company's debt is increasing, asset-liability ratio is generally high, the banks Construction companies will not release the funds as the focus of credit; sovereignty of financing from the point of view, to attract equity investment by the state laws and regulations, enterprises and other economic factors, the construction of external equity financing is difficult to become a major means of corporate finance. In addition, the current low construction enterprises industry profit margins and profit after tax retained the basic funding can not meet the growing needs of enterprises. Construction enterprises should not be in the market, financing, and difficult to obtain bank loans, financing the construction business to become a common phenomenon.

(D) financial management weaknesses, lack of unified management
construction enterprises are characterized by frequent mobility, highly fragmented, decentralized enterprise fund, the raising of funds, allocation and efficiency. On the one hand, multiple accounts opened by individual units, capital idle, precipitation serious; the other hand, some units are small to raise badly needed funds difficult. Some companies operating conditions of good times within the units own way, always wanted to get rid of headquarters supervision, control, when business conditions deteriorate, then come back to corporate headquarters for financial support. Lack of unified management of enterprise funds, both in new projects are facing a serious funding shortfall.

(E) project cost control is not strong, and enterprises is difficult to ensure the project is the construction
source of business efficiency, cost management will have a direct impact on the level of economic efficiency of enterprises. In recent years, many construction companies, while expanding in size, management level did not increase, but remain at a low level. Cost control measures on the formulation and implementation is too simplistic and superficial, the prevalence rate of cost reduction the light of experience preparing cost plans and the development of the phenomenon of target cost, while ignoring the environment of the project site, construction conditions and duration requirements, resulting in cost accounting , design changes, engineering and other aspects of the claim there is a big risk, a serious drain on business efficiency invisible.


Second, at this stage to strengthen the financial management of construction enterprises the main measures to be taken

(a) play a central role in financial management, financial management level
improve financial management of enterprise funds the whole process of decision-making exercise, planning and control of the management activities. Financial management throughout the entire process of business management, both a breakthrough in enterprise management, enterprise operating the control point is, as the core of enterprise management, its objectives and overall business objectives. This requires leadership at all levels to firmly establish the financial management is the core of the basic business management concepts, this concept throughout the enterprise and the daily work, to point, and establish sound financial management system, and constant innovation, gradually improve the financial management. Links to Research Papers Download http://www.hi138.com