The Research & Improvement Of Cash Flow Management Methodology In S System Integration Company

After 2010, Chinese system integration industry moves to rapid growth period. The merge and acquisition become to the future trend. As to those relatively weak company on capital and technology in integration system industry, it’s worth to study how they can survive and progress in merging pressure. System integration business has its special characteristics, which is projects need to pre-pay much purchasing capital of machine and material, long project duration, and accounts receivable is hard to be fully paid back. These disadvantages are always challenging small system integration companies. It should be preferred methodology which is addressed from improving cash flow management internally.S System Integration Company was facing the capital chain breaking risk due to weak mind and process of cash flow management. This thesis will focus on S company as study case. Design a cash flow management system based on project management feature, which start from system integration business characteristics. Improve the cash flow management methodology of S Company during project bidding phase, kickoff phase, running phase, and settlement phase in project lifecycle.The improved bidding phase cash flow management emphasize on capital forecast. The capital forecast is categorize to capital pressure forecast and capital cost forecast. The capital pressure forecast makes company be possible to aware the available amount of capital in fixed future time line. The capital cost forecast helps company to choose the best performance of capital utilization while multiple potential projects bidding happen nearly in same time. The cash flow management in project kickoff, running, settlement phases focuses on capital control. In project kickoff phase, the methodology break down project cash flow-in, cash flow-out to every month by budget checking and budget break down. This forms monthly capital budget. In project running phase, real-time monitoring cash flow-in and out by payment collection management and expense controlling. Meanwhile use Earned Value Analysis to warn risk of capital net flow out. In project settlement phase, update settlement data with capital cost to reflect capital utilization effect. Relate payment collection to sales staff’s salary and performance bonus so that encourage their working positivity in payment collection.This paper devotes to the cash flow management research of system integration companies. In study process, not only combine cash flow management with project management, while conclude cash flow control key points in all project management phases and provide related improving method, but also propose to start cash flow management from project bidding phase instead of project initial phase, which change previously passive situation of much late involving. These researches of paper possess strong pertinence and practicability. It’s more effective to guide cash flow management of similar companies.