Cash flow management is directly re

Cash flow management is directly related to financial risk and the direction of the enterprise's development. Cash flow management of an enterprise can provide a valuable decision-making basis for enterprise managers and further increase the efficiency of accounting management. Effective cash flow management can increase the efficiency of capital turnover and capital use. It reflects the solvency of a company more realistically than cash profits. The liquidity of an asset determines the solvency of a company. The more cash a company spends, the stronger its solvency. Although enterprises can obtain funds through external financing methods such as debt and securities issuance, this external financing method is not suitable. Funding is relatively limited,