The Research On Financial Control Of Weiyi Liuan Project

With the housing system reform and development of urbanization, our housing market, at present stage, presents features of marketization and monetization. At the same time, driven by the increase of GDP per capita and support of credit policy, the early depressed need for house is released greatly. Housing industry has therefore become the pillar industry of our economy, and the boom of the industry plays a positive role for the steady and rapid development of national economy.It is necessary to conduct a study on real estate’s financial control because, not like other investments, investments on real estate projects have long payback period, and are full of uncertainties and of high risk. Financial control has become one of factors that are fatal to the success of a real estate project.Real estate companies are in a period of fast development, however, their organization forms are not mature, so there still exist a lot of problems in terms of financial control for these companies, such as the inappropriate financial control principle, the manager’s ignorance of financial risk, the neglecting of importance of financial control, lack of comprehensive budgeting mechanism, distortion of financial information and so on. These problems cause chaos in finance, low efficiency of capital assets, and eventually decrease a company’s core competency, and put the company at risks. From above analysis, we can see that it is very pressing to study the financial control of real estate project.For this reason, this paper introduces the contents and implementation effects of financial control of Weiyi Liuan project, points out its financial control system’s disadvantages, and designs appropriate financial control measures by using modern financial control theoryThe paper has four parts, the first one states the related financial control theories, and then the second part analyzes Weiyi Liuan project’s financial control status from five aspects:financial control environment, financial risk and evaluation, control activity, information and communication, and financial monitoring. And based on above analysis, the third part points out the existing problems, and designs the measures to solve them, which starts from improving financial control environment, emphasizes strengthening financial risk control, optimizing financial control elements, improving the communication mechanism, enhancing the performance of internal auditing sector, optimizing performance evaluation and incentive mechanism, setting the appropriate financial control indicator system. At last, the paper states safeguard measures to support the implementation of the financial control system design.I hope that through the analysis of Weiyi Liuan financial control system, this paper can provide other companies with valuable references about how to improve efficiency of financial control and internal management level for the real estate companies, and make a little contribution to project’s financial control theory.