The role of financial management in property management

On the Function of Financial Management in Property Project Management

Wu Guozhong/China Urban Real Estate Network /2007 1224

As an organic part of enterprise management, financial management plays an obvious and well-known role, because all economic activities of an enterprise will eventually be sorted out in the financial department and the business performance of the enterprise will be reflected by figures, so the scientific application of financial management means plays a very important role in monitoring the efficiency improvement of property management enterprises. Based on many years' relevant working experience and the case of the company, the author discusses the important role of financial management in property management.

As one of the organic components of enterprise management, financial management plays an obvious and well-known role, because all economic activities of enterprises will eventually be summarized and sorted out in the financial department, and the business performance of enterprises will also be reflected by figures, so the scientific application of financial management means plays a very important role in monitoring the efficiency improvement of property management enterprises.

First, narrow the scope of accounting and strictly control financial auditing.

Take the author's company as an example, the finance department should conduct relatively independent accounting for each management office, and the director of the management office should sign the reimbursement within the approved quota. The financial audit adopts "one-stroke audit". The company stipulates that all invoices must be signed by the director of the management office for reimbursement, and the original reimbursement voucher must be reviewed by the financial supervisor with a pen. Beyond the authority of the director of the management office, in addition to the financial supervisor's audit, the general manager needs to sign off. The establishment of this financial reimbursement system is conducive to standardizing the original documents and discovering the loopholes in reimbursement. It is feasible in practice and consistent in scale control for effectively carrying out the saving work of property projects.

Second, financial management is one of the effective tools for property management enterprises to find management loopholes.

Case 1:

On one occasion, a community under the jurisdiction of the author's company came to the company to report the purchase invoice of light bulbs collected in the maintenance fee, but the finance department found that the purchase price was much higher than the usual purchase price, and it was a "Luyuan brand" energy-saving lamp purchased irregularly by the property management company. The buyer described it this way: the light bulb has a long service life and can be replaced within one year, so the price is a little higher than the original price. This explanation seems reasonable, but people in the finance department always think it is far-fetched, so they assign office procurement personnel to investigate the market. The conclusion is that the buyer's statement is true, but the price of light bulbs is "fishy"-the cost price of each light bulb is higher than the market price by 2 yuan. Later, the financial personnel landed on the website of Luyuan brand energy-saving lamps and found that there were special supply points in the local market, so they contacted and negotiated with the person in charge of the local special supply store and agreed on a three-year purchase contract, which made the price of each light bulb cheaper than the market price by 2 yuan, saving some owners 5000 yuan in maintenance costs, and warned and punished the original purchasers.

From this, we can draw inferences from others. If the property management company adopts the way of shopping around for all bulk materials and purchasing by the company in a unified way, and implements the procurement system of fixed point, fixed person and approval by the management director for small commodities with miscellaneous varieties, low value and frequent purchases, it can not only plug the management loopholes of the property management company, but also greatly save the maintenance funds of the owners, improve the social reputation of the property management company and win the praise of the majority of owners.

Third, the daily financial supervision system is a good helper to solve the problem of energy saving and consumption reduction.

Case 2:

In July, 2006, Ningbo raised the standard of water charges, and water supply enterprises adopted a wholesale policy for the water prices of high-rise and low-rise property management companies, giving them a 20% discount (water loss subsidies are not allowed to be shared with the owners). In the past, our company adopted the policy of charging once a year for the water price of high-rise and small-high-rise buildings. As for the loss of water, the owners share it in proportion. Therefore, the owner also complained, and there is no way for the management office to fundamentally solve this problem. However, with the adjustment of the water price charging policy this time, the financial personnel have the idea of "whether a 20% discount can make up for the normal water loss", so the management office is required to compare the meter reading degree of the current month with the practical degree indicated on the water fee invoice and report it to the company in writing. It is found that the total number of water meters copied by the management office is far lower than the number on the invoice of the water supply company, and the 8% water price subsidy can't make up for the water fee loss. Therefore, the property management company immediately asked the management office to hire professionals to check the leaks in the shortest time. As a result, it was found that there was water leakage under the thick cement pavement, so it was repaired immediately. After verification, it was found that the water leakage was left over by the real estate development company during the construction period. No wonder the original owner reflected so much! The property management company will directly contact the real estate development company and demand to make up for the water loss. After many discussions, the real estate development company finally promised to make up some losses to repay the owners, which calmed the complaints of the owners for more than two years. (Note: Ningbo adopts secondary water supply for high-rise buildings and small high-rise buildings. The water supplier only copies the summary table and collects it from the property management company according to the summary table. The property management company will copy the summary table and collect the amount from the owner. )

Fourth, financial planning is an effective means to control the cost of property management.

The author's company's economic target management method for the residential areas it manages is as follows: at the end of the year, the management office reports the number of personnel for the next year and approves various expense plans. At the beginning of next year, the financial department will analyze and compare the year-end final accounts of various communities to determine the implementation of various financial indicators. The general manager signed an economic responsibility target assessment task book with the directors of each management office, which defined the responsibilities and authority of the directors of the management office. The director of the management office is the first person responsible for the assessment of financial indicators, and all the cost indicators, economic benefit indicators and reward and punishment indicators are directly linked to the economic interests of the director of the management office, so as to strengthen the responsibility of the director of the management office for the cost of the community and ensure that the company can successfully complete various economic indicators issued by the board of directors.

Five, strict financial management, strengthen daily monitoring.

Although every management office has economic indicators assessment, there are still some shortcomings in energy saving and consumption reduction. For example, there is a lack of monitoring of recipients of public maintenance materials, an effective accounting of energy consumption comparative indicators, and inadequate management of consumables. For this reason, the company directly sends financial and accounting personnel to various management offices, asking them to establish a registration and requisition system for various spare materials; Reimbursement requires a project dispatch list, as well as a write-off system signed by the administrator on site and approved by the director of the management office; At the same time, each management office is required to declare the public maintenance expense account that does not involve the company's cost every month, collect the water and electricity expense account paid on behalf of the company, compare and analyze it in time, and urge and correct the problems in time when found, which greatly promotes the company's energy saving and consumption reduction work.

Six, make full use of financial historical data, strictly control the renovation cost of the new project management office.

At present, the newly delivered buildings in Ningbo are all blank houses. Therefore, when the property management company takes over, it must carry out functional layout and decoration according to the characteristics of its actual operation. The decoration of each management office is a valuable expense for the property management company. Therefore, the author's company has formulated the principle of bidding based on historical cost and according to the market decoration price information appropriately. The decoration price of the winning company is naturally the market price or more favorable than the market price, thus saving the decoration cost of the property management office.

To sum up, as long as the financial management means are properly used, there is still much to be done to save energy and reduce consumption in the daily economic activities of property management, which will play a great role before, during and after the event, not only improving the economic benefits of property management companies, but also improving their social benefits (mainly the use of public maintenance funds).