The current situation of financial management of small and medium-sized private enterprises

At present, in the increasingly fierce market competition, private enterprises with its ability to adapt to the survival of the environment, to show people its tenacious vitality. Private enterprises "small boat good head", the operating mechanism is more flexible, adaptable, less capital consumption, investment, quick results, and has a complex economy, a wide variety of products, the number of enterprises and the distribution of a wide range of characteristics, they have supported the sustained growth of the economy for a considerable period of time.

I, private enterprises in the financial management of the problems and causes of analysis

As we all know, enterprise management, including production management, marketing management and financial management and so on many aspects, and financial management is the core of the enterprise's entire management system, the enterprise's financial management objectives that is the goal of the enterprise to pursue. Visible, only to financial management as the center, coordinated operation of all aspects of the management system, in order to effectively strengthen enterprise management, promote enterprise development. From the country, the number of private enterprises, widely distributed, different characteristics, coupled with the macroeconomic environment and institutional impact, private enterprises in strengthening financial management has encountered certain resistance, for example: the policy of "discrimination" so that private enterprises and large-scale enterprises can not compete fairly, the local government, the intervention of the industry management department, so that the financial management of the private enterprises of the goal of short-term, and then the main is that the financial management of private enterprises is subject to the owners' financial management. Private enterprise financial management by the owners of the influence of some subjective factors, resulting in the importance of financial management is ignored. Therefore, its financial management problems are also diverse, I think, the prevailing problems and reasons are:

(a) financing difficulties, insufficient working capital, so that the financial management into a broken source of the lake.

At present, China's private enterprises have initially established a more independent, diversified channels of financing system, however, financing difficulties, difficult to guarantee, is still the most prominent constraints on the development of private enterprises, the main problems are: First, too much debt, high financing costs, high risk, resulting in private enterprises with low credit ratings, relatively poor creditworthiness. Secondly, most of the private enterprises are non-large enterprises, and some banks are not enthusiastic enough to lend to them due to the influence of traditional concepts and administrative intervention. Third, the intermediary institutions are not sound, the lack of financial intermediaries and loan guarantee institutions specializing in loan services for private enterprises.

Analysis of the main reasons for its performance in two aspects: First, the financial sector to private enterprises is not enough credit support. China's financial system from the setup to service projects, mostly to large enterprises as the object of service, private enterprise credit services are often neglected. As a result of the loan is difficult, the production and operation process requires insufficient funds, greatly restricting the development of private enterprises. Some private enterprises, although there are temporary difficulties, but once the bank support will be able to come back to life; Secondly, the financing channels of private enterprises is a single, difficult to adapt to changes in market demand. As there are private enterprises, in neither the bank loan support, but also does not have the ability to self-financing or public financing to the community, invariably, to strengthen the financial management of enterprises has become an empty word, financial management has become a broken source of the lake.

(ii) weak financial control, lack of science, making financial management difficult.

Most of the private enterprises have a weak financial control link, and to strengthen financial management is not enough attention, not from the real sense of understanding the position of financial management in the enterprise. The main problems are: First, poor fund management, weak financial control, resulting in idle or insufficient funds. The second is the slow turnover of accounts receivable, resulting in difficulties in the recovery of funds. Third, weak inventory control, resulting in stagnant funds. Fourthly, money is emphasized over material, and the loss of assets is serious.

Analysis of the reasons are: First, some private enterprises that the more cash the better, resulting in a large amount of cash did not participate in the turnover, there is a lack of funds for the planning arrangements, the acquisition of real estate in excess, so that the enterprise can not cope with the operation of the much-needed funds, into financial difficulties. Secondly, there is no strict credit sales policy, the lack of strong measures to destroy the receivables can not be honored or the formation of doubtful accounts. Third, many private enterprises end of the month inventory occupied funds often more than twice its turnover, resulting in stagnant capital turnover failure. Fourth, many private enterprise managers, raw materials, semi-finished products, fixed assets and other management is not in place, no one to pursue the problem, a serious waste of assets. Analyze the above reasons, the most important is because the upper echelon of business leaders backward financial management concepts, the lack of science, in the mind does not really understand the role of financial management to make a bigger and stronger business, not the financial management into the effective mechanism of enterprise management, the lack of modern financial management concepts, so that financial management has lost its due status and role in enterprise management, difficult to move forward.

