At present, the financial management of small and medium-sized enterprises in China is not perfect and there are many problems. The revenue and expenditure management of funds has become a stumbling block to realize the sustainable profit of enterprises, and its main problems exist in the following aspects:
(a) The financial control is weak, too much capital stagnates in the turnover process, and the investment in growth projects is not concentrated and insufficient. Financial risk awareness is weak, and enterprises always operate in high-risk areas.
This is manifested in four aspects: first, excessive debt; Second, the turnover of accounts receivable is slow and it is difficult to recover funds; Third, the inventory control is weak, resulting in sluggish funds and ineffective turnover; Fourth, money is more important than weight, asset losses are serious, financial management responsibilities are unclear, and assets are seriously wasted.
(2) Enterprise project investment lacks scientific demonstration, clear direction and coordination strategy. First, regardless of the objective conditions and their own capabilities, they unilaterally pursue certain industries, which makes the investment uncoordinated and cannot play a role in promoting the growth of enterprises. Secondly, there is a lack of scientific planning and deployment of the investment scale, capital structure, construction period and funding sources of the project, and a lack of reliable prediction of the cash flow that will occur during the construction and operation of the project. The comprehensive effect of various investments does not meet the requirements of sustainable development.
(3) Financial systems such as budget control and fund management are not in place and the direction is not comprehensive; At the same time, it shows some problems such as insufficient occlusion and missing links between budget planning and implementation. At present, the budget system of many small and medium-sized enterprises is not perfect, which not only lacks quota management and sound analysis and accounting system for the consumption of materials, working hours and power, but also is limited to cost control, which can not promote the rapid development of enterprises at all. Even if funds are invested for income growth, the budget implementation process is disorderly and there is no corresponding growth result. There are many reasons for this. The objective reason lies in the nonstandard workflow and the lack of necessary financial supervision mechanism. The subjective reason is that enterprise managers do not attach importance to and act as financial control means to coordinate fund management, such as budget.
Second, break through the growth bottleneck and improve the principles and methods of financial management
In order to realize the sustained growth of enterprise income, optimizing financial management is an urgent task to solve the above outstanding problems and break through the bottleneck of development. The growth strategy based on technical improvement and business model fundamentally needs the support of reasonable financial management. In view of the main problems raised above, enterprises should pay attention to the following points in the process of improving financial management:
(A) from the management concept to break the conservative concept, to provide financial support for growth.
The concepts of profit and stable income growth are completely different from those of simply focusing on cutting costs and improving productivity. The latter is mandatory and internally driven; In order to achieve sustainable growth more actively, enterprises need creativity and the ability to investigate and study enterprise development from outside to inside. In view of the phenomenon that many small and medium-sized enterprises stick to the traditional conservative management mode and overemphasize cost reduction, the best way to deal with it is to organically combine it with income generation and provide reasonable financial support in investment and business activities. This requires all senior managers to attach importance to cost management, cash management and asset management, and at the same time, play a leading role from a broader perspective to increase income.
(b) Take sustainable development and healthy growth as the goal, strengthen the control concept and realize comprehensive financial management.
The so-called sustainable development of an enterprise actually refers to the sustainable development of the business that an enterprise is engaged in or the business that creates wealth, and it is the overall social and economic value of the business, that is, the ability to make profits and create wealth, or the continuous growth of the ability to allocate resources. Benign growth is the concrete manifestation of sustainable development, that is, efforts are made to create new competitiveness and competitive advantage of the company, thereby optimizing the profit elements of the company, improving the skills of employees and enhancing their confidence in the enterprise.
Basic management, especially financial management, is the basis for the healthy development of enterprises. All departments should accept the guidance of the financial department and be bound by the financial system in terms of rational use of funds and saving capital expenditures, so as to ensure the improvement of economic benefits of enterprises. The sustainable development of small and medium-sized enterprises requires that financial management mainly uses the form of value to manage business activities. Through the form of value, and with the help of various control and financial budget and other related means, all material conditions and business process results of enterprises are reasonably planned and controlled, so as to achieve the purpose of improving enterprise efficiency and increasing wealth. Therefore, as an independent aspect of enterprise management, financial management should realize the comprehensive and overall role of its management.
