How to regulate and optimize the behavior of modern financial management of SMEs

Abstract: SME financial management practices are the main financial behavior of SMEs (financial officers and financial organizations) in the SME and external environmental factors and stimulation for the realization of the objectives of financial management of small and medium enterprises make realistic, dynamic response activities . It is the small and medium enterprises of all economic activity within the external manifestation, determines the basic direction of financial operations of SMEs, but also subject to the overall development objectives of small and medium enterprises.

Keywords: financial management; enterprise; specification

one of the modern SME financial management practices of evaluation and thinking

SMEs are an important and active in the national economy, the strength of , both in developed and developing countries, SMEs are the economic development in their respective play an extremely important role in the national economic structure and social stability, an extremely important position. From our current situation, the end of 2002, the number of the country has more than 11 million SMEs, accounting for 99.5% of the total number of enterprises; it provides the industrial output value and profits and taxes accounted for 60% of the national total and 40 %, and provides about 80% of urban employment opportunities, and below the county to become a major source of revenue. Shows that SMEs are already an integral part of our national economy, on China's economic development and social stability plays an important role in promoting. After seeing these small and medium enterprises made significant achievements, we should also see that due to changes in the external macro-environment characteristics and internal management factors and other constraints, the financial management of SMEs in their own development, there are still Deng Jun and the market economy conditions are incompatible, so that SMEs in financing, investment, financial operations management and financial management practices such as profit distribution, there are still many non-market, non-rational problems that have seriously affected the financial situation of SMEs, and even affect the survival and development of SMEs. The problem is manifested as the Lord:
1, financial management model rigid. 2, accounting management is lagging behind. 3, cost management concepts obsolete.

4, financing and coordination capacity is low. 5, investment management act rough. 6, lack of financial operating mechanism. 7, allocation of management behavior distorted.

8, financial and accounting information distortion.


Second, the modern code of conduct for financial management of SMEs in specific initiatives

(a) strengthening the government functions. ⑴ improve laws and regulations. On the one hand the government should strengthen relevant laws and regulations for the construction of small and medium enterprises, as soon as possible will help SMEs to develop and improve the development of preferential policies; on the other hand should also learn from international experience, specifically for the development as soon as possible a unified accounting practices of SMEs in China laws and regulations, a clear accounting entity through legislation and legal responsibilities, increase discipline, punishment for violations. ⑵ the establishment of SME fund. Through the establishment of the Fund, focused on supporting the development of SMEs, these funds include guarantee funds, venture capital funds, mutual funds. ⑶ establishment and improvement of SME credit guarantee system. Guide SMEs to enhance the sense of credit, improve credit, good credit to create their own environment. ⑷ strengthen the SME external oversight. The one hand, SMEs should urge implementation of the "Basic Accounting Standards" requirements, establish a sound accounting system and accounting system, promotion of SMEs and standardize accounting basis; the other hand, the supervisors should strengthen the position of the government, while strengthening social intermediary agencies and accounting firm's supervision function.

(B) to strengthen scientific financial behavior. ⑴ strengthen the working capital management, improve working capital efficiency. On the one hand to establish and improve working capital management responsibility of any centralized system, the implementation of clear objectives and accountability, responsibility to the people, the responsibility of tracking and managing evaluation and reward system, and mobilize the enthusiasm of the staff, reduce operating funds used to accelerate cash flow and improve working capital use efficiency; the other hand, the use of advanced scientific management methods, specifically, should be used for cash management method of optimal cash holdings and cash budget law; on the management of accounts receivable should be scientific and reasonable percentage of sales , aging analysis and effective collection methods; should be used for inventory management, scientific management and the ABC classification scale. ⑵ science investment decisions, and actively prevent investment risks. To establish a scientific project investment decision-making procedures and expand the participation of investment decision-making mechanism, to carry out a detailed investment project site visits and careful Research, scientific and rational choice should be based on the investment, the establishment of the project investment feasibility studies and demonstration system to improve the level of investment, guard against investment risk. ⑶ reasonable choice funding, and effectively circumvent the financing risk. The choice of financing for SMEs in the financing plan based on their own, based on the actual situation of the distinction between project-specific purposes, which are used different ways of financing. Meanwhile, in the financing process, should also pay attention to maintaining a sound capital structure and maintain an appropriate balance scale to prevent the occurrence of risk financing. ⑷ implementation of a comprehensive cost management, to achieve cost leadership strategy. SMEs should be established from the purchase, production, inventory, sales, transportation, accounting, quality management to a comprehensive set of cost management system should be strengthened on the basis of target cost management, standardize business processes, cost accounting, the implementation of cost estimates control, development of cost plans, and strive to promote the cost management of technological innovation to achieve a leading cost management strategy. ⑸ strengthen the profit distribution management, dealing with the relationship between accumulation and consumption. SMEs in the profit distribution process, long-term strategy to strengthen the awareness and the modernization of financial management concepts, to coordinate the financing, the relationship between investment and profit distribution, must focus on long-term development, the establishment of equity compensation mechanism, handle the accumulation and the relationship between consumption and ensure healthy and orderly development of enterprises into the track. Links to Research Papers Download http://www.hi138.com