(C) the management mode of frontierization, management concepts old, so that the financial management of darkness.

Because for a long time in the ideological constraints of the old financial system, the concepts of business managers are lagging behind. The main problems are: First, the investors of the enterprise at the same time is the operator. Secondly, the management ability and management quality of enterprise managers is poor, and the management idea is backward.

Analysis of the reasons for this is: the typical management model of private enterprises is highly unified ownership and operation, enterprise investors at the same time is the operator, this model is bound to bring negative impact on the financial management of enterprises, a considerable part of private enterprises belong to the individual private nature of these enterprises, business leaders in these enterprises centralized phenomenon is serious, and the theoretical approach to financial management of a lack of due Knowledge and research, resulting in their responsibilities are not divided, act beyond their authority, resulting in chaotic financial management, financial monitoring and verification is not strict, accounting staff can not go alone, want to standardize the management is difficult. Most enterprises do not have or can not establish internal audit department, even if there is, it is difficult to ensure the independence of internal audit. In addition, some enterprises have not financial management into the effective mechanism of enterprise management, the lack of modern financial management concepts, most private entrepreneurs have not yet established such as time value, the value of risk, marginal cost, opportunity cost and other concepts of scientific management, due to the management model of frontierization, management concepts old, so that the financial management of the darkness of the loss of the status and role it should be in the management of enterprises.

Two, strengthen the financial management of private enterprises countermeasures

To solve all the problems in the financial management of private enterprises, it is necessary to redesign the enterprise financial management model to adapt to the current changes in the competitive environment of enterprises. I think the existing private enterprises to strengthen financial management, must start from the following aspects:

1, the government actively support, develop and improve the development of financial policies

Reform practice has proved that the private enterprises are generally faced with financing difficulties, if you rely solely on the "small" policy is not enough, we must implement the reform and support of the dual policy.

First, the financial sector to raise awareness and change the concept. In response to the financing difficulties of private enterprises, financial institutions should change their mindset, should be fully aware of the importance of supporting the development of private enterprises, recognizing that the revitalization of any enterprise is a contribution to society. In the actual financial support, effectively according to who has the conditions to encourage the development of who, which enterprise has a brand-name products, occupies the market, in the competition has an advantage, should support the principle of which enterprise to issue loans. Further broaden the financing channels of private enterprises, the development of direct financing methods suitable for the characteristics of private enterprises, as soon as possible to establish and improve the system of financial institutions specializing in serving private enterprises.

The second is to set up a management committee for private enterprises, establish a specific fund or set up a credit guarantee system for private enterprises. The establishment of management committees by geographical area, the establishment of specific funds (including guarantee funds, mutual funds, etc.), the source of funds can be government financing institutions at all levels and the private enterprise membership fees, the implementation of the fund closed operation and management, and centralized support for the development of private enterprises. In addition, the establishment of the private enterprise credit guarantee institutions should be intermediary organizations for the purpose of service, not for profit as the main purpose, the guarantee collected, not at the expense of the financing costs of private enterprises. Should provide credit guarantee for private enterprises in order to help them obtain loans from general commercial banks, the use of the government's credibility and limited funds, reduce the risk of the financial sector to the private enterprise loans, drive the general commercial financial institutions to invest funds in the government to encourage the development of private enterprises.

2, change the concept, and effectively establish the financial management is the core of enterprise management concept.

It should be clear that the core of enterprise management is financial management, financial management is the core of funds management. As the use of capital turnover involved in all aspects of the enterprise, business operators should change the concept, recognizing that good management, good use, good control of funds is not only the responsibility of the financial sector, but the relationship between the various departments of the enterprise, the various production and operation aspects of the event. So to be implemented at all levels, *** with a contribution to the management of enterprise funds.

(I) strengthen fund management, strengthen financial control.

