Small-and-Medium-Enterprise-Financial-Management-Problems-and-Countermeasures--10232.doc

Small and Medium Enterprise Financial Management Problems and Countermeasures Abstract: At present, small and medium enterprises on the national economy and social stability and play a decisive role, but also in financial management there are many problems, such as the financial system is not perfect, fixed asset management is in chaos, etc., to tackle this problem, this paper strengthen the Governments regulatory and financial accounting, etc. to make concrete policy proposals. Key words: small and medium enterprise financial management system Abstract: At present, the small and medium sized enterprise social stability is playing to the national economy and the pivotal role, but also has many problems in the financial control, like financial system not perfect, fixed asset management chaotic and so on, in view of this question, this article from enhancement aspects and so on government supervising and managing and financial calculation puts forward the concrete countermeasure proposal. Keywords: Small and medium sized enterprise Financial control System At present, the large number of small and medium enterprises, for national economic development and social stability plays an important role. However, because of widespread regional distribution of industry, output of small-scale, capital and technology constitute a relatively low and other factors, therefore, must draw attention to in order to promote Chinas reform and development of SMEs. Small and medium enterprises in China, due to address urban employment accounted for a net increase of 75% of the workforce, therefore, has led to uneven quality of the staff, on the other hand, there are a considerable number of managers to overlook the central position of financial management, management thought rigid, backward, random strong financial management to enable enterprises to manage limited to the production and operation-based management pattern. In addition, the local government sector management departments, a large number of interventions, so that SMEs can target short-term financial management, financial management by the impact of business leaders is too large, making the financial management of SMEs in China the status quo is not optimistic. Strengthen the financial management of SMEs in the imminent recovery. 1. SME financial management of the main problems existing in 1.1 The financial system is not sound. As the SMEs financial accounting and financial systems of the space, accountants their own quality varies, most enterprises lack a complete internal financial system so that random-based accounting. If the original certificate management, quota management, measurement management, and acceptance no system to speak of, the financial sector functions and powers, accountants of personal responsibility, the financial processing system, audit system, it is also chaotic, so that accounting information distortion, resulting in financial Management has lost its rightful place in business management and role. 1.2 Asset management chaos. Acquisition of fixed assets without registering or failing to obtain an invoice can not be accounted for resulting in current account does not deserve. 1.3 Cash management chaos. Most SMEs often lack the cash or idle, the low level of credit management, the lack of effective management measures, corporate finance staff free to withdraw cash settlement of a long-term non-cash income and expenses are not accounted for such phenomena as flow of funds hindered. 1.4 Receivables its management. Sluggish due to funding, most of the material procurement and sales of cash transactions, resulting in high accounts receivable, thereby increasing the number of bad debts. 1.5 rigid management model, management concepts are outmoded. On the one hand, the typical management model for SMEs is high degree of ownership and management and a unified, corporate investors is that the operators at the same time, this model is bound to the enterprise financial management of the negative impact. SMEs are a significant part of the individual, the private sector, in these enterprises, business leaders centralization serious phenomenon, and for the financial management of a lack of proper understanding of theoretical approaches and research, resulting in their duties, regardless, ultra vires act, resulting in financial management of confusion, lack of strict financial control, accounting information distortion. Enterprises do not have or can not establish internal audit department, if any, is also difficult to ensure that internal audits independence. On the other hand, business managers management capabilities and management of poor quality, management, backward thinking. Some corporate managers based on their own reasons, not financial management into an effective mechanism for enterprise management, the lack of modern financial management concepts, so that financial management has lost its rightful place in business management and role. Reposted elsewhere in the paper for free download http:/ 2. To solve the financial management of specific measures for SMEs 2.1 Government to strengthen the relevant laws and regulations. Small and medium enterprises small and poor to resist risks, financial management is also clearly at a disadvantage, in order to protect the healthy development of small and medium enterprises to play its due role, our government should strengthen legislation and related policies for SMEs introduced, from an objective requires States to adopt the stability of financial institutions to give appropriate support and accelerate the establishment of SME credit guarantee system. In the establishment of SME credit guarantee process, should establish a credit guarantee system and the establishment of other social service system. Financing for SMEs to provide various forms of services, such as to allow qualified enterprises to issue bonds, inventory and receivables as collateral, patents as collateral guarantees. 2.2 The strengthening of financial management. 2.2.1 First, to strengthen fund management. Accurately predict recovery of funds and timing of payments. Such as the purchase of accounts receivable to recover time and time effective combination of funding sources and use of effective co-ordination, such as the borrower can not be used to buy fixed assets, otherwise easily lead to financial imbalances, capital constraints. 2.2.2 enhance inventory and accounts receivable management. In recent years, many SMEs have been facing the plight of a shortage of funds, in order to resolve this difficulty, first of all enhance inventory management, and try to run down inventories, resources, to avoid financial slack as far as possible to achieve zero inventory standards. Strengthen the accounts receivable management, regular reconciliation of accounts receivable, and strictly control the aging management. 2.2.3 From simple accounting to full participation in the transfer of business decision-making. Corporate accounting department as an enterprise economic information center, we must actively participate fully in the decision-making businesses. The first is to participate in the investment decisions. From the effectiveness point of doing the project feasibility study. The second is to participate in the production decisions, analysis of the marginal contribution of each product. The third is to participate in the marketing decision-making, expanding and improving market share and money withdrawn from circulation rates, based on the development of policies and measures to stimulate sales. Fourth, to participate in the allocation of decision-making, and correctly handle the state, enterprises, the relationship between the interests of workers. 2.2.4 After the accounts in the prior forecast, things to control, and timely analysis of the transfer. Predicted in advance, focusing on the establishment of market information feedback mechanisms, make sure that market forecasts, including market information collection, selection, feedback, etc.; the same time, measured in accordance with market conditions, the use of modern management methods, and doing the financial budget preparation. Thing to control, in accordance with the objective of splitting the financial budget of the responsible units of the implementation and impact objectives of systematic monitoring of various factors, control; the same time to carry out financial analysis, the responsibility of units and responsibilities of the various points to make a comprehensive analysis, propose additional sales, savings, saving suggestions and countermeasures, in order to better play the role of advisor and assistant to the accounting department. 2.2.5 from a simple accounting management to the overall financial management of the transfer. The traditional conception of personal finance to accounting functions simply positioned on the accounting, that as long as doing a good job even if the report submitted to the completion of tasks. This is totally inadequate market conditions, and to take advantage of this feature of the infiltration of accounting work, market-oriented, with financial management as a means to comprehensively and actively participate in business activities, the basic work of enterprise management and management level to a new level, in order to better services for the enterprises to improve their economic efficiency. 2.3 focus on strengthening the Accountant ranks the accumulation of knowledge and talent. At prese