Analysis and Improvement of the Problems of Financial Management Objectives of Small and Medium-sized Enterprises

Currently, the number of small and medium-sized enterprises (SMEs) in China has exceeded 10 million, constituting the main body of China's market economy and an important force in promoting the national economy. However, due to the special operation mode of small and medium-sized enterprises, so that their financial management often exists in one way or another problem. A small and medium-sized financial management problems

1 financing channels are seriously poor, serious shortage of funds. At present, China's small and medium-sized enterprises initially established a more independent, multi-channel financing system, but financing is still the most important factor affecting the development of small and medium-sized enterprises, but also the most difficult to break through the bottleneck. The operation mechanism and credit management of financial institutions are not compatible with the financing needs of SMEs. On the one hand, in order to reduce the risk of lending, reduce the cost of lending, banks are reluctant to lend to small-scale operations, low credit rating, relatively poor creditworthiness, non-transparent information, unstable business performance of small and medium-sized enterprises; on the other hand, small and medium-sized enterprises, financing time is urgent, high frequency, the amount of small features and the bank's cumbersome lending procedures do not match, is often a loan in place, the business opportunity has passed. 2 Lack of internal control system and weak financial control. As a large part of small and medium-sized enterprises are private enterprises, these enterprises are often controlled by a person or a small number of people, decision-making and business management of subjective arbitrariness is greater, for the theoretical approach to financial management and the lack of due knowledge and research, resulting in the duties are not divided, overstepping the bounds of the right to act, resulting in confusion in the financial management, financial monitoring is not rigorous, distortion of accounting information, and so on. Most of the small and medium-sized enterprises lack perfect internal financial control system, audit system, quota management system, financial inventory system, cost accounting system, financial income and expenditure approval system and other basic financial management system. 3 Accounting work is weak, accounting personnel quality is low. Small and medium-sized enterprises generally have an accounting organization is not set up, accounting staffing unreasonable problems, some enterprises simply do not set up an accounting organization, all the accounting work entrusted to the accounting firm, or appoint their own relatives as a cashier, outside the part-time accountant regularly to do the books, ignoring the role of accounting in the financial management of the enterprise. Some enterprises or only set up accounting institutions, and not set up financial management institutions, small and medium-sized enterprises, most of the accounting staff have not been specialized, systematic knowledge education, no accounting professional and technical titles, the phenomenon of more unlicensed.

4 internal financial management information technology construction is backward, difficult to apply scientific and effective financial analysis tools. The vast majority of small and medium-sized enterprises in China is still limited to the traditional mode of accounting system, the computer is just the office of the fashionable furnishings, and will not use financial software and the establishment of their own microcomputer network. Will not be the business beforehand to obtain information for comparison, to make correct decisions and predictions, will be eliminated hidden dangers. In addition, small and medium-sized due to internal and external constraints and difficult to use scientific and effective analytical tools for financial management, such as discounted cash flow analysis in small and medium-sized difficult to use, for the following reasons: First, small and medium-sized management resources are scarce, the operators have not been well trained to use scientific decision-making and analytical tools; Second, due to the small and medium-sized organization and management of the simple behavior of the division of boundaries Secondly, due to the simple organization of SMEs and the demarcation of management behaviors, operators are too busy to deal with daily affairs and do not have enough time to use the discounting analysis technique, and the use of simple analysis by enterprises is considered to be a rational economic behavior; thirdly, the analysis cost of discounting technique is too high; fourthly, the primary concern of SMEs is survival, and they pay attention to the near-term rather than medium- and long-term cash flow. Second, measures to solve the problems in the financial management of small and medium-sized enterprises 1 Strengthen the construction of relevant regulations to create a favorable policy environment and service environment for the rapid and sustainable development of small and medium-sized enterprises. Small and medium-sized enterprises have a small scale of operation, poor ability to withstand market risks and poor ability to operate with capital, which objectively requires the state to give appropriate support through a stable financing mechanism. For example, the establishment of a fund for small and medium-sized enterprises, including a specific-purpose fund, a guarantee fund, a venture capital fund, and a mutual aid fund, etc., whose sources of funding can be the membership fees of government financial institutions and small and medium-sized enterprises at all levels, and the management of which implements the closed operation of the fund and concentrates on supporting the development of small and medium-sized enterprises. Accelerate the establishment of a credit guarantee system for SMEs. SME credit guarantee agencies are intermediary organizations with the purpose of providing services, and guarantee fees