Abstract: Financial management is an important part of enterprise management, financial management is directly related to the survival and development of enterprises. The article discusses the problems of small and medium-sized enterprises in financial management, and puts forward corresponding countermeasures recommendations.
Keywords: small and medium-sized enterprises; financial management; problems; countermeasures
China's small and medium-sized enterprises, after more than 20 years of reform and opening up the development of the country, has made brilliant achievements, and occupies a pivotal position in China's national economy. However, the small and medium-sized enterprises are struggling, the failure rate is high, the average life expectancy of enterprises is only 3-5 years, an extremely important reason lies in the financial management work can not keep up with the needs of enterprise development. In the market economy, the enterprise to survive, develop and profit must establish a modern enterprise system, scientific capital operation, and all this needs to strengthen financial management.
I, small and medium-sized financial management problems
(a) the lack of a clear direction of industrial development, the lack of scientific proof of project investment
One is the one-sided pursuit of "hot" industry, regardless of the objective conditions and their own capabilities, ignoring the national macro-control of the impact of enterprise development. The second is the lack of scientific planning and deployment of the project's investment scale, capital structure, construction cycle and sources of funds, and the lack of reliable forecasts of the cash flow that will occur during the construction and operation of the project, which was hastily launched. Once the country to increase macro-control efforts, tighten bank credit, so that the construction funds can not be in place as scheduled, the enterprise will face a dilemma, or even cause huge economic losses. In recent years, many enterprises invested in steel, aluminum, cement and other projects due to financial difficulties and died, or "cut meat" sold or become permanent "under construction", not only the enterprise itself has paid a heavy price, but also dragged some banks into the quagmire.
(2) shortage of funds, financing difficulties
Currently, China's small and medium-sized enterprises due to the small scale of investment, capital and technical composition of the low, in the process of financing encountered a lot of difficulties, which restricts the development of small and medium-sized enterprises. The main reason for financing difficulties on the one hand, from the quality of the enterprise itself, small and medium-sized enterprises, own capital is insufficient, not high reputation, credit rating is generally low; on the other hand, the state-owned commercial banks on the approval of loans for investment in fixed assets is too centralized, coupled with the proportion of non-performing loans is higher, it is difficult to collect the loan, and the state in the small and medium-sized enterprise credit guarantee system is not yet sound, making the financial institutions Unable to effectively prevent bad business behavior, in order to reduce the risk of loans, financial institutions have to take a cautious attitude. Secondly, small and medium-sized enterprises do not have private financing channels, and most of them in areas with more private investment are adopting the method of private fund-raising to solve the capital problem, relying entirely on personal credit and high interest rates, with very high financing costs and relatively much higher risks. This results in a serious shortage of funds for small and medium-sized enterprises, investment capacity is relatively weak, hindering the development of small and medium-sized enterprises.
(C) rigid management mode, old management concepts
On the one hand, the typical management mode of small and medium-sized enterprises is the high degree of unity of ownership and operation, the investors of the enterprise is also the operator, and this mode has brought negative impact on the financial management of the enterprise. A considerable portion of small and medium-sized enterprises belong to the individual, private nature, in these enterprises, business leaders centralized, family management phenomenon is serious, and for the theoretical approach to financial management lack of due knowledge and research, resulting in their responsibilities are not divided, overstepping their authority to act, resulting in chaotic financial management, financial monitoring is not rigorous, distortion of accounting information, and so on. Enterprises do not or cannot establish internal audit department, even if there is, it is difficult to ensure the independence of internal audit. On the other hand, the management ability and management quality of enterprise managers is poor, backward management ideas. Some enterprise managers based on their own reasons, did not incorporate financial management into the effective mechanism of enterprise management, the lack of modern financial management concepts, so that financial management has lost its due status and role in enterprise management.
(D) weak management foundation, internal control is not strict
Since the small and medium-sized enterprise management mode of ownership and operation in one, which makes the enterprise in the decision-making and management with a great deal of subjective arbitrariness, the lack of a set of standardized financial control methods with operability. First, lax cash management, resulting in idle or insufficient funds. The second is the slow turnover of accounts receivable, resulting in difficulties in the recovery of funds. The reason is that there is no strict credit sales policy, lack of strong collection measures, accounts receivable can not be honored or the formation of doubtful accounts. Third, inventory control is weak, resulting in stagnant funds. Fourthly, money is not important, the loss of assets is a serious waste. Many managers of small and medium-sized enterprises, raw materials, semi-finished products, fixed assets and other management is not in place, the financial management responsibilities are not clear, a serious waste of assets.
