There are many small and medium-sized enterprises in China, which play an important role in the national economy. Compared with large enterprises, small and medium-sized enterprises have the advantages of simple structure, quick decision-making and quick response. However, the production scale is too small to form scale benefits; In many aspects, such as production efficiency, technological progress and fund raising, it can't be compared with large enterprises. So that for a long time, the rapid development of small and medium-sized enterprises in China is at the expense of a lot of resources, which is characterized by high cost and low profit in finance. Moreover, small and medium-sized enterprises are relatively weak in technical foundation and lack of senior personnel, so it is difficult to implement comprehensive technical update due to financial factors. Therefore, small and medium-sized enterprises should strengthen cost awareness and attach importance to cost management. This paper analyzes some problems existing in the current cost management of small and medium-sized enterprises, and puts forward corresponding countermeasures.

First, the cost management of SMEs problems and causes analysis

With the deepening of reform, the socialist market economy and modern enterprise system are gradually being established and improved. Strengthening cost management and improving the vitality and competitiveness of enterprises have become a prominent and urgent problem faced by small and medium-sized enterprises in China. However, due to the influence of traditional cost management thought, there are many problems in the cost management of small and medium-sized enterprises in China at present.

1. The management system is imperfect and the cost management system is loose.

Although most enterprises have some cost management frameworks, due to the lack of corresponding internal control system, the implementation effect is not ideal. Some small and medium-sized enterprises have not established a strict management system, which leads to the out-of-control state of enterprise cost management, which leads to the continuous expansion of costs and encourages corruption. In addition, the cost control mechanism is not implemented in the whole process, and only afterwards control can not effectively achieve the goal of enterprise cost management. In addition, the cost consciousness of individual enterprise leaders is not strong. Specifically, when the product cost is decomposed, it is not calculated one by one according to the product design requirements and the cost formation of parts and processes, nor is it filled in and summarized step by step from bottom to top. A big account is calculated only by subjective impression, and it is divided into several major parts according to product cost, such as working hours, material consumption and management expenses. Some people think that cost statistics are just trivial matters and rarely ask questions; Others think that the enterprise's product structure is simple, the production cycle is short, and there are few processes, so it is not worth making cost statistics. All these have caused problems in cost management.

2. Insufficient investment in technological innovation and backward cost management methods.

The improvement of technological innovation ability is very important for an enterprise to maintain its market competitiveness and sustainable development. The improvement of technological innovation ability mainly depends on the amount of investment in technological development of enterprises. Foreign research data show that enterprises cannot survive if the investment in scientific research accounts for 1% of sales. 2%, the enterprise can barely survive; 5%, enterprises have strong competitiveness. Most small and medium-sized enterprises in China have no investment in scientific research, and even if they do, they are far below this index. In a certain period, under a certain technical level, strengthening management can reduce costs, but the reduction is limited. Therefore, in order to reduce the cost of products, enterprise managers need to constantly improve their technical level. In addition, the accounting method is backward and cannot meet the development needs of modern enterprises. From the perspective of cost management, although some enterprises have entered the stage of computerized accounting, their functions have not been fully exerted.

3. The cost consciousness of product design is weak, and the market concept is not strong

Although some enterprises have taken measures to strengthen cost statistics, such as independent cost accounting of workshops and strict control of materials and working hours consumption, the effect is limited and the cost is still rising. The reason is that the product design is not done well, and the cost estimation and statistics of each part in the product design stage are ignored, which leads to an unfavorable start as soon as the product is put into production. Market is the place where enterprises realize benefits and the direction of production. However, many enterprises have no market demand for production, and unilaterally emphasize high output. Once the market demand is saturated or inelastic, the higher the output of enterprises, the greater the losses. An obvious example that happened around us is the competition among domestic color TV industries. When the color TV production line is introduced, color TV manufacturers hope to increase output through large projects, thus reducing costs and winning consumers by taking advantage of the price advantage formed by low costs. However, this method does not take into account the capacity of the color TV market. Over-saturation of the market will only lead to repeated price reduction of products. Some manufacturers are operating at a loss, and the survival of enterprises is a problem, not to mention the development and growth.

Second, measures to improve the cost management of SMEs

With the development of economic globalization, it is more important to strengthen the cost management of SMEs. At a fixed price, the more you reduce the cost, the more you increase the profit. It determines the future survival and development of enterprises. In order to meet the needs of market competition, the cost management of modern enterprises in China must improve the existing cost management situation.

1. Establish the overall concept of enterprise cost management

In the market economy environment, enterprises should establish and gradually improve the cost management system based on macro and micro environment, regard enterprise cost management as a systematic project, emphasize the whole and the overall situation, and conduct all-round analysis and research on the object, content and method of enterprise cost management. Then, according to the specific content of cost decision, the cost plan is compiled as the basis of cost control. Organize cost accounting, strengthen cost audit and supervision, establish and improve the cost accounting system, and improve the cost management level of enterprises. In addition, the regulatory system should be constantly improved, and many enterprises have few regulatory agencies, which are ineffective and unable to achieve effective supervision. Enterprise management should be implemented in the system, so that cost management can be based on laws and form a certain system.

2. Strengthen the internal management of enterprises and improve the utilization rate of resources.

Do the basic work of cost accounting and cost management. Improve the cost management system, scientifically and reasonably determine the quota of raw materials and energy consumption, reduce unnecessary losses and waste, and improve the comprehensive utilization rate of materials. According to the national statistical system, truthfully count all indicators and establish an internal accounting system to track market prices. Implement target cost management. Determine the target cost according to the market price, profit target, raw materials and energy consumption quota of the product. , the target cost is decomposed into all aspects of product development and production and operation, the target responsibility is implemented to people, the cost index is strictly assessed, and rewards and punishments are strictly honored. Improve the form of production organization, select production personnel, give full play to technical advantages, rationally use and allocate labor force, establish and improve labor management system, and improve attendance, man-hour utilization rate and work efficiency. Strive to save energy and reduce consumption. Enterprises actively eliminate backward production processes and equipment with high consumption of raw materials and energy, strengthen technical transformation of equipment, improve equipment management system, improve equipment utilization rate and reduce depreciation expenses of fixed assets per unit product. Reduce the consumption of raw materials and energy and put an end to all kinds of waste.