From which aspects of financial management to recognize

I. Characterization of the failure of financial management of small and medium-sized enterprises

1. Small and medium-sized enterprises tend to focus on production and sales, ignoring financial management. Due to the lack of professional management personnel, small and medium-sized enterprises tend to focus on production and sales, light financial management and internal management. Especially in the economic boom period, small and medium-sized enterprises in the face of a large number of optional market opportunities, it is easier to ignore financial management. Once the economic boom situation changes, market competition is fierce, SMEs ignore the consequences of financial management will be fully exposed. Because, during the economic downturn, SMEs will be plagued by inventory backlogs and inflated accounts receivable on the one hand, and face difficulties in raising short-term capital on the other.

2. Weak accounting work capacity. Restricted by organizational costs, production scale and human resources, the financial management institutions of small and medium-sized enterprises are very simple, professionalism is very weak, and internal control is weak. The accounting work of SMEs is weak, and the accounting system usually cannot be sound. Due to the attraction of excellent financial management personnel is not very attractive, accounting personnel business quality is not good, resulting in the highest decision-makers are difficult to carry out a correct understanding of the role of financial management and financial analysis, ignoring the relationship between production, management and efficiency.

3. Lack of internal control system, discretionary. Compared with large enterprises, small and medium-sized management level and the related capital turnover rate is low, small and medium-sized enterprises often lack of strict capital utilization plan, and inventory management and transaction settlement and other aspects of the lack of necessary internal control system, discretionary. In addition, small and medium-sized enterprises due to their limited size and single structure, do not have the kind of large-scale enterprises the ability to dispatch internal funds. In addition, the quality of accounting is not high, the operating history is not long, the financial information is not sufficient; financial statements have not been audited, accounting is vulnerable to unhealthy factors of interference.

4. Difficulty in applying scientific and effective analytical tools. Small and medium-sized due to internal and external constraints and difficult to use scientific and effective analytical tools for financial management, such as recognized as a scientific and effective analytical tools --- discounted cash flow analysis in small and medium-sized difficult to use, the reasons are: First, the lack of management resources in small and medium-sized. First, the management resources of SMEs are scarce, and the operators are not well trained to use scientific decision-making analysis tools; second, due to the simple organizational structure of SMEs and the unclear demarcation of management behaviors, the operators are too poor to cope with the day-to-day affairs and do not have sufficient time to use the discounting analysis technique, and the adoption of simple analysis by the enterprises is considered to be a rational economic behavior; third, the analytical cost of discounting technique is too high; and fourth, the prime concern of SMEs is survival, focusing on the near future rather than on the future. issue is survival, emphasizing near-term rather than medium- and long-term cash flows.

Two, the analysis of factors affecting the failure of financial management of small and medium-sized enterprises

1. Support elements. Support elements mainly refer to the policy support of all levels of government, national legal support, financial support. (1) Lack of policy and legal support. Over the years, China's government in the policy system is mainly focused on supporting large enterprises, especially state-owned enterprises or listed companies, the small and medium-sized enterprises have not formed a systematic policy system for small and medium-sized enterprise support. In addition, there is no specialized law on SME support in China so far, and the legal provisions related to SMEs are scattered in some legal norms and mainly focus on the government's management of enterprises, with very few provisions on the protection of the weak status of SMEs. (2) Preferential policies on financing, taxation and land use favor large enterprises. Large enterprises have policy preferences in financing, taxation, and land use, and under the same conditions, large enterprises can get loans in preference to SMEs. On the contrary, it is difficult for SMEs to get financing. The total number of SMEs and the total industrial output value account for the vast majority of the country, but the scale of loans accounts for a very small share of the total national credit. SMEs are subject to more taxes and fees, duplication of charges and greater arbitrariness in tax collection, and some government departments have made SMEs the object of amortization of various fees.