One is that the financial sector should use scientific methods to carry out feasibility financial analysis of investment projects. The financial department must use modern management methods to participate in new investment projects, asset reorganization projects, such as risk, cost and return of the demonstration assessment and evaluation work, from the financial management point of view to improve the management of investment, to take the merger, transfer, termination, cancellation, liquidation of the sale of the proposal for the business leaders to make decisions for reference. Secondly, private enterprises should pay attention to the decentralization of capital investment to reduce investment risk. Private enterprises in the accumulation of capital to reach a certain scale, you can engage in diversified operations, the eggs in different baskets, so as to diversify the investment risk. Third, private enterprises should establish a reasonable and scientific financial control system. For example, any investment expenditure and non-recurrent large amount of money expenditure by the owner (or chairman) or its authorized designated person to sign for approval; the rest of the day-to-day money expenditure by the vice president of the financial management or its authorized designated person to sign for approval. Accounts, money and goods should be set up by a person in charge. Financial personnel to participate in the development of the enterprise's production and operation plan, the funds to pay a good review. Fourth, strengthen financial supervision and internal audit. Enterprises for the production and business activities of various departments should be implemented strictly before, during and after the financial supervision and internal audit work. Internal audit work must be innovative, to be audited from the financial income and expenditure after the audit, to the economic efficiency audit, management audit, evaluation of internal control system, engineering project budget (final) audit, special audit and other areas of development.

(ii) improve the efficiency of the use of funds to produce the best results.

One is to strive to improve the efficiency of the use of funds, so that the use of funds to produce the best results. To this end, first of all, we must make the source and utilization of funds to be effectively coordinated. For example, never use short-term borrowing to buy fixed assets, so as not to lead to capital turnover difficulties. Secondly, accurately predict the time of recovery and payment of funds. For example, when accounts receivable can be recovered, when the goods can be purchased, etc., should be done in mind, otherwise, it is easy to cause an imbalance between income and expenditure, financial constraints. Finally, a reasonable allocation of funds, working capital and fixed capital occupancy should be effectively coordinated. Secondly, to strengthen the funds management to implement the various functions within the enterprise, the use of funds and around all aspects of the enterprise involved, business operators to change the concept, realize that good management, good use, good control of funds is not only the responsibility of the financial sector, but also the relationship between the various sectors of the enterprise.

(C) strengthen property control, sound property management system.

Private enterprises, especially small businesses have always attached importance to the management of monetary funds and ignore the management of physical assets. First, the enterprise should establish and improve the internal control system of property and material management, in material procurement, collocation, sales and sample management to establish standardized operating procedures, plug the loopholes and maintain security. Secondly, the management and recording of property must be separated to form a strong internal check, and asset management, recording, checking and checking should never be left to one person. Third, regular inspection and inventory of property should be conducted to urge managers and record-keepers to remain vigilant rather than negligent. Fourth, strengthen the management of inventory and accounts receivable. Strengthening the management of inventory, compressing obsolete inventory materials as far as possible, avoiding stagnation of funds, and using scientific methods to ensure the optimal structure of inventory funds. Strengthen the management of accounts receivable, research and evaluate the credit of credit-selling customers, regularly reconcile accounts receivable, formulate perfect collection management methods, and strictly control the aging of accounts.

(4) Strengthen the legal awareness of legal persons and improve the business quality of financial personnel.

At present, many private enterprises accounting accounts are unclear, information distortion, financial management chaos; business leaders, the phenomenon of bribery and bribery; enterprises set up off-balance-sheet accounts, fraud, resulting in false profits and losses or false losses and profits, and so on. Although the reasons are more complex, but the low quality of financial personnel is an important factor. Therefore, one is to strengthen the legal awareness of private enterprise legal awareness, to strengthen the head of the enterprise on accounting leadership, the legal awareness of the head of the enterprise has increased, not only to avoid the occurrence of accounting violations, but also conducive to the accounting staff in accordance with the law to provide its complete accounting information. Secondly, we should strengthen the construction of accounting personnel, improve the quality of accounting personnel, in order to for this, and strive to improve the majority of financial personnel business ability to work level, grasp the accounting personnel of the subsequent education work, and in strengthening the business training of accounting personnel at the same time, to carry out a good professional ethics education, the establishment and improvement of incentives to improve the work of accounting personnel in accordance with the law, the enthusiasm of the work. Thirdly, we should strengthen the basic work of accounting and realize standardized management. Financial management is chaotic, accounting information distortion is an important reason for the weak foundation of accounting work, only a reasonable set of accounting organizations, with strong, with real accounting staff, in order to accurately and truly accounting to lay a good foundation. In accordance with the unified "enterprise accounting system" and "small business accounting system" requirements, standardize the setup of books and accounting. To achieve the consistency of the accounts, accounts, accounts and tables, each part of the standard, standardized requirements, the establishment of a sound system of responsibility for the positions of accounting staff, so that the division of labor is scientific and reasonable, with clear responsibilities. Fourth, accelerate the computerization of accounting and network construction, improve the management of accounting information, computerization of accounting information, effectively overcome the errors that occur with manual operation and lead to distortion of accounting information.

