Cash flow analysis within the framework of internal control and crisis management in an enterprise

Abstract

This article aims to summarize the theoretical principles and practical approaches to analyzing cash flows within the framework of internal control and crisis management in an enterprise, and to justify their significance for ensuring financial stability and improving the effectiveness of management decisions. To achieve this objective, a range of established scientific methods was employed during the study: generalization methods were used to summarize theoretical approaches to the analysis of cash flows within the internal control system, as well as to draw general conclusions; the comparison method was used to contrast different approaches to assessing cash flow movements and to identify the specific features of their analysis within the internal control system and crisis management of an enterprise; the structural-functional analysis method was applied to study the internal control system as a component of crisis management; the systems approach was used to examine cash flow analysis as a subsystem of internal control. In addition, methods of logical generalization and analysis were employed, enabling the formulation of well-founded conclusions regarding the effectiveness of cash flow analysis within the internal control mechanism.  Results. This article examines the nature of cash flows and their significance within an enterprise’s financial management system. It identifies the role of cash flow analysis in ensuring internal control, financial security, and crisis management within the enterprise. It is argued that cash flow analysis is a more objective tool for assessing an enterprise’s financial condition compared to accounting profit indicators, as it is based on actual financial transactions. It has been established that an effective system of internal control over cash flows contributes to improving the quality of management decisions, strengthening financial stability, and minimizing crisis risks. Conclusions. In the current economic instability, cash flow analysis is a vital tool for internal control and crisis management, enabling the assessment of a company's liquidity, solvency, and financial stability based on actual financial transactions. The use of cash flow analysis methods facilitates the timely identification of financial risks, enhances the effectiveness of management decisions, and ensures the enterprise's long-term financial stability.