Financial management is managed from the perspective of funds, emphasizing the appreciation of funds under the condition of a virtuous circle of funds. People are increasingly evaluating the quality of enterprise management from the operation of enterprise funds.
Two, financial management can not simply emphasize reducing costs, expenses and expenses.
Cost management is one of the key points of financial management. In the traditional sense, cost management is to save costs and reduce expenditures. Yes, reducing costs will inevitably increase profits, but increasing costs does not mean that profits will definitely decrease.
Third, attaching importance to financial management is not to ignore and deny the role of other management work in enterprises.
Focusing on financial management and emphasizing the central position of financial management is by no means ignoring or denying the role of other management work in enterprises.
The main links to extend the data financial management cycle include:
(1) Make financial decisions, that is, make action plans for various financial problems of enterprises, that is, make project plans.
(2) To formulate budgets and standards, that is, to formulate plans and standards with specific figures for various production and business activities during the planned period, that is, to formulate periodic plans.
(3) Record the actual data, that is, record the actual capital circulation and turnover of the enterprise, which is usually the function of accounting.
(4) Calculate the standard that should be achieved, that is, calculate the working level that should be achieved according to the changed actual situation. Such as "standard cost of actual business volume" and "budget limit of actual business volume".
(5) compare the standard with the actual situation, that is, compare the above two amounts to determine the difference, thus realizing the exception.
(6) Analysis and investigation of differences, that is, in-depth investigation and study of differences to find out the specific reasons for differences.
(7) Action, that is, taking action according to the causes of the problems, correcting the deviation and making the activities develop according to the established goals.
(8) Evaluation and assessment, that is, according to the differences and their causes, the performance of the executed person is evaluated and assessed.
(9) Incentive, that is, according to the results of evaluation and assessment, rewards and punishments are given to the executors to motivate their work enthusiasm.
(10) forecast, that is, after encouragement and action, economic activities will change, and it is necessary to re-forecast according to new economic activities, so as to provide a basis for the next decision.
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