Five systems of financial management

Everyone is familiar with the five systems of financial management. The position in this department is the place where people have the most contact with the company's money. Although the work seems simple, the knowledge involved in facade is not simple. The following are the five systems of financial management, hoping to let more people know.

Five systems of financial management 1 The five systems of financial management are:

1, comprehensive budget management system

2. Internal control management system

3. Cost management system

4. Financial information management system

5, accounting team management system

Financial management is the management of asset purchase (investment), financing (financing), operating cash flow (working capital) and profit distribution under a certain overall goal. Financial management is an integral part of enterprise management. It is an economic management work to organize enterprise financial activities and handle financial relations according to financial laws and regulations and financial management principles. To put it simply, financial management is an economic management work to organize enterprise financial activities and deal with financial relations.

In modern enterprise management, financial management is a comprehensive and restrictive system engineering. It is a comprehensive management of decision-making, planning and control of capital movement through the form of value, and is the core content of enterprise management.

Five systems of financial management 2 What are the five systems of enterprise financial management? This is not a comprehensive budget management system, internal control management system, cost management system, financial information management system, accounting team management system and so on. That's right! This is indeed the five systems of enterprise financial management. However, we can't treat these five systems in isolation, because they are the organic unity of building financial management.

Let's briefly analyze the relationship between them: cost management system is the foundation, accounting team system is the key, comprehensive budget management system and financial information management system are the means, and internal control management system is the guarantee. Next, briefly analyze one by one, why should we establish a comprehensive budget management system? That is to say, the business objectives and development strategies of enterprises are more related to management level, competitiveness and resource allocation. This is the core value of comprehensive budget management. As an enterprise, can you be careless?

What is the internal control management system? It is an important means of modern enterprise management, and it is also a mechanism to realize self-regulation and restraint of enterprise production and business activities. The success or failure of an enterprise is often closely related to it. The insiders call it: success also controls failure, internal control! As soon as you listen to this term, you will understand more than half of the cost management system. It is an eternal topic of enterprise financial management and an important weight for enterprises to maintain competitiveness. How could you let it slip away!

Some financial experts compare information network to the nerve of enterprise management and development, and it has also become an important part of modern financial information management system. Once the nervous system reacts too slowly, the consequences are unimaginable. What does modern enterprise information management depend on? Handwritten, manual report? What age is it! Too many enterprises have realized the interconnection of enterprise management information through ERP software. For example, SAP ERP software, which accounts for a relatively high proportion in domestic large and medium-sized enterprises, can not only support the flexible and efficient operation of enterprises from finance to all, but also provide reference for data analysis and future innovation from finance to all, which is very convenient. Of course, all this is inseparable from people, which is the significance of establishing a financial team management system. How to manage? Talent advantage needs to be transformed: into a series of competitive advantages such as knowledge, technology and industry. The cultivation and management of talents has become the key. Nowadays, with the help of SAP intelligent financial solutions, many enterprises can predict and actively respond to changing risks and compliance requirements through continuous monitoring and automation functions.

Digital thinking is reshaping social form and corporate governance paradigm. Enterprises are experiencing unprecedented pressure and motivation of transformation and upgrading, and the mode of enterprise finance and financial management is constantly innovating. Based on the organic operation of the five systems of enterprise financial management, it is the essence of enterprise financial management in the new period to constantly improve and give new content and new significance to enterprise financial management. Whether it is the five systems, or organizing financial activities and handling financial relations well, it is not a problem that can be solved in one or two sentences. To achieve excellent enterprise financial management, it will eventually be: an armchair strategist, you never know how to do it!

Five systems of financial management 3 I. Top-level financial design

The top-level design of finance is to make a global layout of all business segments around the strategic and planning objectives of the enterprise, such as whether to set up subsidiaries, taking the form of subsidiaries or subsidiaries, setting up holding companies, joint ventures and affiliated companies, etc.

Second, the financial management system

Enterprise financial management system includes enterprise financial accounting personnel, financial accounting institutions, financial management system and accounting policies.

1. Financial accounting personnel should include chief accountant, chief financial officer, financial manager, chief accountant, bookkeeper, financial analyst, cashier and some internal auditors.

2. Financial accounting institutions mainly refer to the post responsibilities and department settings of enterprise financial accounting. For example, the chief accountant's office, finance department, accounting department, audit department, etc.

3. Financial management system includes business operation rules, internal control system and other comprehensive management systems. It is the chain of enterprise currency flow, the constraint mode of enterprise entity operation, and the software system for financial accounting personnel, financial accounting institutions and other hardware to operate normally.

4. Enterprise accounting policy refers to the norms and strategies of financial management and accounting carried out by enterprises, including cost accounting methods, valuation, depreciation, expense standards, related transactions, tax planning, etc.

Third, the financial control system

Through accounting, financial supervision, cost control, risk early warning, tax calculation and other means, the business activities of enterprises are predicted and planned in advance, controlled and supervised in the process, and managed and evaluated afterwards.

Fourth, the financial accounting system

By establishing a financial accounting system suitable for the company, the company conducts timely and complete financial accounting for its daily business activities around the two core elements of cash flow and financial information.

Verb (abbreviation of verb) tax risk system

The basic requirement of tax risk management is compliance, that is, according to the requirements of tax laws and regulations, correctly calculate and pay taxes on time to avoid underpayment and late payment; A higher level of tax risk management requires enterprises to make full use of the clear preferential provisions of tax laws and policies, make reasonable tax planning under the premise of compliance, controllable tax risks and effective tax risk avoidance measures, avoid unnecessary tax burden and realize the promotion of enterprise value.

VI. Management reporting system

The main purpose of financial management accounting report is to provide relevant decision support for enterprises, such as new product pricing, investment and financing decision, whether to close branches, etc. Therefore, the format and content of management report do not need to meet the requirements of accounting standards. External financial reports can be converted into management accounting reports by EXCEL or system according to the industry characteristics of enterprises and the key points of management's attention, and can be analyzed in depth from multiple dimensions and angles.

VII. Analysis and reporting system

It mainly includes solvency analysis, profitability analysis, asset management level analysis and development ability analysis. Each aspect has different measurement indicators, and comprehensively analyzes and compares the core indicators that enterprises and management are most concerned about.

Eight. Budget management system

Focus on two core elements: cash flow and financial information. Through the implementation of comprehensive budget management, we can clarify and quantify the company's business objectives, standardize the management control of enterprises, implement the responsibilities of all responsibility centers, clarify the responsibilities and rights at all levels, and clarify the assessment basis, thus ensuring the success of enterprises. For the difference between the actual situation and the budget, we should analyze the reasons and improve it in time.