Referring to this revision, this paper discusses the problems existing in the financial management of small and medium-sized enterprises in China and their countermeasures. Due to the problems of national policies and enterprises themselves, the financial management of small and medium-sized enterprises mainly has some problems, such as narrow financing channels, serious shortage of funds, weak awareness of financial management of operators, imperfect financial accounting system of enterprises and so on. In order to give full play to the role of small and medium-sized enterprises, the author suggests adopting relevant policies, broadening financing channels, strengthening financial management, strengthening external supervision, introducing professional managers and improving the management level of small and medium-sized enterprises. Keywords: small and medium-sized enterprises; Financial management; Problems; Countermeasures accounting net, China In February 2005, the National Development and Reform Commission issued a work report on the Growth Project of Small and Medium-sized Enterprises, which pointed out that there are currently more than 42.4 million small and medium-sized enterprises in China, accounting for 99.6% of the national enterprises, and the sales of small and medium-sized enterprises account for 58.9% of the total sales of all enterprises. The output value of final products and services accounts for about 58% of the national GDP, and the tax revenue accounts for about 48%. Patents account for 66% of the national patents, new products account for 82% of all new products, and the number of employed people accounts for 75% of the urban net employed population. However, due to the influence of small output scale, low capital and technology composition, traditional system and external macro-economy, the financial management of small and medium-sized enterprises in China is not optimistic. It is urgent to strengthen the financial management of small and medium-sized enterprises. Accounting net, China I. Criteria for the Definition of Small and Medium-sized Enterprises The People's Republic of China (PRC) Small and Medium-sized Enterprises Promotion Law (hereinafter referred to as the Small and Medium-sized Enterprises Promotion Law) promulgated in 2002 pointed out that small and medium-sized enterprises refer to enterprises of various ownership and forms established in People's Republic of China (PRC) according to law, which are conducive to meeting social needs, increasing employment, in line with national industrial policies, and their production and operation scale belongs to small and medium-sized enterprises. The criteria for defining small and medium-sized enterprises can be considered from China and accounting net. (1) Theoretical criteria The theoretical criteria for defining small and medium-sized enterprises should be based on competitiveness. The competitiveness of enterprises can be divided into three levels: resource acquisition ability, utilization ability and development ability. The contribution weight of the three levels of capabilities to competitiveness should be increased in turn. China and accounting net (II) Practice Guidelines Practice guidelines are divided into macro-policy guidelines and departmental policy guidelines according to different policy levels. The former is the definition standard of SMEs, while the latter is the classification standard of SMEs. In practice, the criteria for defining small and medium-sized enterprises need to be solved from three aspects: the selection of reference system, the selection of indicators and the setting of indicators; When formulating departmental policies, small and medium-sized enterprises should be classified and selected according to the characteristics of departmental policies, and the classification selection criteria should be finally determined according to the current situation, policy objectives and requirements of enterprises. China accounting net II. Present situation of financial management of small and medium-sized enterprises In recent years, small and medium-sized enterprises in China have developed rapidly. However, a considerable number of small and medium-sized enterprises simply pursue sales and market share, ignoring the core position of financial management, and their management ideas are rigid and backward, which makes the role of financial management and risk control of enterprises not fully played. Due to the change of macroeconomic environment and the influence of system, small and medium-sized enterprises have encountered obstacles in strengthening financial management. For example, policy "discrimination" hinders fair competition between small and medium-sized enterprises and large enterprises; The intervention of local government industry management department makes the financial management objectives of small and medium-sized enterprises short-term; Financial management is greatly influenced by business operators and so on. In addition, the financial system of some small and medium-sized enterprises in China is not perfect, the accounting institutions and posts are in confusion, and accounting personnel are employed without certificates; It is not uncommon for enterprises to have chaotic accounts, false property and distorted data. The harm of these problems is not obvious in the initial stage of enterprise entrepreneurship. Once it enters capitalization and large-scale operation, its influence will gradually expand, which will eventually lead to the decline and decline of enterprises. Three. Analysis of the problems existing in financial management of small and medium-sized enterprises (1) Lack of national policy support. China and accounting net's national policy support mainly refers to the policy support, national legal support and financial support of governments at all levels. First, there is a lack of policy and legal support. For many years, the policy system of our government has tended to large enterprises, especially state-owned enterprises or listed companies, while ignoring the support policies for small and medium-sized enterprises. The legal provisions on small and medium-sized enterprises are scattered in some legal norms, and mainly focus on the government's management of enterprises, and there are few provisions on the protection of the weak position of small and medium-sized enterprises. Secondly, preferential policies such as financing, taxation and land use are also tilted towards large enterprises. The total number of small and medium-sized enterprises and the total industrial output value account for the vast majority of the total national counterpart, but the loan scale accounts for a small proportion of the total national credit. Small and medium-sized enterprises have many taxes and fees, and it is more casual to charge and collect taxes repeatedly. Some government departments also regard small and medium-sized enterprises as the apportionment objects of various expenses. China, accounting