On the Development of Modern Financial Management

[Abstract] traditional Financial Management to meet the new situation, there must be a new Development ideas. The Development of ideas can be summarized as: changes to the original concept of Financial Management; strengthen intellectual asset management; to the modern enterprise Financial Management more scientific; establish a network of Financial Management; the implementation of financial reconstruction strategies.

[Keywords:] the modern enterprise; Financial Management; Financial Reconstruction

First, an update of financial management concepts

Knowledge economy era, Information technology has changed the living environment of the enterprise. Development of the Internet, Information, satellite communications and other new technological innovation, changing the traditional concept of time and space, the enterprise's financial management environment has undergone major changes in the financial management of the enterprise is no longer confined to the region, and to strengthen the analysis of changes in world Economic situation, to grasp and understand the relevant Information of all kinds. corporate financial management must make the appropriate changes, the most critical is enterprise financial management concepts to fully update. enterprises to the new financial concepts and financial management concepts for modern financial management. should be people-oriented concept (to be combined Zequan Li and strengthen the incentives and constraints on human, active play and arouse people's enthusiasm, initiative and creativity), the concept of Information (to use the most advanced Information technologies, timely, comprehensive, accurate and rapid access to information for effective financial management), the concept of intangible assets (to strengthen corporate reputation, the management of patents and other intangible assets), risk financial management concepts (enhanced risk awareness), knowledge manage their money (to strengthen the new technology, the application of new knowledge), the concept of intellectual capital (to attach importance to the management of intellectual capital), the phase competition and cooperation unified concept (business to adapt to the sharing of knowledge and technology and openness, in the common interest, strengthen cooperation with other enterprises, competition between the formation of companies "win-win").


Second, the optimization of the efficiency of financial management

In specific areas of production, the effect of financial management to optimize performance in specific focus on "three-way" to improve on, that focus on Economic efficiency, good or bad Economic results-oriented, focusing on the level of Economic efficiency. Enterprises and also to have the management of knowledge-based economy to adapt ideas and management awareness. in the management of consciousness, to have the whole, that is cost-effective awareness, strategic awareness, market awareness, reform, competition, Development of consciousness, time consciousness, human consciousness, science and technology awareness, the sense of quality, brand name awareness.


Third, changes in financial management object elements

Enterprise Financial Management Objects to the tangible factors of production oriented to the intangible factors of production-based. The traditional management is mainly on the labor and materialized labor (working tools and working objects) and other tangible factors of production management, production process and with the social wealth The results of the scientific and technological content increases, the scientific and technological knowledge and other intangible factors of production to a company's survival and Development of more and more important to the development of knowledge and effective use of resources has become an important management issue. In the knowledge economy, knowledge, human values ​​and more than the value of the role and function of capital, knowledge, productivity has become a key factor in Economic development, any enterprise must pay attention to the development and utilization of knowledge resources, quickly direct knowledge into productivity.


Fourth, financial management, risk aversion

In the new century, to avoid risks and gain access to the financial management of enterprises must consider two aspects. Companies attention and use of knowledge, a new access to technology, a new product development, no doubt can provide a high income. but high income and high-risk attendant in the market economy, full high-yield low-risk projects do not exist. Therefore, the enterprise financial management in pursuit of higher returns at the same time, strengthen risk prevention and evade. enterprises is the key to avoiding financial risks:
(A) Improve financial strength
With strong financial strength is fundamental to prevent risks, and improving the financial strength to enhance their ability to resist risks. And the improvement of corporate financial strength should primarily rely on production and management, investment, financing arrangements and other aspects of the comprehensive Strategy to achieve.

(B) financial management training high-quality
The financial management of high-quality financial risk must be professional judgment-sensitive, timely, accurate detection and estimation of potential risks, skilled use of modern knowledge in financial management of financial risk analysis methods in the use of these theories of financial risk analysis When can the specific environment, methods and meet certain conditions of reasonable assumptions and estimates.

