THE DIRECTIONS OF IMPROVEMENT OF CASH FLOWS MANAGEMENT OF INDUSTRIAL ENTERPRISES IN THE LVIV REGION

Abstract

In modern business practice of industrial companies cash flows occupy the main place. Cash flow provides liquidity, solvency, profitability, financial activity оf modern companies. Effective cash flow management promotes expanding financial activity of the companies and ensures its development. All cash flows (incoming and outcoming) of Lviv region industrial companies are shown and documented in the statement of cash flows. In the Ukrainian financial statements it corresponds to form № 3. In Ukraine the information about financial state and cash flow statement of industrial companies is public. Cash flow is key indicator of financial state in every company. Cash flow allows industrial companies to react more flexibly to problems, marketing decisions or credit problems. At some point, positive cash flow helps modern companies to survive on the financial market, produce good quality products or services. For modern Lviv region industrial companies effective cash flow management is important. The main goal of management is to ensure growth of incoming cash flows and establish financial equilibrium in income and expenditure. It is important to define and follow the next principles: certainty, informativity, liquidity, efficiency, respectability. For effective functioning of industrial companies it is important to carry out constant monitoring of cash flow. It is important because it allows to insure attraction of investors, provide complete and accurate information, produce quality products. Also, the level of out coming cash flow of the companies has influence on wages, taxes, loans and investments in Lviv region.