Problems and Countermeasures of Financial Management in Small and Medium-sized Enterprises —— Present Situation of Financial Management in Small and Medium-sized Enterprises

At present, there are still some problems in the financial management of small and medium-sized enterprises in China, which restrict their sustainable development. Discuss the problems and solutions of financial management of small and medium-sized enterprises with me.

Problems in financial management of SMEs 1. Insufficient national policy support.

(1) At present, the state lacks effective policy support for small and medium-sized enterprises. For large and medium-sized enterprises, the state provides various policy support and makes various special regulations to protect the development of large and medium-sized enterprises. There is little policy support for SMEs. Although China has gradually strengthened its policy support for small and medium-sized enterprises in recent years, this support only exists in some scattered laws and regulations, lacking special provisions to promote the development of small and medium-sized enterprises, which is not conducive to changing their weak position.

(2) The state still lacks strong policy support in SME financing and land use. Although the number and total output value of small and medium-sized enterprises have always occupied a large proportion in the total number of enterprises in China, the state still ignores the importance of the development of small and medium-sized enterprises and lacks policy support and protection. For example, loans to small and medium-sized enterprises are small in scale, but the taxes and fees are high, and some local governments even take them as the object of apportioning expenses.

2. Financing difficulties and lack of funds.

(1) On the one hand, the social credit of SMEs is generally low. Due to the small scale of small and medium-sized enterprises, in the current credit rating system of commercial banks in China, the credit of small and medium-sized enterprises is mostly low, which invisibly raises the loan threshold of small and medium-sized enterprises, leading to their financing difficulties and lack of funds. On the other hand, many small and medium-sized quality of enterprise in China are relatively low. For example, the financial statements and balance sheets of many small and medium-sized enterprises are not prepared in accordance with the relevant provisions of China, which easily makes their financial management information less credible. In the increasingly standardized market, many small and medium-sized enterprises do not follow the rules of market economy, and appear bad behaviors such as evading debts and manufacturing fake and shoddy products, which seriously affect their own commercial credit rating, increase the difficulty of financing and increase the funding gap.

(2) Many small and medium-sized enterprises lack funds and guarantees, and the mortgaged assets are insufficient and of low value, which leads to financing difficulties.

(3) Most individual small and medium-sized enterprises lack the ability of sustainable development and cannot achieve sustainable management. Although on the surface, the market group of small and medium-sized enterprises in China is very active and full of vitality, there are still many problems in management and operation from the perspective of individual enterprises. A large number of small and medium-sized enterprises have various problems such as insufficient production capacity, spontaneity and blindness, and insufficient awareness of innovation. These unfavorable factors make China's small and medium-sized enterprises lack sufficient competitiveness, and it is inevitable that many small and medium-sized enterprises will close down one after another. Therefore, considering the great risk of lending to small and medium-sized enterprises with many disadvantages, major commercial banks are reluctant to lend to small and medium-sized enterprises, which increases the difficulty of financing for small and medium-sized enterprises.

(4) At present, the financing of small and medium-sized enterprises in China is characterized by randomness, short cycle, scattered capital demand and large financing amount. In addition, the location of SMEs is not concentrated. In this situation, it is bound to increase the financing cost of financial institutions to SMEs and the difficulty of information collection, which makes the enthusiasm of financial institutions to lend to SMEs decline.

3. SMEs lack effective asset management. (1) There are still many problems in cash management of small and medium-sized enterprises in China. For example, the cash plan is unreasonable and inefficient, the enterprise has insufficient funds or idle funds, the credit management mechanism in the payment link is extremely unreasonable, the credit policy is imperfect, the payment incentive mechanism is unscientific, and bad debts occur from time to time, which greatly slows down the capital flow speed of small and medium-sized enterprises. (2) SMEs are under great pressure because of fierce supply competition. Therefore, when managing accounts receivable and accounts payable, they often deliver goods in advance and delay payment. In addition, most small and medium-sized enterprises have not established a sound credit mechanism, which leads to a serious crisis of trust, a very prominent problem of accounts receivable and accounts payable, and a large number of bad debts. (3) SMEs in China lack sufficient inventory management experience. They use cash as the main way to purchase raw materials, and the financial and sales personnel are not standardized in the settlement of income and expenditure, and they do not record them in time or at all, which makes the funds of enterprises sluggish from time to time.