net (II) The funds are seriously insufficient. China's financing channels are narrow and the funds are insufficient. accounting net has always been a serious obstacle to the development of small and medium-sized enterprises in China. The production scale is small, and it is difficult to form scale benefits; Backward management, high operational risk and common short-term behavior; Low credit repayment and high loan risk. These reasons directly affect the financing of enterprises. Accounting net, China (III) Weak awareness of financial management On the one hand, a considerable number of small and medium-sized enterprises are private, and investors have the right to own and operate. When conducting financial activities and dealing with various economic relations, acting according to the boss's personal wishes has obvious random tendency; On the other hand, some operators have the concept of emphasizing technology, neglecting management, emphasizing sales and neglecting finance. They think that enterprise benefits depend on business development, not "management", and ignore the guiding role of financial management in enterprise production and operation activities. The weak financial management consciousness of enterprise managers restricts the healthy development of small and medium-sized enterprises. (D) Enterprise financial system is not perfect. The financial management environment of the whole enterprise in accounting net, China includes external environment and internal environment. The construction of external environment mainly depends on the formulation of government policies and the support of relevant institutions, while the construction of internal environment mainly depends on the system construction of enterprises themselves. The problems in the construction of small and medium-sized enterprises' own financial system are mainly reflected in the imperfect accounting system. Most small and medium-sized enterprises lack a complete internal accounting system, which is not only manifested in the management of original voucher records, quota management, measurement and acceptance management, but also in the responsibilities and authorities of accounting departments, the post responsibility system of accounting personnel, the accounting treatment procedure system, the internal containment system and the audit system. Accounting net, China (V) Enterprise Asset Management Chaos China accounting net 1. Cash management is chaotic. Most small and medium-sized enterprises do not prepare cash plans, and cash is often insufficient or idle; Low credit management level, lack of strict credit policy, and no specific reward and punishment measures for immediate payment, deferred payment and overdue payment; Lack of effective collection measures leads to more bad debts, which affects the improvement of sales and profits and hinders the flow of funds. 2. Poor control of accounts receivable. Due to the fierce competition among suppliers, small and medium-sized enterprises with oversupply of goods adopt the sales method of early delivery to avoid the elimination of their products, which leads to high accounts receivable, thus increasing the number of bad debts. Accounting net, China. Poor inventory control and sluggish funds. Most enterprises use cash to buy materials and sell products; Enterprise financial personnel withdraw cash at will for a long time without settlement; Cash receipts and payments of enterprises are not recorded, resulting in sluggish funds. Accounting net, China. Management of fixed assets is chaotic. The purchased fixed assets are not registered in time or cannot be recorded because they have not obtained invoices; Because the original records are unclear, the purchased fixed assets cannot be classified and depreciated according to the requirements of the current accounting system; Scrapped and damaged fixed assets are not cleaned up according to regulations, resulting in a series of problems such as inconsistent accounts and facts. (VI) Poor investment ability The poor investment ability of SMEs is mainly manifested as: 1. Small and medium-sized enterprises lack the funds needed for investment. The main sources of funds for SMEs are banks and other financial institutions, but it is difficult for them to attract investment or loans from financial institutions. Even if the bank agrees to lend to SMEs, it will raise the loan interest rate because of the high risk, thus increasing the financing cost of SMEs. 2. pursue short-term goals. Because of their small scale, higher loan investment ratio than large enterprises and greater risks, they focus on recovering their investment and ignore the expansion of their own scale. 3. Investment is blind, and it is difficult to grasp the accurate direction. Four. Specific ways to solve the financial management problems of small and medium-sized enterprises (I) Strengthening the promulgation of relevant government policies Compared with large enterprises, the financial management of small and medium-sized enterprises in www.canet.com.cn is obviously at a disadvantage. The relevant departments of our government should strengthen the legislation and relevant policies for small and medium-sized enterprises, protect their healthy growth and play their due role. According to incomplete statistics, among the legal persons of industrial enterprises in China, small enterprises account for more than 95%, and the final product and service value of small enterprises accounts for nearly 50% of the national GDP. Therefore, the government has also paid attention to small and medium-sized enterprises in recent years. For example, in 2002, the government promulgated the SME Promotion Law; In April 2004, the government promulgated the accounting system for small enterprises, which was fully implemented in June 2005. Although China has not yet promulgated complete accounting policies and regulations for small and medium-sized enterprises, with the increasingly obvious role of small and medium-sized enterprises, I believe that the government will make greater efforts in this regard and create a healthier environment for the establishment and development of small enterprises. Therefore, the majority of small and medium-sized enterprises are facing good development opportunities. Accounting net, China (II) Enhancing Financing Ability The narrow financing channels for SMEs directly affect the quality of financial management and become a bottleneck restricting the development of SMEs. Small and medium-sized enterprises have a small scale of operation and poor ability to resist market risks. According to their own characteristics, they should invest their funds in projects with short payback period and relatively low risks as much as possible to improve the efficiency of capital use and effectively broaden the financing channels of enterprises. Www.canet.com.cn 1。 