should not be collected at the expense of increasing the financing costs of SMEs. The State Economic and Trade Commission, the State Administration for Industry and Commerce, the Ministry of Finance and other ministries and commissions have recently jointly issued the Opinions on Strengthening the Credit Management of Small and Medium-sized Enterprises, which put forward a number of opinions on guiding small and medium-sized enterprises to enhance the concept of credit, improve their credit status in order to create a good credit environment, as well as speeding up the pace of the construction of China's socialized credit system. This signifies that, in the process of the socialized credit guarantee system mainly for SMEs in China, it is necessary to combine the establishment of a credit guarantee system with the establishment of other socialized service systems (e.g., small and medium-sized enterprise credit appraisal agencies, small and medium-sized enterprise investment and financing information service agencies, and the Federation of Small and Medium-sized Enterprises), in order to provide a variety of services for SMEs to raise funds. In short, government departments should change their functions, seriously study and follow the law of enterprise growth, effectively protect the rights and interests of SMEs, and provide public welfare services for SMEs. SMEs themselves should also optimize their capital structure and create a good external credit image. Capital structure refers to the proportion of equity funds and debt funds in various sources of funds of an enterprise, which is not only the main factor determining the overall cost of capital of an enterprise, but also the main yardstick reflecting the degree of financial risk of an enterprise, the development of an enterprise cannot be separated from the capital input, of which a considerable proportion of liabilities, SMEs in particular. Small and medium-sized enterprises in the creation of the enterprise, according to its size to raise the necessary funds, or in the case of limited funds, choose the scale that can be achieved, and at the same time make full use of the internal pooling of funds for the expansion of the enterprise's capital scale to provide a stable and reliable source of funds. In the daily operation, small and medium-sized enterprises should grasp the market development, expand sales, reduce costs, improve the profitability of the enterprise, the realization of the after-tax run as far as possible to accumulate, in order to enrich their own capital, expanding the scale of operation. 2 Small and medium-sized enterprises should carry out financial system innovation, strengthen fund management, strengthen financial control. Small and medium-sized enterprise financial system innovation is between stakeholders to achieve the interests of coordination and cooperation for the purpose of financial contract to make the rearrangement. The system innovation system of SME finance mainly includes the innovation of financial governance and financial control. As a part of corporate governance, the financial governance of SMEs is essentially an owner-led governance structure. The financial governance of SMEs should take into account the interests of stakeholders and allow key resource owners to participate in financial governance. The participation of key resource owners in governance is also an innovative embodiment of incentive and constraint mechanism, which can greatly motivate the enthusiasm of key resource owners for dedicated investment, thus investing specialized resources for the sustainable development of SMEs. The financial control innovation of SMEs mainly includes: one is to reengineer the financial control process. Currently many SMEs financial control process and business processes are disconnected, enterprises can not implement real-time monitoring of business activities, the result is likely to lead to procurement, production, sales and other value chain links out of control. Therefore, it is necessary for SMEs to establish a value chain financial point of view, the financial control process and business processes are closely integrated, so that financial personnel involved in business activities. Second, small and medium-sized enterprises also need to establish a comprehensive financial control system. An all-round financial control system should include at least two aspects. On the one hand, the use of real-time financial control methods, such as budget management, financial clearinghouse, financial performance evaluation, etc., so as to carry out business activities before, during and after the monitoring. On the other hand, the establishment of multiple financial lines of defense to improve strong protection for the sound and efficient operation of financial activities. Third, focus on the key point of financial control innovation. The so-called key control point is the point of control effect and efficiency will determine the effectiveness and efficiency of the entire control system, the key control point of small and medium-sized enterprises in cash, deposit and credit and credit risk control. Specifically to strengthen property control, it is necessary to establish a sound internal control system for property and material management, to establish standardized operating procedures in material procurement, collation, sales and sample management, to plug the loopholes and maintain security. The management and recording of property must be separated in order to form a strong internal check, and asset management, recording, checking and checking must not be left to one person. Regular inspection and inventory of property urges managers and record keepers to remain vigilant and not negligent. Establishment of sound internal control to improve the level of financial management of enterprises, internal control refers to the unit in order to improve the quality of accounting information, to protect the safety and integrity of assets, to ensure the implementation of relevant laws, regulations and rules and regulations and the development and implementation of a series of control methods, measures and procedures.