(E) the quality of accounting personnel is low, the lack of senior financial managers, financial institutions set up irrational
Most small and medium-sized accounting personnel have not been specialized, systematic knowledge of education, the phenomenon of undocumented on duty is extremely serious. Finance and accounting is not divided, there is no full-time financial management personnel, financial management functions by the accounting staff or business executives part-time, resulting in internal management confusion, unclear responsibilities.
Two, strengthen the financial management of small and medium-sized enterprises countermeasures recommendations
(a) market-oriented, using scientific investment strategy
On the one hand, in order to avoid the investment risk, small and medium-sized enterprises should be sound financial management, expanding the scale of the right time. The growth process of small and medium-sized enterprises is full of risks, small and medium-sized enterprises to develop, the key is to steady financial management, scientific investment. Risky projects with a large degree of risk and risky programs facing uncertainty in decision-making should be actively avoided. In practice, small and medium-sized enterprises should take short and medium-term investment mode as far as possible, strengthen the investigation and demonstration of investment projects, and constantly optimize the investment program. In addition, it is necessary to seize the favorable opportunity to realize the development and expand the scale. Secondly, it is to focus on advantages and specialize in business. Small and medium-sized strength is weak, often unable to operate a variety of products to diversify risk, but can focus on selecting the market segments that enable enterprises to play to their strengths to specialize in business, increase market share, can also achieve success in business. Again is to pick up the pieces, with their own products to fill the market gaps, make full use of the small business "small boat is good to turn around" the flexibility of the characteristics of the "no one I have" principle, looking for market gaps in the investment, and then you can expand the space, to the direction of specialization! On the other hand, SMEs should invest in the domestic market. On the other hand, SMEs should mainly invest internally. First, the new product trial production investment, small and medium-sized products, its market share is limited, the enterprise fist product also has a certain life cycle, if there are constantly marketable new products on the market, and at the same time continue to phase out the old products, so that the competition in the market is always in an invincible position. Second, the investment in technology and equipment upgrading should be emphasized as a long-term strategy for enterprises. Third, the investment in human resources, especially management personnel and technical personnel have, is the magic weapon of the enterprise to win. Recruitment can be used to introduce talent; can also be through the training of existing internal personnel to improve their skills and qualities.
(2) Optimize the external environment of enterprises and broaden the financing channels of enterprises
1, the government should improve the laws and regulations and related policies conducive to the development of small and medium-sized enterprises as soon as possible. At present, our country has issued "on encouraging and promoting the development of small and medium-sized enterprise a number of policy opinions", "small and medium-sized enterprise promotion law", visible in our country in this area of work has achieved certain results, I hope that the government can speed up the process, and continue to improve the policies and regulations, to give small and medium-sized enterprises more equal opportunities to compete. Small and medium-sized enterprises can set up institutions with financial nature, such as the establishment of small and medium-sized enterprise fund, so as to broaden the enterprise's financing channels, to a certain extent, can solve the financing difficulties of the predicament.
2, the establishment of small and medium-sized enterprise credit guarantee system. The credit guarantee for small and medium-sized enterprises is an intermediary organization with the purpose of service, the collection of guarantee fees can not be charged at the expense of increasing the financing cost of small and medium-sized enterprises, in the process of establishing the credit guarantee system should be combined with other forms of credit guarantee system, to provide diversified services for the financing of the enterprise guarantee, in order to provide more opportunities for financing, which can to a certain extent to solve the problem of financing difficulties of enterprises.
3, the financial sector to become the promoter of private economic development. In order to better play the role of the financial sector, financial institutions should effectively change their concepts, break through the traditional concepts and systemic barriers, accelerate the pace of reform of the credit management system to adapt to the needs of private economic development. The healthy development of the market economy, for small and medium-sized enterprises to inject great vitality, the financial sector to break through the concept of absorbing the introduction of international and domestic advanced financial products, such as patent loans, brand pledge loans and other businesses, to better promote the healthy and rapid development of small and medium-sized enterprises, to improve the decision-making process of the loan, and to establish a credit approval mechanism suitable for small and medium-sized enterprises. To establish a combination of incentives and constraints of credit management mechanism, improve the credit marketing enthusiasm of credit personnel.
(C) all-round transformation of the concept of enterprise financial management
The concept of financial management is the values guiding the practice of financial management, is the starting point for thinking about financial management issues. In the face of the new financial environment, if the enterprise can not change the concept of financial management, it is difficult to win a place in the fierce market competition.
1, establish the concept of people-oriented financial management. Emphasis on human development and management, is the basic trend of modern management. Every financial activity is initiated, operated and managed by the people, and its effectiveness depends mainly on the knowledge, wisdom and efforts of the people. Therefore, in financial management to establish a "people-oriented" thinking, abandon the "object-centered" concept, to understand people, respect for people, standardize the behavior of financial personnel, the establishment of responsibility and rights combined with the financial operating mechanism, strengthen the incentives and constraints on people, the purpose is to fully mobilize people to scientific and technological development and management. The purpose is to fully mobilize people's scientific financial management of enthusiasm, initiative and creativity.
