What is the significance of enterprise financial management to enterprise development?

The significance of financial management

First, financial management is not the maximization of book profit, but the maximization of enterprise value.

Financial management is managed from the perspective of funds, emphasizing the appreciation of funds under the condition of a virtuous circle of funds. More and more people evaluate the quality of enterprise management from the operation of enterprise funds. The high book profit may cover up the fact that the company's capital turnover is poor. For example, the existence of a large number of overdue accounts receivable, on the one hand, leads to the risk of bad debts, on the other hand, makes the company's book profit considerable, but there is no money available, investors can't get dividends, and creditors due can't get back the principal and interest. For another example, the pursuit of immediate profits is prone to short-term behavior, which makes the strategic decision-making of enterprises lack foresight, blindly produce and invest, resulting in a backlog of products. Although the account shows considerable current assets, the investment cannot be recovered, which affects the sustainable operation of the enterprise. Therefore, the goal of enterprise financial management is not to maximize the book profit, but to maximize the enterprise value, that is, to achieve long-term stable profits and bring net cash flow.

Two, financial management can not simply emphasize reducing costs, expenses and expenses.

Cost management is one of the key points of financial management. In the traditional sense, cost management is to save costs and reduce expenditures. Yes, reducing costs will inevitably increase profits, but increasing costs does not mean that profits will definitely decrease. Market economy emphasizes the market. Under the control of the market mechanism, the price changes and the cycle of product upgrading shortens, which makes the product cost in different periods have many incomparable factors. If we simply emphasize cost reduction, the production technology of enterprises will stagnate, the quality of products will not be guaranteed, and the market will be missed because of lack of competitiveness, which will shake the survival foundation of enterprises strategically. Therefore, cost management in the financial sense is cost-effective management, that is, saving those inefficient costs, controlling those poorly managed expenses and reducing those unnecessary expenses. Expenses that can bring structural upgrading, improve product quality, market competitiveness and economic benefits to enterprises, and enable enterprises to continue to operate and flourish for a long time must be guaranteed.

Third, attaching importance to financial management is not to ignore and deny the role of other management work in enterprises.

Focusing on financial management and emphasizing the central position of financial management is by no means ignoring or denying the role of other management work in enterprises. In order to realize their own survival, development and profitability, enterprises carry out various kinds of management, and financial management is one of them. Just because of the requirements of social and economic development and the characteristics of financial management itself-it guides the in-depth development of various management work with the concept of value management, comprehensively reflects the process and final results of various management work, and determines its central position in various management work. However, the completion of financial planning indicators, the realization of financial management goals and even enterprise goals still depend on the matching of specific management work of enterprises, such as production management, quality management, technical management and so on. Other management work and financial management of enterprises are not independent and separated from each other, but should penetrate each other, and the overall goal of enterprise management is guided and realized by the idea of financial management. Without the coordination of other management work, financial management is a castle in the air; Without the guidance of financial management, other management work is blind.

Fourth, financial management is not just a matter for the financial department.

Enterprise management focuses on financial management, and should pay attention to the following work:

(1) Establish and improve the management system with financial management as the core. All the management of an enterprise (such as production management and quality management) should serve and obey the business needs, which is conducive to improving work efficiency and economic benefits, and can not engage in formalism, let alone fight alone. They should take financial management as the core and complement each other. Coordinate and connect with each other, and the change of a single management system or method should consider its influence on the whole management system as a whole.

(2) Establish and improve computerized management of accounting information and statistical information. Pass quickly. Efficient computerized management can timely and objectively reflect the production and financial situation of enterprises, analyze thoroughly, find out the weak links in management, put forward measures, plug loopholes and improve efficiency.

(3) All decisions, including financing decisions, investment decisions and business decisions, should be made on the basis of ensuring the sustainable operation and development of the enterprise. For its development goals, enterprises should do what they can, balance the relationship between immediate interests and long-term interests, fully consider various influencing factors, and conduct rigorous feasibility analysis and cost-benefit calculation with scientific methods. A mistake in a project or a link may destroy the wealth accumulated in decades.

(4) Strengthening cost management to ensure that normal production and operation need new profit sources; On the other hand, we should constantly analyze and adjust the current profit structure, especially strengthen and expand the real main business profits, avoid short-term behavior, and ensure and improve the quality of profits. A typical case is that at present, individual listed companies sell a large number of products to holding companies through related party transactions in order to modify the current profits and achieve the purpose of turning losses into profits and allotment. Disposal of assets or transfer of subsidiaries not only distorts the profit generation mechanism, affects the gold content of profits, but also brings difficulties to the future operation of holding companies.

(5) Strengthen risk management. The market has always had both opportunities and risks. The caution of low risk and low return and the temptation of high risk and high return often make enterprises face a dilemma when making decisions. Risk management is particularly important. It is the common pursuit of modern enterprises to fully measure the degree of risk, combine their own tolerance, weigh the gains and losses through comparative analysis, choose the best scheme, and obtain greater benefits with less risk. However, it should be noted that before making a decision, a series of preventive and preservation compensation measures should be formulated for different risks, so that enterprises will not panic and be helpless when risks appear.