3 Strengthen the professional education of accounting personnel and emphasize the cultivation and motivation of innovative talents in accounting. Finance and accounting personnel must be familiar with and comply with national laws and regulations, abide by the financial discipline and system, abide by the code of professional ethics, have good business quality, which is the basic requirements for the implementation of the financial innovation project, as well as the ability to innovate and the spirit of innovation, in addition to pay attention to in the personal qualities including the sense of innovation, the ability to create and the spirit of innovation. In addition, the modern financial management concepts that should be set up by the financial and accounting personnel, including the concept of competition, the concept of risk, the concept of liability management, the concept of profitability, the concept of efficiency, the concept of time value of funds, the concept of focusing on intangible assets and the concept of the rule of law. Small and medium-sized enterprises should establish a good incentive mechanism, so that financial managers can share the increased wealth of the enterprise, such as giving financial managers a certain percentage of distribution of a certain equity, so that it becomes one of the owners of the enterprise, shareholding dividends. At the same time for financial managers to provide continuous learning opportunities, so that they receive the appropriate financial knowledge training, constantly update their knowledge and enhance their sense of belonging to the enterprise. The implementation of material incentives and spiritual rewards for financial managers, according to the size of the contribution to the distribution, while paying attention to the timeliness and effectiveness of the encouragement. 4 Adapt to the new demands of the network economy, realize networked financial management, focusing on financial analysis. Within the small and medium-sized enterprises, should try to increase the networked hardware investment and the introduction of advanced networked financial management and financial management decision support system, so that the financial staff from the heavy number crunching out of most of the time and energy on the field investigation and financial analysis to adapt to the rapid development of small and medium-sized enterprise management needs. This not only requires financial staff to reflect the true, accurate and timely production and operation status of the enterprise, but also the reasons for the formation of these indicators, as well as the favorable and unfavorable factors to achieve a certain goal, through a variety of analytical methods to reflect, so that leaders can see at a glance, for the development of work objectives, to make the right decision to provide a basis. Outside the enterprise, through the network and the bank to establish a good relationship, comprehensively improve the level of operation of funds, in the network economy conditions, through the network and the bank to establish a good relationship, you can use some of the bank's service resources, strive for financing, investment in attractive new products to form a competitive advantage, and comprehensively improve the level of operation of funds. At the same time, the bank can timely understand the business situation of enterprises, so as to provide financial support for well-run small and medium-sized enterprises. 5 People-oriented, rationalize the financial relations of small and medium-sized enterprises, the establishment of a strict system of punishment and supervision. Although small and medium-sized enterprises in the selection of personnel rely on blood relations, but the enterprise investors, managers and creditors still formed between the enterprise's financial and economic relations, for this enterprise must be established in order to prevent managers to achieve certain purposes and the formation of financial risk approach. Inside the enterprise to establish mutual supervision and evaluation as well as enterprise superior and subordinate, department and department mutual information communication system and accountability system, to ensure that its authority objectivity, independence, impartiality, and responsible for business operators behavior, performance supervision and evaluation, responsible for the enterprise investors. In the external supervision of the enterprise, you can hire a certified public accounting firm from time to time, financial consultants, to strengthen the audit supervision, to find the problem.