In short, as long as all private enterprises can truly recognize the financial management in business management plays an important role, starting from the business leaders, and constantly improve the legal awareness of all staff, enhance the concept of the rule of law. At the same time, relying on all employees up and down the enterprise **** with the efforts, we will be able to improve the management of enterprises, good financial management, improve the competitive strength of enterprises. Of course, as the community should also do some support for the enterprise, such as: the establishment of specialized services for private enterprises, technology, management training and service institutions, to increase the main operators of private enterprises, accounting staff and management and technical staff training efforts, and in the enterprise diagnosis, legal advice, information collection and exchange, technology development, capital financing, market development, product exhibitions, marketing and advertising for private enterprises to provide the necessary help. Provide necessary assistance to private enterprises. Make the national private enterprise this bright spot flashes dazzling light, forming a prairie fire.

Small and medium-sized enterprise financial management problems and countermeasures to explore

r/ At present, China's small and medium-sized enterprises has nearly 10 million, accounting for 99% of the total number of national enterprises, which provides the total industrial output value and realized profits and taxes accounted for 60% and 40% of the national total, and provides about 75% of the urban employment opportunities, and has become a major source of fiscal revenue in the counties and the following counties. It was clear that small and medium-sized enterprises were an important part of the national economy and played a pivotal role in promoting economic development and social stability. However, due to the existence of factors such as the small scale of SMEs, the low capital and technology composition, and the great influence of external macroeconomic changes on them, their financial management is not adapted to their own development and the market economy, which leads to the huge difficulties they face in coping with the fierce competition in the market. Analyze the problems in the financial management of small and medium-sized enterprises and explore countermeasures to solve the problem, in order to promote the reform and development of small and medium-sized enterprises, is the current accounting community need to think and solve the problem.

I, small and medium-sized financial management problems

1, the lack of a clear direction of industrial development, the lack of scientific evidence of project investment. First, one-sided pursuit of "hot" industry, regardless of the objective conditions and their own capabilities, ignoring the national macro-control of the impact of enterprise development, that what industry can do, what industry can do well. Some enterprises even unilaterally think that the state regulates what should be on what, sure to make money. Secondly, the project's investment scale, capital structure, construction cycle and the lack of scientific planning and deployment of sources of funds, the project construction and operation process will occur in the lack of reliable cash flow forecasts, hastily launched. Once the country to increase macro-control efforts, tighten bank credit, so that the construction funds can not be in place as scheduled, the enterprise will face a dilemma, or even cause huge economic losses. In recent years, many enterprises invested in steel, aluminum, cement and other projects due to financial difficulties and premature death, or "cut meat" sold or become permanent "under construction", not only the enterprise itself has paid a heavy price for this, but also some of the bank dragged into the quagmire.

2, financial risk awareness is weak, the enterprise is always running in the high-risk area. This is manifested in three aspects: First, excessive indebtedness. Enterprises to develop, it is inevitable to debt management, make full use of the role of financial leverage. However, some enterprises regardless of cost, at all costs, without regard to their ability to repay, by all means from the bank to obtain loans. Some enterprises do not even understand the "debt repayment" the most obvious reason, that is, to obtain loans from the bank to obtain profits, only to consider how to get the loan, and did not seriously consider how to make the limited funds to play a role in the benefits, not to mention how to pay back. In the case of borrowed funds can not play an effective role, some enterprises have entered a vicious circle of relying on loans to maintain survival. The result is a high level of debt and great financial risk. Secondly, short-term debt and long-term investment. In the country to implement a stronger macro-control conditions, enterprises to get fixed assets loans are more difficult. Some enterprises to take a workaround, unauthorized changes in the use of loans, short-term borrowing for the long payback period of long-term project investment, resulting in the enterprise current liabilities is much higher than the current assets, so that enterprises are facing a great potential to pay the crisis; Third, the enterprises guarantee each other, the same assets repeatedly collateralized, or in order to finance the continuous investment in new projects, or even "demolition of the east wall to make up for the west wall", the formation of a complex chain of debt. This not only increases the difficulty for banks to judge the financial situation of enterprises, but also brings great difficulties to financial supervision, resulting in the overall debt ratio is constantly rising, the enterprise's operating costs and financial expenses are increasing, the ability to pay is becoming increasingly fragile, and the capital chain is too tight and may be ruptured at any time.

