Problems and Countermeasures in financial manageme

Problems and Countermeasures in the financial management of small and medium-sized enterprises since the reform and opening up, China's small and medium-sized enterprises have developed rapidly. They are the most dynamic growth point in the national economy, have become an important part of the socialist market economy, and their contribution to the development of the national economy is also increasing year by year The introduction of the new enterprise accounting system in 2001 has provided a more clear and feasible basis and guidance for enterprise accounting treatment, which is conducive to the standardization of enterprise accounting treatment in China However, the scope of application of the new accounting system clearly stipulates that, except for enterprises that do not raise funds externally and operate on a small scale, as well as financial and insurance enterprises, enterprises established within the territory of the people's Republic of China shall implement this system Thus, the new enterprise accounting system clearly indicates that it is applicable to enterprises other than small and medium-sized enterprises

Small and medium-sized enterprises are an important part of the national economy and play an important role in promoting economic development and social stability However, due to its small output scale, low capital and technology composition, and large influence by the traditional system and external macro-economy, small and medium-sized enterprises are incompatible with their own development and market economy in financial management It is necessary to draw the attention of all parties and study countermeasures to promote the reform and development of small and medium-sized enterprises in China Therefore, it is urgent to standardize the accounting treatment and financial report of small and medium-sized enterprises and strengthen financial management Below, the author mainly discusses the problems existing in the financial management of small and medium-sized enterprises and the countermeasures

At the end of 1999, led by the State Planning Commission, the National Bureau of statistics, the State Economic and Trade Commission and the Bureau of Finance jointly revised the criteria for the classification of small and medium-sized enterprises The new division standard will no longer follow the industry standard used by each industry in the old standard, but will be unified according to the sales revenue and total assets The classification standard is: the annual sales revenue and total assets of large enterprises are more than 500 million yuan, of which: the annual sales revenue and total assets of super large enterprises are more than 5 billion yuan; The annual sales revenue and total assets of medium-sized enterprises are more than 50million yuan; Those less than 50million yuan are small enterprises According to the new classification standard, according to the statistical data of 1998, among the more than 400000 independent accounting industrial enterprises held by the National Bureau of statistics, the proportion of large, medium and small enterprises in all independent accounting industrial enterprises is 0.21%, 1.96% and 97.83% respectively At present, there are nearly 10million small and medium-sized enterprises in China, accounting for 99% of the total number of enterprises in the country. They provide 60% of the total industrial output value and 40% of the total national profits and taxes, and provide about 75% of urban employment opportunities, becoming the main source of fiscal revenue at and below the county level It can be seen that small and medium-sized enterprises are an important part of the national economy and play an important role in promoting economic development and social stability

Since China's accession to the WTO, small and medium-sized enterprises have encountered unprecedented development opportunities, but also face severe challenges. The core problem of small and medium-sized enterprises is survival The key to maintain the survival of small and medium-sized enterprises lies in the financial management of enterprises Small and medium-sized enterprises are an important and active force in the national economy. Whether in developed countries or developing countries, small and medium-sized enterprises play an extremely important role in their respective economic activities With the gradual deepening of China's economic system reform and major changes in the macroeconomic environment at home and abroad, the current development of small and medium-sized enterprises are facing many new contradictions and problems It is reported that the elimination rate of small and medium-sized enterprises in China in the past five years is 70%, and about 30% of small and medium-sized industrial enterprises are in a state of loss. The reason is that a considerable number of enterprises are caused by weak financial management The reason is that a considerable number of small and medium-sized enterprises in China have ignored the core position of financial management, and the management thought is rigid and backward, so that enterprise management is limited to the production and operation management pattern, and the role of enterprise financial management has not been fully played At the same time, due to the changes in the macroeconomic environment and the impact of the system, small and medium-sized enterprises have encountered certain resistance in strengthening financial management For example, the policy of "discrimination" makes small and medium-sized enterprises and large enterprises unable to compete fairly; The intervention of local governments and industry management departments has made the financial management objectives of small and medium-sized enterprises short-term, and the financial management has been greatly affected by enterprise leaders, etc

problems in the financial management of small and medium-sized enterprises

financing difficulties, serious shortage of working capital

at present, China's small and medium-sized enterprises have initially established a relatively independent and diversified financing system, but the financing difficulties and guarantee difficulties are still the most prominent problems restricting the development of small and medium-sized enterprises The main reasons are: first, too much debt, high financing costs and high risks, resulting in low credit rating and relatively poor credit of small and medium-sized enterprises Second, the preferential policies of the state do not favor small and medium-sized enterprises, which puts them at a disadvantage for a long time Third, most small and medium-sized enterprises are non-state-owned enterprises, and some banks are not enthusiastic about their loans due to the influence of traditional concepts and administrative intervention Fourth, intermediary institutions are not perfect, and there is a lack of financial intermediary institutions and loan guarantee institutions that specifically serve small and medium-sized enterprises

weak financial control and lack of scientificity

weak financial control of small and medium-sized enterprises is mainly manifested in: first, lax cash management, resulting in idle or insufficient funds Some small and medium-sized enterprises believe that the more cash, the better, resulting in idle cash and not participating in production turnover; Some enterprises are in financial difficulties due to the lack of planning and arrangement for the use of funds, the excessive purchase of real estate, and the inability to cope with the funds urgently needed for operation Second, the slow turnover of accounts receivable makes it difficult to recover funds The reason is that there is no strict credit policy, no effective collection measures, and accounts receivable cannot be cashed or form bad debts Third, inventory control is weak, causing capital stagnation Many small and medium-sized enterprises adopt microcomputer control of all digital broadband electro-hydraulic servo valve industry. The capital occupied by the inventory at the end of the month often exceeds more than twice its turnover, causing capital stagnation and turnover failure Fourth, money is not heavy, and the loss of assets is serious Many managers of small and medium-sized enterprises are not in place in the management of raw materials, semi-finished products, fixed assets, etc., no one will investigate the problems, and the waste of assets is serious

the management mode is rigid and the management concept is obsolete.