2. Internal management factors. The internal elements of the enterprise mainly include the enterprise management mechanism, talent elements, the importance of financial management. (1) the overall management level needs to be improved. The overall management level of small and medium-sized enterprises is not high, accounting management is not isolated, it must cooperate and coordinate with other management departments, there is a more scientific and rigorous management system, in order to improve the accounting management level of enterprises. (2) Lack of professional management personnel. Small and medium-sized enterprises by its size, the management of the division of labor is coarse, the degree of specialization of managers is low. In particular, most of the small and medium-sized enterprises are family-run, it is difficult to attract talent, so the small and medium-sized enterprise operator is often the owner himself, even if not, the professional manager hired is difficult to reach the level of experience comparable to that of large enterprises. (3) Insufficient attention to accounting, making the accounting management system of small and medium-sized enterprises chaotic.

3. Financial internal organizational elements. Financial internal organizational elements include the development and implementation of the accounting management system, the setting of the accounting organization, the management of accounting personnel and other factors. (1) Inadequate accounting management system. Although small and medium-sized enterprises have an accounting management system, but because of the high degree of unity of ownership and management, business leaders centralized phenomenon is serious, resulting in accounting management responsibilities are not divided, overstepping the authority to act, accounting implementation of the arbitrariness of the larger. (2) The accounting organization is not standardized, and the division of responsibilities is not clear. Large and medium-sized enterprises set up more scientific and standardized institutions, the division of labor and responsibilities of the personnel is clear, the general implementation of the chief accountant under the Financial Accounting Office, to establish the financial accounting in the management of the enterprise's important position. Small and medium-sized enterprises because most of them are family management organization, accounting organization usually adopts vertical management mode, management span is small, narrow range. Due to the size, financial resources, manpower constraints, small and medium-sized accounting organizations in the job setup is prone to cross overlap phenomenon, affecting the function of the accounting staff to play, especially not conducive to the internal control of the enterprise. (3) Accounting personnel operation is not standardized, personnel turnover, quality needs to be improved. As the working environment, salary treatment and promotion opportunities of large enterprises are better than those of small and medium-sized enterprises, the accounting personnel of large enterprises are more stable, and their enthusiasm and enthusiasm for work are higher, while the requirements of large enterprises for employees are also more stringent. Small and medium-sized enterprises are more difficult to attract excellent personnel, and at the same time, due to the frequent turnover of personnel, there is a general problem of unstandardized accounting work, accounting personnel are more interfered by the leadership, and the enthusiasm for work is not high. As a result, the quality and treatment of accounting personnel in small and medium-sized enterprises need to be improved.

4. Accounting, monitoring elements. Accounting accounting, monitoring elements including accounting confirmation, recording, reporting, monitoring and other elements. (1) Accounting is not standardized. Compared with large enterprises, small and medium-sized accounting is not standardized, especially small enterprises such as township enterprises and private enterprises accounting subjective arbitrariness. (2) Poor internal accounting control. Large enterprises, internal control organizations, staffing is relatively complete, such as the establishment of the internal audit department, with a financial director, the implementation of the chief accountant system, accounting staff to check each other. However, small and medium-sized enterprises is not quite the same, small and medium-sized enterprises internal control organization is not sound, that there is no need. In addition, small and medium-sized enterprises staff streamlining, a person to take on several jobs, the division of labor is not clear, resulting in poor self-monitoring ability, which is directly related to the nature of small and medium-sized enterprises and organizational forms. (3) External monitoring is arbitrary. As the state supervision focuses on large-scale enterprises, the external monitoring of large-scale enterprises is stronger than that of small and medium-sized enterprises, and the external monitoring of small and medium-sized enterprises is softer, without the support of rules and regulations. Therefore, the external supervision of small and medium-sized enterprises is more subjective than objective and more arbitrary than standardized. The supervisory power mainly comes from CPAs and local governments and departments of industry and commerce, taxation and banks, but the supervision is not strong, and most of the supervisory departments are just standing on their own positions and acting in their own way.

Three, conclusion

Compared with large enterprises, the financial management of small and medium-sized enterprises is obviously at a disadvantage, and its failure to influence the factors mainly include four major categories, namely, the support element, the internal management of the enterprise element, the financial internal organization element, accounting and monitoring element. Environmental elements play a decisive role in several other elements, the element is located in the starting position of financial management; enterprise internal management elements is an important guarantee of financial management; financial internal organization elements is the financial management of the operation of the organization to ensure that; accounting system elements are located in the core of the entire financial management; accounting monitoring elements is the normal operation of the accounting guarantee.