An Investigation into the Problem of and Countermeasures to the Cash Flow Management of Chinese Enterprises

Cash flow management is an important component of the financial management system of a company, and a smooth cash flow can effectively guarantee the sustainable development of the company. Therefore, the core position of cash flow as established in the financial management system of a company will effec tively avoid the adverse effects brought by the profit-orientated management within the company. When it comes to the cash flow management of Chinese enterprises, the following measures should be taken: first, integrate the management of both cash flow and profit flow to harmonize internal cash flow management and external cash flow management; second, establish a highly operable cash flow management system to manage cash flow affairs in an all-round way; third, strengthen the budget management of cash flow; fourth, improve the supervision mechanism targeted at cash flow management; and fifth, create a model of internal cash flow management for Chinese enterprises.