Appropriately diversify investment risks, optimize capital structure, and improve their own financing ability. Small and medium-sized enterprises must arrange the capital structure reasonably and borrow moderately on the premise of increasing internal capital accumulation to meet the needs of enterprise investment. China accounting net II. Make scientific and reasonable financial strategic decisions, reduce investment risks, reduce the randomness and blindness of decision-making and improve the financial management level of enterprises. When the enterprise's capital has accumulated to a certain scale, we can consider moderate diversification, disperse capital investment and reduce investment risks. In addition, it is necessary to standardize the project investment procedures, scientifically predict investment projects, and ensure the balance between the time value of funds and the risk and return. Www.canet.com.cn 3。 Banks can use the inventory and accounts receivable of small and medium-sized enterprises as collateral, or use the patent rights enjoyed by small and medium-sized scientific and technological enterprises as collateral, support the financing of small and medium-sized enterprises, allow qualified enterprises to issue bonds, and provide opportunities for small and medium-sized enterprises to participate in the bond market. The Law on the Promotion of Small and Medium-sized Enterprises has made relevant provisions on this. For example, the People's Bank of China should strengthen its support for small and medium-sized financial institutions, encourage commercial banks to adjust their credit structure and increase credit support for small and medium-sized enterprises. Accounting net, China (III) Strict financial control accounting net, China In view of the weak financial control of enterprises, the majority of small and medium-sized enterprises should start from the following aspects: www.canet.com.cn1 All functional departments of enterprises should fully realize the importance of funds and strive to improve the efficiency of the use of funds. First of all, effectively cooperate with the source and application of funds. Secondly, accurately predict the time of fund recovery and payment. For example, the effective combination of purchase time and collection time of accounts receivable. The Law on the Promotion of Small and Medium-sized Enterprises stipulates: "The central budget should set up small and medium-sized enterprise subjects and arrange special funds to support the development of small and medium-sized enterprises. Local people's governments should provide financial support for small and medium-sized enterprises according to actual conditions. " Www.canet.com.cn 2。 Establish and improve the internal control system. Small and medium-sized enterprises should increase the transparency of property management and property records, and the responsibilities of financial management, recording, inspection and auditing should be clear. This can ensure the internal containment of enterprises, improve the security of enterprise information and promote the healthy development of enterprises. Accounting net, China. Strengthen the management of inventory and accounts receivable. As far as possible, the obsolete inventory materials should be compressed, so as to avoid stagnant funds and ensure the optimal structure of inventory funds. For example, large companies such as Dell and Haier have almost achieved the standard of zero inventory. Enterprises should promptly investigate and evaluate the credit of credit customers, regularly check the amount of accounts receivable, and strictly control the aging. Dormant accounts and bad debts should be properly handled after obtaining conclusive evidence. Accounting net, China. Standardize the employment of financial personnel and improve their quality. Enterprises should employ qualified accounting personnel in accordance with the requirements of the Accounting Law, Accounting System and other laws and regulations, avoid the employment of internal personnel of enterprise managers, and ensure the normal accounting work. In addition, it is necessary to carry out professional training for financial personnel, strengthen spiritual education, enhance legal awareness and supervision awareness, and strengthen the construction of accounting team. Www.canet.com.cn (IV) Strengthening External Supervision China accounting net At present, it is unrealistic for small and medium-sized enterprises to regulate their accounting work by their own constraints. They should rely more on external supervision to help them realize accounting standardization. China's accounting supervision is a trinity supervision system of state supervision, social supervision and enterprise internal supervision, of which the first two are external supervision. National supervision is the supervision of finance, taxation, banking, industry and commerce, securities supervision and other departments in accordance with relevant laws and regulations; Social supervision takes accounting institutions as the main body and is entrusted by others to audit and verify the accounting work of relevant units. In the course of practice, if it is found that the accounting treatment of small and medium-sized enterprises does not meet the requirements of relevant laws and regulations, it should be reported to the competent finance and taxation department in time and dealt with seriously. China accounting net (V) Introduction of Professional Managers. Small and medium-sized enterprises in www.canet.com.cn should abandon the "family-style" management concept, learn from the advanced management experience of large enterprises, boldly and actively introduce high-quality management talents such as professional managers, and improve the quality of management teams and management level. After China's entry into WTO, great changes have taken place in China's financial market and product market, and new contents have been added to financial management in many aspects, such as risk management, tax management and insurance management. At the same time, the diversification and internationalization of financial services also provide more choices for financial management. The Law on the Promotion of Small and Medium-sized Enterprises also emphasizes: "The state encourages relevant institutions and universities to train management and production technicians of small and medium-sized enterprises to improve their marketing, management and technical level." Therefore, it is very necessary for small and medium-sized enterprises to pay attention to the accumulation of knowledge and talents. China and accounting net mainly quote: [1] Xu. Problems and countermeasures in financial management of small and medium-sized enterprises [J]. Research on Finance and Accounting, 2007. [2] Fu Zhuo. Financial management mode of small and medium-sized enterprises in China [D]. Xiamen university, 200 1, (09)www.canet.com.cn[3] Chloe Wang. Reflections on the financial management of small and medium-sized enterprises [J]. 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