(3) Relocate the situation and actively seek growth channels.
In enterprise management, whether the decision is proper, whether the operation is reasonable, whether the technology is advanced and whether the production and sales are smooth should be quickly reflected in the financial indicators of the enterprise. Reasonable financial management can quickly reflect the production and operation of enterprises, reposition the market in time, adjust the matching business model and capital investment, and actively seek growth channels. For example, if the products produced by enterprises are marketable and reliable in quality, they can promote the development of production, realize the prosperity of production and marketing, accelerate the capital turnover and enhance profitability, which can be quickly reflected through various financial indicators. The financial department should inform the business leaders of the changes of relevant financial indicators in a timely manner through its own work, so that the work of all departments can be brought into the track of improving economic efficiency and strive to achieve the growth goal of financial management. In the face of new competitors, enterprises should be more sensitive to reflect the changes in sales and other aspects through various financial indicators, update and expand market positioning, and adjust the existing capital allocation according to the market segmentation of customer needs.
Third, build a global management framework based on the growth budget of enterprises.
Growth budget is a financial management control method to realize income growth by controlling the process of fund allocation, and it is also an effective tool to rationally allocate resources and achieve the balance between short-term and long-term goals. The most common budget item related to growth is research and development. Like most items in the budget, research and development is considered as a cost item. However, this growth requires that the cost not only occurs in the R&D department, but also the increased resources should be distributed in all aspects of the budget table. In fact, the cost of capital invested by many enterprises cannot be correlated with income growth, and the role of most important investments has not been reflected, or in some cases, it has not played a role conducive to enterprise growth. Making the growth budget requires managers to discuss the primary tasks of their respective departments, the resources used for income growth within the enterprise, and balance the distribution of tasks and resources in order to obtain higher income growth. This is a different way from the past, and it is also an effective way to decide how to provide financial support for the company's growth, which can avoid the problem that the expenditure for growth is fragmented and has no priority. The steps for preparing the growth budget are as follows:
First, make a list of resources that can be used for income growth, allocate them to various departments, and classify them in short-term, medium-term and long-term terms. For example, suppose that as enterprise managers, we plan to seize the market share of our competitors and achieve current and long-term income growth. Then, in the growth budget, it may be necessary to increase certain funds for product development and additional advertising investment. To achieve medium-term income growth, we can find powerful partners and reach an exclusive sales agreement for new products to help gain more market share; Long-term growth focuses on product development, packaging or product functional design, allocating corresponding necessary funds in the growth budget, and tapping sustainable long-term sources through the development of new products.
Second, to achieve income growth as the primary task, and included in an independent project.
Third, list the related expenses of each project in detail by quarter. If the long-term investment cost of related growth projects has been clearly allocated, the growth budget must indicate the cost of the cost center and the expenses incurred by functional departments such as R&D, product testing, approval procedures, marketing, advertising and sales.
Fourth, determine the person in charge of the key part of the growth project, as well as their responsibilities and term of office. , to ensure the implementation of growth budget and performance tracking, and timely adjust and summarize key points according to market segmentation data.
From this point of view, on the basis of the understanding of managers at all levels to promote benign growth, the growth budget is used to overcome the weakness that the growth plans of various departments cannot be effectively integrated and the overall income growth of enterprises cannot be realized, so as to clarify the direction and long-term planning of sustainable development of enterprises. By compiling and effectively implementing the real-time growth budget, different departments are integrated, so that managers can cooperate with each other, consider the allocation of funds from a global perspective, optimize financial management, build a global management control framework, and realize the development path of enterprises with sustainable competitive advantages.
For customized original articles, click >>& gt For those who need to publish articles quickly, click >>& gt.
The home for civil servants is very successful and has a good reputation. Here, you can find the latest articles and the most representative articles. Of course, because it is free and open source, everyone can learn, learn and use it together. If you need an original article of your own, please click the above link to get professional secretarial writing service, and click the following icon to share it in your own space.