Research On The Management Of Working Capital In BE Construction Enterprises

The construction industry is the pillar industry of China’s national economy,with the reforming and opening up,and the process of modernization,the construction industry ushered in the peak of its development.However,under the impact of some changes of the national policy,which the investment in fixed assets was been slowed down,the profits of the construction industry began to fall sharply,at the same time,competition in the construction market had been more and more fierce,in order to contract more projects,the construction enterprises had to accept the requirements of Party A which advanced funds for construction.The consequence is that a large number of accounts receivable and even bad debts was been formed,and led directly to the construction enterprises lack of funds and turnover difficulties.It was an urgent need that the construction companies adopted an effective management of funds to solve the problem.Working capital is the core of capital management,therefore,construction enterprises should strengthen the management of working capital,which would have an important impact on the enterprisesSo this article based on the construction industry,the BE construction enterprises as the actual case study object,through field investigation,case analysis,literature research to study the working capital of the BE enterprise.First of all,the composition of the of working capital of the enterprise were analyzed,the size and structure of working capital were regarded as a starting point,at the same time,combined with the working capital management system and methods of BE enterprise.Secondly,based on the analysis about the safety operation index and circulation efficiency index,which founded that the problems in the working capital management,included the monetary funds,accounts receivable and inventory.Finally,in view of these three problems,put forward specific measures.Through the investigation on the current situation of the construction industry,the author from the perspective of working capital,analysed the problems in the process of working capital management of national construction enterprises,the author suggested that the building enterprises should attach importance to the key projects of working capital management and could provide reference for the management of working capital in the current construction industry.