Research On Working Capital Management Based On Business Process

The level of enterprise capital management is directly related to whether the enterprise can achieve the fundamental goal of maximizing value.As an important part of enterprise financial management,enterprise working capital management is an important guarantee and basis to improve the level of enterprise operation and profitability.The traditional evaluation system of working capital management includes cash management,inventory management,portfolio management,accounts receivable and payable management,etc.This evaluation method based on single factor lacks the combination with the actual business of the enterprise and can not fully reflect the management status of the working capital of the enterprise.The performance evaluation method and system combined with business process can be more objective and accurate in evaluating the efficiency of enterprise working capital management,which is closer to the actual operation of the enterprise.The operating capital of the real estate industry has the characteristics of large financing,high inventory ratio and long operating cycle,which makes the management of operating capital more difficult.Based on the theory of working capital management based on business process,combined with relevant theories and performance evaluation system,taking H company of medium-sized real estate listed company as the research object,using the methods of literature analysis,induction and normative analysis,this paper first analyses the basic financial situation of H company,and then uses the performance evaluation body of working capital management combined with business process.Department,respectively,H company procurement,construction,marketing phase of working capital management efficiency is analyzed and evaluated.Through the above analysis,it is found that there are some problems in H company’s working capital management,such as poor sales,serious inventory backlog,single financing channel,excessive cooperative receivables,excessive pre-payment and demolition compensation for long-term accounts,poor quality of property services,and low efficiency of development and construction.Therefore,it is suggested that H company adopt the change of sales strategy,broaden financing channels,and strengthen its cooperation with the government.Improvement measures include strengthening the management of project partners,improving the quality of property services,and strengthening the management of contractors.Finally,through the analysis of H company,it can be seen that the current operating capital management formulas used in various business processes can not fully reflect the efficiency of the company’s operating capital management.Therefore,this paper will revise the original formulas to some extent,such as excluding other receivables,the amount of related parties in other accounts payable,the amount of accounts older than three years in accounts payable,etc.Noise factors.