Advantages and disadvantages of network economy to enterprise financial management

The rapid rise of the Internet industry, with its powerful information and service functions, is changing and affecting all levels and fields of society. The gradual networking and digitalization of the global economy has brought new opportunities and challenges for enterprises to participate in market competition and promoted the comprehensive innovation of enterprise management. As an important part of enterprise management, financial management is faced with the challenge of keeping up with new technologies and adapting to the network economy. The author believes that under the network economy, there are many disadvantages in traditional financial management. Only by innovating financial management in time can enterprises take the lead in domestic and international market competition and gain a firm foothold in the tide of network economy.

First, the disadvantages of traditional financial management under the network economy

In the era of network economy, due to the digitalization and networking of economic activities, many new media spaces have emerged, such as virtual markets and virtual banks. Many traditional business operation modes will disappear and be replaced by electronic payment, electronic procurement and electronic orders. Commercial activities will be mainly conducted on the Internet in the form of e-commerce, which will make the purchase and sale activities of enterprises more convenient, lower in cost and more accurate in quantitative monitoring of inventory. This special business model makes the traditional enterprise financial management unable to adapt to the settlement of commercial transactions based on the Internet. Specific performance in the following aspects.

(A) it is difficult to avoid new risks arising from enterprise management.

The first is network security. The network economy requires that financial management must be carried out through the Internet, and the Internet system uses an open TCP/IP protocol, which is spread in the form of broadcasting, and is easy to be intercepted, detected and stolen, posing a fake identity, which poses a great threat to network security. However, traditional financial management mostly adopts financial software based on intranet, without considering the security threats from the Internet, especially the financial data of enterprises are important business secrets, which will cause immeasurable losses once they are destroyed or leaked. Therefore, financial management must first solve the complex computer network security problem, which is difficult for traditional financial management.

Secondly, identification and file management. Under the network economy, all business transactions are conducted on the Internet, and the two parties do not meet each other, which requires mutual authentication through certain technical means to ensure the security of e-commerce transactions. Traditional financial management software generally uses passwords to confirm identity, and different users have different passwords. If we continue to use this password authentication method, with the increase of Internet users and applications, password maintenance will consume a lot of manpower and financial resources. Obviously, this authentication technology is no longer suitable for financial management based on the Internet. In addition, traditional financial management has always used handwritten signatures to prove the original author of documents or agree with the contents of documents. However, under the network environment, the use of paperless media such as electronic reports and electronic contracts can not follow the traditional signature method, thus there are new risks in distinguishing authenticity.