2, establish the concept of capital diversification of financial management. After the accession to the WTO, the capital market is open, the market access threshold is lowered, a large number of foreign banks and foreign enterprises will be stationed in China, a large amount of foreign capital will flood into the Chinese market. Small and medium-sized enterprises should seize this opportunity to actively seek cooperation with foreign capital, improve the level of management, diversify the main body of investment, optimize the corporate governance structure.
3, establish the concept of risk management. In the modern market economy, due to the role of the market mechanism, the interests of any one market entity are uncertain, there is the possibility of suffering certain economic losses, that is, inevitably have to bear certain risks. In the era of knowledge economy, the risk faced by enterprises will be greater. In financial management to establish the concept of risk, good at environmental changes brought about by the uncertainty of scientific prediction, foresight to take various precautions, so that the possible losses suffered by the minimum, to improve the ability to withstand risk. Small and medium-sized enterprises to prevent risk there are two important ways: one is to develop a detailed financial plan, through the plan to determine the uncertainty factors, so that the enterprise to produce a response to the changes in the mechanism to reduce the impact of future risks; the second is to establish a risk prediction model, foreseeable and systematic identification of possible risks, become reactive to proactive, to prevent the problem before it occurs.
(4) Strengthen the management of funds and accounts receivable, and enhance financial control
1. Improve the operating efficiency of funds, form a reasonable fund structure, and determine a reasonable proportion of liabilities, so that the application of funds to get the best results. In improving the fund structure at the same time to maintain a certain amount of cash-paying capacity to ensure the flexibility of daily capital utilization of the turnover, to prevent market fluctuations and loan difficulties in the constraints, to determine the optimal amount of cash holdings. Generally speaking, highly liquid assets yield low returns, which means that enterprises should minimize idle funds, even if they do not invest them in the assets of the enterprise should be invested in other assets that can generate income, to avoid losses caused by idle funds. When the actual cash balance is greater than the optimal cash holdings, the actual cash balance can be adjusted by repaying debt, investing in securities and other strategies; conversely, when the actual cash balance is less than the optimal cash holdings, short-term financing can be used to adjust the actual cash balance.
2, strengthen the management of accounts receivable. Accounts receivable occurs, the enterprise should take various measures to try to collect the money on time, otherwise it will be too long in arrears and the occurrence of bad debts, so that the enterprise suffers losses. Conduct an aging analysis of accounts receivable and prepare an aging table to see how much is owed within the credit period and how much is owed beyond the credit period. For accounts receivable of different time, enterprises should adopt different collection methods and formulate economic and feasible collection policies. For possible bad debt losses, bad debt provisions should be made in advance, and the impact of this factor on profit and loss should be fully estimated.
3, strengthen property control. Establishment of the internal control system for the management of property and materials, the establishment of standardized operating procedures in the procurement of materials, collaterals and sample management, to plug the loopholes and maintain security. The management of property and records must be separated, with a view to forming a strong internal check, never leave the asset management, records, inspection and verification by a person to do. Regular inspections and inventories should be conducted to expose problems and promote improved management and accountability. Finally, irregular checks should be made to urge managers and record keepers to remain vigilant and not negligent.
(E) strengthen the construction of accounting team, improve the management quality of the whole enterprise
At present, many small and medium-sized accounting accounts are unclear, information distortion, financial management confusion; business leaders, the phenomenon of bribery and bribery; enterprises to set up off-the-books accounts, false, resulting in a false profit and loss or false loss and gain of false, and so on. The reason for this is that the financial foundation of the enterprise is weak, the quality of accounting staff is not high, and subject to the leadership, unable to exercise their right to supervision; Secondly, the business leaders of the legal system is weak, ignoring the financial system, the seriousness of the financial discipline and mandatory. In order to solve the above problems, firstly, small and medium-sized enterprises should strictly implement the system of employees' pension, medical and other security, in order to attract more senior financial management personnel to play a role in small and medium-sized enterprises. Secondly, the financial and accounting personnel of enterprises should strengthen the training and ideological and political education, especially study the Accounting Law, Accounting Standards, Accounting System, enhance the supervision consciousness of the financial and accounting personnel, and require the accounting personnel to be licensed. Thirdly, business leaders should continuously improve their legal awareness and enhance the concept of legal system. Only through the enterprise financial personnel and leadership personnel and even the whole *** with efforts to improve the management of enterprises, improve financial management, improve the competitive strength of enterprises.
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