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Discussion on cost control countermeasures of property enterprises

Discussion on cost control countermeasures of property enterprises

In study and work, everyone will come into contact with papers to a greater or lesser extent, and use them to discuss problems and conduct academic research. Do you know how to write a good paper? The following is a discussion draft on the cost control countermeasures of property enterprises, which I compiled for you, for reference only, and you are welcome to read it.

With the acceleration of national urbanization, the socialization of logistics management of the government and state-owned enterprises and institutions is constantly advancing, and the demand for service-oriented enterprises such as property management is increasing, which brings certain development opportunities to the property industry. However, there is a strong demand for high-end managers and low-end service personnel in the industry, and the disappearance of China's demographic dividend has also led to an increase in labor costs in this industry. In order to better cope with the pressure of market competition and broaden the profit space, property enterprises must constantly meet the needs of customers, innovate the cost control mode, strengthen the cost control of property services and operation management, and realize the transformation and upgrading of enterprises.

[Keywords:] property enterprises; Cost control; cost control

1, the basic characteristics of cost management of property enterprises

First, labor costs account for a relatively large proportion. Property enterprises have gradually expanded from traditional business management of some commercial real estate and houses to government administrative properties and large-scale public construction properties (such as airports and venues). ), campus property, industrial park property, hospital property, etc. Non-residential property projects have developed rapidly in recent years. The content of its cost control is also based on the level of business services. Such as real estate management, house internal management, public facilities operation management, safety inspection, cleaning and environmental protection management. , often need to invest a lot of human resources, which makes the cost of human resources consumption accounts for a relatively large proportion in property enterprises. If the enterprise has unreasonable labor allocation, it will inevitably lead to the waste of funds.

Second, the maintenance and operation costs are high. In addition to the cost of human services, the management of property enterprises also needs to invest in higher maintenance and operation costs. In the actual business process, the objects that enterprises need to maintain and manage include office buildings, commercial houses and related facilities and equipment. The maintenance cost of real estate and the energy consumption cost of commercial building operation are both important contents of the cost expenditure of property enterprises.

Third, the cost management is complicated. The content of cost management of property enterprises is complex, involving a wide range, and the cost expenditure items are scattered, including: basic salary and welfare expenses of managers, management and maintenance expenses within the jurisdiction of the property, cleaning and sanitation expenses within the jurisdiction of the property, public security management and public order maintenance expenses, greening and cleaning expenses, maintenance and management fees of public facilities, office expenses, etc. [ 1].

2. The main problems existing in the application of cost management in property enterprises.

(1) The concept of cost management lags behind. At present, some enterprises often control their costs by saving costs, and the foothold of cost management lies in the internal management level of enterprises, ignoring the external value chain control of enterprises. The cost of property service is closely related to factors such as building scale, design characteristics, layout selection, green area and project quality. All unreasonable design layout or buildings with poor engineering quality will increase the difficulty of property management and increase the service cost.

(2) The cost management method is solidified. Common cost management methods include target cost method, activity-based cost method and planned cost method. In practical application, these methods need to combine the business needs of enterprises, comprehensively measure the advantages and disadvantages of management methods, and choose the appropriate management methods [2]. However, in practical work, many property companies are too rigid in the application of cost management methods, and only adopt a certain management method mechanically, such as artificially reducing personnel and posts, which can not improve the adaptability of cost management, achieve better cost control effect and reduce the quality of property services.

(3) The staff turnover cost is too high. Property enterprises belong to labor-intensive enterprises. According to the industry development reports issued by China Materials Association over the years, the labor cost accounts for more than half of the total cost. In recent years, the economic benefits of most property management enterprises have been in a state of meager profit for a long time, but low salary and extensive management mode are common problems in property management enterprises. The wage gap in first-and second-tier cities and the great pressure of living expenses make ordinary service personnel tend to turn to other industries with relatively high salary levels, which further causes the shortage of manpower in this industry. This has also caused the high turnover rate of service personnel in enterprises. The high turnover rate of employees will not only affect the normal business activities of enterprises, but also increase the replacement cost of human resources and bring certain economic losses to enterprises.