the typical management mode of small and medium-sized enterprises is the high unity of ownership and management rights. The investors of enterprises are also operators. This mode is bound to have a negative impact on the financial management of enterprises A considerable part of small and medium-sized enterprises belong to the nature of individual and private enterprises. In these enterprises, the centralization of power of enterprise leaders is serious, and there is a lack of due understanding and Research on the theoretical methods of financial management, resulting in their indiscriminate responsibilities, ultra vires, financial management confusion, lax financial monitoring, accounting information distortion, etc Enterprises do not have or cannot establish internal audit departments, and even if they do, it is difficult to ensure the independence of internal audit The management ability of enterprise managers to unload the oil collector is poor, and the management quality is poor, and the management thought is backward Some enterprises have not incorporated financial management into the effective mechanism of enterprise management and lack modern financial management concepts, which makes financial management lose its due position and role in enterprise management

countermeasures to solve the problems existing in the financial management of small and medium-sized enterprises

the problems existing in the financial management of small and medium-sized enterprises in China are caused by the macroeconomic environment and their own dual factors Therefore, we should start from the following aspects:

the government actively supports small and medium-sized enterprises, formulates and improves policies conducive to development

small and medium-sized enterprises have small business scale, poor ability to resist market risks

small and medium-sized enterprises have small business scale, poor ability to resist market risks, and poor ability to operate assets, which determines that their financing credit through the market is very low, Objectively, the state is required to give appropriate support through a stable financing mechanism No matter industrialized countries or newly industrialized countries, they do not allow small and medium-sized enterprises to survive or die, but take supporting the development of small and medium-sized enterprises as an important economic policy It is gratifying that China has begun to work in this area For example, not long ago, China issued several policy opinions on encouraging and promoting the development of small and medium-sized enterprises

establish a management committee for small and medium-sized enterprises and set up specific funds

establish a management committee by region to break the management pattern of different industries Specific funds include guarantee funds, mutual funds, etc. their sources of funds can be the membership fees of financial institutions at all levels of government and small and medium-sized enterprises, implement closed management and operation of funds, and centrally support the development of small and medium-sized enterprises

establish a credit guarantee system for small and medium-sized enterprises

small and medium-sized enterprise credit guarantee institutions are intermediary organizations with the purpose of service, and cannot take profit as the main purpose. The collection of guarantee fees cannot be at the cost of increasing the financing costs of small and medium-sized enterprises The State Economic and Trade Commission, the State Administration for Industry and commerce, the Ministry of Finance and other 10 ministries and commissions jointly issued the "several opinions on strengthening the credit management of small and medium-sized enterprises" not long ago, which will undoubtedly guide small and medium-sized enterprises to enhance their credit concept, improve their credit status, create a good credit environment, and speed up the construction of China's socialized credit system

strengthening fund management and financial control

strengthening fund management should be implemented in all functional departments within the enterprise

the use and turnover of funds involve all aspects within the enterprise. Enterprise managers should change their ideas and realize that managing, using and controlling funds well is not only the responsibility of the financial department, but also a major event related to all departments and production and operation links of the enterprise

improve the efficiency of the use of funds, so that the use of funds to produce the best effect

improve the efficiency of the use of funds, so that the use of funds to produce the best effect First of all, the source and application of funds should be effectively coordinated For example, we must not use short-term loans to purchase fixed assets, so as not to cause difficulties in capital turnover Secondly, we should accurately predict the time of fund recovery and payment For example, when accounts receivable can be recovered and when they can be purchased, we should know well, otherwise, it is easy to cause imbalance between revenue and expenditure and financial constraints Finally, we should allocate funds reasonably, and the occupation of working capital and fixed capital should be effectively coordinated

strengthen property control

establish and improve the internal control system of property and material management, establish standardized operating procedures in material procurement, requisition, sales and sample management, plug loopholes and maintain safety The management and recording of property must be separated to form a strong internal check. Asset management, recording, inspection and verification must not be entrusted to one person In combination with the characteristics of the enterprise, the method of regular inventory and turn inventory is adopted to check the actual quantity of property and materials, properly deal with inventory gains and losses, and ensure that the accounts are consistent with the facts

strengthen the management of inventory and accounts receivable

in recent years, many small and medium-sized enterprises have fallen into the dilemma of operation and lack of working capital. Strengthening the management of inventory and accounts receivable is an important solution Strengthen the management of inventory funds, reduce obsolete inventory materials as much as possible, avoid capital stagnation, and ensure the optimal structure of inventory funds with scientific methods Strengthen the management of accounts receivable, investigate and evaluate the credit of domestic credit customers, regularly check accounts receivable, formulate perfect collection management methods, and strictly control the aging of accounts For dead and bad debts that have been on account for a long time, proper accounting treatment should be carried out in accordance with the provisions of the financial system after obtaining conclusive evidence

improve the accounting treatment methods of small and medium-sized enterprises, simplify financial reports

establish a financial accounting statement system based on the tax statement mode

formulate the accounting treatment and financial reporting rules of small and medium-sized enterprises, which involves the problem of how to reach consensus with the tax requirements The importance of tax accounting in small and medium-sized enterprises