4. unscientific accounting work. (1) At present, most small and medium-sized enterprises in China have not established a mature and perfect financial management system, and financial management is very irregular. At present, many small and medium-sized enterprises only regard the current economic management system as the basis of their financial management, so it is difficult to form a financial management system suitable for their own characteristics and improve the quality and efficiency of their financial management. Moreover, under the contract mode or property right mode, it is easy to lead to the confusion of financial relations or unclear property rights, which has a great impact on the daily management and future development of enterprises. (2) unscientific and unreasonable accounting statements. At present, the accounting statements of many small and medium-sized enterprises in China are not compiled in accordance with the relevant national laws and regulations, nor can they truly reflect the actual situation of enterprises, which makes the accounting information seriously distorted. In addition, unreasonable quota management and analysis and accounting have exposed the problems existing in the management of small and medium-sized enterprises, and the management system needs to be improved urgently. (3) Lack of perfect internal audit and supervision mechanism.

Reflections on solving the financial management problems of small and medium-sized enterprises 1. The government has increased its policy support for small and medium-sized enterprises. Compared with large and medium-sized enterprises, the government's support and care for small and medium-sized enterprises is still insufficient. However, with the continuous development of small and medium-sized enterprises in China, the government pays more and more attention to the development of small and medium-sized enterprises. In order to make small and medium-sized enterprises have a good development environment, relevant government departments should increase policy support.

2. Small and medium-sized enterprises should enhance their financing ability. (1) risk sharing, scientific analysis and optimization of its own capital structure, on the one hand, we should continuously strengthen its own capital accumulation, on the other hand, we can borrow moderately and reasonably on this basis to solve the problem of insufficient funds for enterprises. (2) Improve the rationality of financial budget and decision-making, gradually expand the scale, adopt diversified development strategies, diversify investment to reduce financial risks, and at the same time strengthen investment analysis and conduct risk assessment on investment. (3) Banks should change their views and attitudes towards small and medium-sized enterprises, appropriately adjust their loan strategies, take patents, inventories and accounts receivable as collateral, and at the same time adjust their credit structure to a certain extent, appropriately reduce the loan interest rate, so as to solve the financing difficulties of small and medium-sized enterprises.

3. Strengthen the management of enterprises' own assets. (1) Optimize the capital structure, conduct scientific and reasonable analysis and evaluation, and adopt appropriate debt methods to improve the capital utilization rate of enterprises. (2) Strengthen the management of inventory and accounts receivable. Minimize outdated inventory, ensure smooth capital circulation and optimize structure. For accounts receivable, it is necessary to establish and improve a scientific and reasonable recovery mechanism, analyze the age of reconciliation and take corresponding countermeasures. (3) Strengthen asset management and control. Establish and improve the internal control system of material management, standardize the procurement and acquisition procedures, separate management from records, and strengthen internal containment. In addition, enterprises should make regular inventory and accounting of assets to improve the quality of property management.

4. Strengthen financial management and supervision, and improve the quality of relevant personnel. Enterprises should strengthen financial supervision, establish and improve a scientific and reasonable financial supervision system, and actively explore new financial supervision methods. In particular, it is necessary to strictly control the enterprise's financial budget and accounting, ensure the timeliness of the enterprise's financial revenue and expenditure audit, minimize financial risks, and ensure the orderly and efficient daily operation and management of the enterprise. In addition, small and medium-sized enterprises should attach importance to talents, recruit financial management professionals, strengthen the training of financial management personnel, improve their professional quality, enhance their business capabilities, reserve talents for the better development of enterprises in the future, and accelerate the pace of modernization.

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