3. Effective strategies for property enterprises to improve cost control.

(1) Update the concept of cost management and improve the cost management system. In the process of cost management, property enterprises should analyze the feasibility of cost management mode based on strategic cost, and compare project cost factors and benefit factors to maximize the economic benefits of enterprises. At the same time, in the process of reconstructing the cost management system, enterprises should also vertically analyze the external value chains such as industries and competitors according to the actual situation of enterprise development, and choose the appropriate cost management target system for different types of project service needs. In addition, cost management is separated from the financial department, and the cost control team is composed of personnel from the financial department, business department and human resource management department, which creates a good environmental foundation for cost management.

(2) Comprehensive use of management methods to improve the effectiveness of cost management. In order to cope with the current market environment of property services, property enterprises must adopt a management mode combining various cost management methods to enhance their market adaptability. For example, property enterprises can use planned cost method to manage the cost in material procurement; In the early intervention, the target cost method can be used to control the cost of property services; In the application of service business, monitor every cost expenditure in real time. Of course, when choosing cost control methods, enterprises must flexibly use cost management methods according to the actual situation of the project to gradually realize the cost control objectives. For example, using the intelligent Internet big data platform, the system can provide timely warning for energy consumption and material consumption that are beyond the norm.

(3) Strengthen the function of cost budget and attach importance to cost analysis. Cost budget management is a systematic work, which requires the whole process control of business process and the participation of all internal employees. Reduce unnecessary' costs and expenses' through pre-prediction, in-process control and post-event feedback on various business activities and economic decisions of enterprises. In the process of cost budget management, property enterprises should first determine the annual business objectives and budget cost data, with the assistance of the cost calculation center, prepare the business plan for the next year according to the cost accounting data of the previous year, and refine the cost budget quota to various functional departments and responsible positions to ensure the rationality and standardization of each budget expenditure. In addition, property companies should attach importance to cost analysis, that is, based on cost accounting data, through comparison with previous operating costs, budget implementation, industry standard costs and other contents, systematically analyze various factors of cost changes, and reasonably evaluate the results of budget control, so as to provide information basis for enterprise cost planning design and business decision [3].

(4) Realize the whole process cost control. In the early intervention stage of property management, property enterprises should attach great importance to the intervention of property planning, design and construction stages, focusing on facilities and equipment configuration, green area, property entrance and exit setting and project quality supervision, ensuring the rationality of property service function setting, paying attention to project quality problems and effectively controlling the later operating costs; In the subcontracting stage of special services, property management enterprises can subcontract some special services such as cleaning and maintenance to professional companies, with safety management as the core, maintaining and increasing the value of real estate and improving customer experience as the breakthrough point of quality services, and focus more on customer service management, internal management of enterprises, market development, business decision-making and other links to improve the professional level of property services; From the aspect of service quality, enterprises can make full use of information technology to optimize internal organizational structure and workflow, or adopt mechanized means to meet simple manual operation procedures and reduce dependence on human resources; From the aspect of business development, the business development of property enterprises must keep up with the needs of the times, and provide diversified services for customers with different needs on the basis of conventional services to enhance customer satisfaction. Through the improvement of service quality, we can broaden market share and increase brand awareness, thus reducing costs and increasing efficiency.

(5) Implement the people-oriented management concept and reduce the cost of employee turnover. In view of the high turnover probability of property-based enterprises, on the one hand, enterprises should establish a perfect salary management mechanism to objectively and reasonably assess and evaluate employees' work performance, create a relaxed and happy working environment for employees while striving to meet their material needs, and enhance their sense of belonging and responsibility; On the other hand, enterprises should also establish an effective cost management incentive mechanism, mobilize the active participation of grass-roots employees, directly link the enthusiasm and creativity of employees with salary growth and job promotion, give play to the linkage between enterprise benefits and employees' interests, and enhance employees' trust and loyalty to the enterprise.

4. Conclusion

To sum up, property companies should change the concept of cost management, improve the cost control system, use cost management methods scientifically, and give full play to the role of cost budget control, which will be the inevitable need and the same choice for enterprises to remain invincible in the fierce market competition.

Step 5 refer to

[1] Shen Yisheng. On the cost control of property management enterprises [J]. Accounting for Township Enterprises in China, 2017 (12):150-151.

[2] Yu Yu. Analysis on cost control of property management enterprises [J]. Western Accounting, 20 17(7):55-58.

[3] Fuck you. Problems and Countermeasures in Internal Control Management of Property Enterprises [J]. Contemporary Accounting, 20 19(5).

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