(C) establish a scientific and useful financial projections and risk control mechanisms
Enterprise Financial projections are estimates of future financing needs. Accurate financial forecasts for the prevention of financial risks plays an important role. Enterprises through financial forecasting to understand their own financial needs, you can arrange financing plan in advance and in accordance with the financing plan, arrange production and operation and investment, which can be linked to investment and financing, to avoid causing the disconnect between the cash-flow problems. Meanwhile, the establishment of a risk control mechanism so that enterprises have the risk of automatic warning mechanism for the state of development of events, the development of effective monitoring, and timely feedback, and when possible, or have occurred is inconsistent with the expected changes and amendments to reflect, to minimize the risk.

Links to Research Papers Download http://www.hi138.com V. Establishment of Financial Management Center

Financial management should be subordinated to and serve the needs of enterprise production and management, all to help improve and enhance work efficiency and economic benefits for the purpose. To establish and improve accounting information and statistics, the combination of computerized information management, enterprise production and financial situation of the time, reflected objectively, and in-depth analysis, looking for weaknesses in the operation and management of proposed improvements to plug the loopholes, improving efficiency, better cost management, lower costs for higher returns. In short, to make business financial management throughout the entire process, covering the full range of business to meet the new requirements of modern enterprise development, to adapt to the era of knowledge economy demands changes in corporate financial management.


Sixth, the financial reporting model innovation

Traditional financial statements is based on the balance sheet, income statement and cash flow-based reporting model. Finance staff through the three statements, the assets of state enterprises, have been income, working capital and other financial information to confirm statements and disclosure, only regular production and business activities of enterprises to reflect and supervision. With the knowledge economy era, the face of the accounting information needs of the parties has undergone a qualitative change in the information users need to understand the financial information company in the past also need to understand the business and non-financial aspects of the future of information, especially for knowledge and technology to the enterprises to create more concerned about future earnings. To meet the knowledge economy, the information needs of users of new information, the traditional financial reporting model should be adjusted accordingly.

(A) the addition of other important items of intangible assets report
Disclosure of intangible assets is the focus of the next financial report, which includes the number and cost of various types of intangible assets, technological content, the expected return and the use of fixed number of years. In addition, the need to increase the non-financial information, including business performance and its forward-looking and background information. The information provided by these projects are all business information users to determine how much future income and the size of an important basis for the risk.

(B) the addition of Human Resource Information Form
Through the development of human resources information table, the disclosure of corporate human resources structure, ages, education, technological innovation, investment in human resources, human resources, benefits, costs, expenses and other information.

(C) corporate social responsibility disclosure of information
Into the sustainable development of enterprises to track, must bear the corresponding social responsibilities. In the consumption of resources to create wealth, protect the environment, the recent interest and combine long-term interests. By disclosure of business-related resource consumption, land use and environmental pollution of information, understand the behavior of the enterprise should bear much of its social responsibility, so that information users a more accurate understanding of business.


Implementing the Strategy of financial re-

Management expert Michael Hammer advocated recycling ideas, popular in Europe and the United States business, is becoming one of the latest management trends. Hamer to re-engineering is defined as: "The fundamental business process re-think and re-design, so that the cost, quality, service and speed of response characteristics such as key indicators of the times to obtain a huge improvement. "innovation in business management today," Financial Reconstruction Strategy "should be the corporate efforts to reduce costs and improve the economic efficiency of the key financial management Strategy. corporate financial reengineering Strategy requires starting from scratch, using the collective wisdom of the enterprise financial system can achieve the ideal features to list, and then after a comprehensive evaluation, from which selected the most critical, basic system functions, and its Optimization run into a new enterprise financial system. In this way, can be more explicit powers and responsibilities of all sectors of the financial sector profits, but also reduce labor costs, improve efficiency, so that each employee in a state of self-management, customer-oriented concept in the entire financial process to be reflected, to play groups advantage. Financial Reconstruction strategies include: financial process reengineering, financial officers and recycling, financing mechanisms, recycling, re-investment mechanism, profit distribution and recycling and so on. The implementation of this strategy, so that optimal allocation of financial resources to re-enterprise, and better financial management system to enable enterprises to adapt their internal and external environment in which to improve the company's financial functions, and enhance their ability to resist risks and improve the profitability of the business and innovation capabilities to enable enterprises to sustain development.


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