3, weak financial control. First, the cash management is not strict, the formation of idle or insufficient funds. Some enterprises believe that the more cash the better, resulting in idle cash, did not participate in the production turnover; Secondly, there is no strict credit policy, the lack of strong collection measures, accounts receivable can not be honored or the formation of doubtful accounts, accounts receivable turnover is slow, the recovery of funds is difficult. Third, inventory control is weak, resulting in stagnant funds. Many enterprises at the end of the month inventory occupies funds often more than several times its turnover, the formation of stagnant funds, turnover failure. Fourth, the money is not important, the loss of assets, a serious waste. Many managers of small and medium-sized enterprises, raw materials, semi-finished products, finished products, fixed assets and other management is not in place, financial management responsibilities are unclear, serious waste of assets.

4, financial accounting workflow is not standardized, not strict. First, the original vouchers, accounting entries, the application of subjects, books of accounts set up, as well as financial income and expenditure work is not standardized, did not form a strict system; Second, the preparation of accounting statements can not fully reflect the actual production and operation of the enterprise, but also did not fully in accordance with the requirements of the relevant state laws and regulations, resulting in distortion of accounting information. There is no strict quota management and sound analysis and accounting system for the consumption of materials, working hours, power, etc.; Thirdly, enterprises do not have or cannot establish internal audit departments, and even if they do, it is difficult to ensure the independence of internal audit and lack of the necessary financial supervision mechanism.

Second, the reasons for the analysis

Many of China's small and medium-sized enterprises are in the planned economy and the market economy of the system in the gap between the development of the experience of "from scratch, from small to large," the difficult process of development. In the difficult process of entrepreneurship, due to the constraints of the institutional environment and the innate weakness of the enterprise at that time, the success of the enterprise is mostly closely related to the entrepreneur's personal courage, experience and entrepreneurial spirit. Therefore, in the subsequent development, it is inevitable to be affected by the environment of shedding and its own growth path. Specifically, the impact of these factors on financial management is mainly manifested in the following aspects:

1, the impact of equity structure and business model. The ownership structure of small and medium-sized enterprises is generally highly centralized, in the business model of ownership and operation of the right to unity, the enterprise's investors at the same time is the operator, this model to the enterprise's financial management has brought no small negative impact. In small and medium-sized enterprises, a considerable portion of the individual, private nature of the enterprise, in these enterprises, business leaders centralized, family management phenomenon is serious, project decision-making is not scientific, undemocratic, arbitrariness is greater, the prevalence of the situation of personal decision-making, which inevitably results in investment decision-making errors.

2, the quality of business managers and the impact of management capacity. Existing small and medium-sized enterprises, most of which were developed in the 1980s under the conditions of shortage economy, a considerable part of the quality of managers, the ability to stay at the level of the time, management concepts are old-fashioned, backward management ideas, did not incorporate financial management into the overall consideration of enterprise management and effective mechanisms, the lack of modern financial management concepts, so that the financial management of the loss of the status and role of the enterprise should be in the management of the financial management.

3, organizational structure and human resources. First, the enterprise organizational structure is not sound, managers' duties are not clear. Second, the workflow is not standardized, the system is not sound. Resulting in financial approval arbitrariness, acting beyond the authority of the phenomenon is serious, resulting in confusion in financial management; Third, the quality of financial management personnel is low, the lack of basic theories and basic knowledge of financial management, while the legal system is relatively weak, the lack of full understanding and awareness of financial and accounting laws and regulations.

