资金管理的关键：现金流英文参考.doc

THE KEY OF MONEY MANAGEMENT: CASH FLOW “Cash is king” has been considered to be the center philosophy of enterprise capital management for a long time. Enterprise cash flow management decisions are always be the key to corporate survival. Facing increasingly fierce market competition, the survival environment of business is complex and changing. Through improving the management of corporate cash flow, we can control the operational risk reasonably and enhance the overall efficiency of the use of funds, which will accelerate the enterprises own development. Cash and cash flow Cash flow is an important concept of modern science. It means, in a certain accounting period, in accordance with the cash basis, the cash inflow, cash outflow and the total amount of them that generated by enterprise’s certain economic activity (including business activities, investment activities, financing activities and non-recurrent items). Namely: the number of cash and cash equivalents of the inflow and outflow in a certain period. Usually the ‘cash’ form the cash flow management, is not mean handheld cash as we understand, but the corporate cash on hand and bank deposits. It also includes other currencies, funds and cash equivalents. Cash is not equivalent to profits It is known that enterprise is to take gaining a profit as the purpose. Currently there is also some enterprise painstakingly running after high avails and high profits. Therefore sometimes, there will be such a kind of wrong thought, thinking that enterprise profit demonstrating high number is the performance of the effectiveness of the operation, and mostly will ignore the liquidity that ought to be precipitated in profit. As an enterprise money director, people should be able to distinguish the difference between cash and profit adequately and correctly. Profit does not mean that businesses have ample current capital. Current capital is what we commonly known as the cash flow, which plays an important role for the healt