The role of financial management in enterprise management

The role of financial management in enterprise management

At present, most enterprises in China are facing the pressure of transformation and upgrading under the new economic normal, and the position of financial management in enterprise management needs to be further clarified in order to achieve the goal of maximizing enterprise value. Here are some related materials I shared for your reference.

I. Introduction

As we all know, at present, China is in the background of the new economic normal, and most enterprises are facing the pressure of transformation and development, and risks and opportunities coexist. The internal governance of enterprises and the optimization of external environment are inseparable from the important role of financial management. In addition, with the increasingly fierce market competition and the improvement of modern enterprise management system, financial management plays an increasingly important role in enterprise management. Financial management is the core of enterprise management, and the perfection of modern enterprise management system gives new connotation to financial management. Therefore, it is of great practical significance to study the importance of financial management in enterprise management.

Second, the connotation and content analysis of financial management

1. The connotation of financial management

To put it simply, the financial management of an enterprise is a series of fund management activities around the maximization of economic interests of the enterprise, involving many links such as market investment, financing, debt management and profit management of the enterprise. For enterprise management, financial management can analyze the internal operation of enterprises, as an important basis for analyzing the external market environment, and plays an irreplaceable role in enterprise management.

2. Content analysis of financial management

Under the new accounting standards, accounting has been given a new role, that is, from a single financial accounting to management accounting. At the same time, for financial management, financial management will assume more important responsibilities on the basis of single fund management. Based on the relevant requirements of the new accounting standards, the current financial management mainly involves four links: enterprise investment management, fund-raising management, capital operation and profit distribution, among which capital operation management is the basis of daily production and operation of enterprises. First of all, as far as investment management is concerned, the direction, scale and mode of market investment need financial management to conduct pre-market research and internal accounting analysis, balance the relationship between investment risk and investment income through financial management, and ensure the stability of daily operation and the realization of the goal of maximizing economic benefits of enterprises; In addition, as far as financing is concerned, the market development strategy of enterprises needs financing, but the type, scale and cost of financing need to be accurately verified. While optimizing the capital structure of enterprises, we should ensure the lowest financing cost, and the financial management of enterprises should be consistent with the market development strategy of enterprises. Finally, as far as profit distribution is concerned, the efficiency of enterprise management needs to balance internal interests and external interest groups, such as the distribution of interests between employees and shareholders, and the division of external direct interests and external interest-related groups, such as enterprise investors. Thus, the importance of financial management determines that it is at the core of enterprise management.

Third, the current business management in China's financial management problems

1. Lack of fund management and poor budget management.

Although China's current enterprise management mode and level have changed significantly, there are still some problems in financial management, such as lack of fund management and poor financial budget management, under the fierce external market competition environment. It is mainly manifested in the problems of unclear accounts and loopholes in approval procedures in enterprise fund management, which leads to unreasonable income and expenditure of funds. In addition, there are extensive management modes such as cost budget and management budget in budget management, so it is difficult to maximize the economic benefits of enterprises in the face of fierce external market competition.

2. Insufficient attention to financial management and imperfect management system.

At present, China's enterprise management does not pay enough attention to financial management, and the management system is not perfect, which is mainly manifested in the deviation of the positioning understanding of financial management, which still stays in the traditional financial accounting model, does not extend to the management-oriented financial role, and there are still irregularities such as one person with more posts. In addition, the formulation of various laws and regulations in the financial management system has not been evaluated accordingly, and the effectiveness of the financial management system is poor, which hinders the overall efficiency of enterprise management.

Fourth, measures to improve the importance of financial management in enterprise management

1. Strengthen fund management and internal control system.

In view of the deficiency of financial management in enterprise management, this paper thinks that it is necessary to strengthen fund management and internal control of enterprise management. Fund management is the basis of daily production and operation of enterprises. Therefore, it is necessary to introduce activity-based costing to define the daily management cost of enterprises, analyze the capital management of enterprises from various production and operation activities, and manage the whole capital chain from investment, financing and profit distribution. In addition, the internal control system of enterprise management mainly needs to strengthen the supervision and restriction of financial management and establish a risk control mechanism of financial management.

2. Improve the level of financial management and optimize the management mechanism.

Based on the core position of financial management in enterprise management, financial management risk will directly affect the sustainable development of enterprises, so it is necessary to further improve the level of financial management and optimize the management mechanism. To improve the level of financial management, we must put people first and establish an evaluation mechanism of financial risk management, such as establishing indicators of financial management level. In addition, under the current modern enterprise management system, China's enterprise property rights need to be further clarified, so financial management will directly promote the optimization of modern enterprise property rights structure and improve enterprise management.

3. Improve the overall quality of financial management personnel and strengthen skills training.

The promulgation of "New Accounting Standards" further clarified the core position of financial management in enterprise management. Therefore, it is urgent to further improve the comprehensive quality of financial managers and develop the transformation of financial management into management roles and functions, so enterprises need to strengthen skills training. Only in this way can we improve the efficiency of enterprise management, such as fund management efficiency, fixed assets management and investment management.

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