Three, to promote small and medium-sized enterprises to improve financial management countermeasures

1, actively promote property rights reform. Clarity of property rights, the establishment of a standardized enterprise property rights system, is the system and organizational basis for the sustainable development of enterprises. Therefore, the development of small and medium-sized enterprises to a certain stage, it is necessary to carry out property rights system reform. Through the standardization of property rights reform, first, to solve the excessive concentration of ownership, the formation of a diversified property rights structure, to prevent the "one share of the big"; second, to establish a shareholders' meeting, the board of directors, the supervisory board, the managerial layer and other modern enterprise governance structure. On the basis of the establishment of a new property rights structure, the establishment of organizational structure and decision-making mechanism compatible with the modern enterprise system, for good financial management to build the system and organizational foundation.

2, the operator must establish the concept of financial management. In the modern market economy, from the point of view of financial management, operators must establish three concepts: First, establish the concept of specialized management, to avoid the risk of diversified investment. Small and medium-sized enterprises are small in scale and relatively weak in strength, the resources of enterprises are limited, and the knowledge and ability of leaders are limited. Coupled with the rapid progress of modern science and technology, technology update cycle is short. In this case, small and medium-sized enterprises must focus on limited resources, and strive to do in a certain industry, do fine, do strong, which is the foundation of the enterprise, is also the basis of corporate finance. Second, establish the concept of financial risk. Make full use of the positive role of financial leverage is a good desire of many operators. However, the positive role of financial leverage is to borrow funds for the benefit of higher than the cost of funds and the enterprise's ability to repay the premise. Every enterprise has a reasonable debt ratio, is the bank, also requires a certain capital adequacy ratio. Debt ratio is too high, it would have been desperate, coupled with China's economy is cyclical, once encountered regulation, many banks only collect but not lending, even a normal indebtedness of the enterprise, once encountered such a situation, it is difficult to survive. This is especially true for enterprises with large debts and high debt ratios. Therefore, debt management must give full consideration to the enterprise's ability to repay and the efficiency of the use of funds, to avoid the risk of high indebtedness and can not be paid on time. Third, establish the concept of cash flow. Cash flow is to maintain the normal operation of the enterprise "blood". Net cash flow is the driving force of enterprise growth. For many enterprises, the significance of net cash flow is even higher than the operating profit and loss. Many companies are busy all year round, business is doing great, money has earned a lot, but in the hands of others, a large chunk of the enterprise's cash is occupied by customers. Net cash flow from operating activities is negative, there is no real cash gain. Therefore, focus on cash flow, grasp the status and direction of cash flow, including its ability to create cash in operations and the efficiency of the use of short-term liquidity loans, is a business operator must always have the basic information and an important basis for decision-making.

3, in accordance with relevant accounting laws and regulations, and gradually establish a more standardized, perfect and self-disciplined financial management organization system, workflow and financial management system. In accordance with the inherent law of enterprise financial management and the requirements of relevant state laws and regulations, the establishment of financial management organization system and the corresponding work agencies, under the principle of division of labor, clear management positions and personnel responsibilities, strict financial management workflow and approval procedures; at the same time, according to national laws and regulations, combined with the weak links in the financial management of the enterprise, to formulate the financial plan, fund-raising, asset management, cost management, labor and expense management, and the financial management system, and the financial management system. At the same time, in accordance with national laws and regulations, and in conjunction with the weak points of the enterprise's financial management, develop financial planning, fund-raising, asset management, cost and expense management, labor and wages, profit distribution and other management systems, and effectively implement them.

4, improve the quality of accounting personnel. Accounting staff should be licensed, no accounting qualification certificate, after training, assessment, to meet the requirements of the license issued; appointed to leading positions in accounting, must have the appropriate qualifications, never indiscriminate; accounting staff should be regularly professional ethics, business and technical education to improve the quality of the Accounting Law have clear provisions on this. Good employment is an important condition for the implementation of good financial management.

5, the outsourcing of financial fund management activities. Due to the limitations of the enterprise's own resources and areas of activity, any one enterprise can not have all the professional skills and resources needed for business management activities. Small and medium-sized enterprises can be part of the financial management business to professional organizations to manage. Make full use of the talent advantage of these organizations, information advantages and other resource advantages, both to reduce the cost of enterprise financial management, but also to constantly understand the relevant external dynamics, real-time update of the management methods, management tools, so as to improve management efficiency and management level.