On the financial management of small and medium problems and related countermeasures

Abstract: In the context of world Economic integration, China's enterprises are facing unprecedented opportunities and challenges, enterprises are to survive and grow, it must adapt to a variety of environmental changes at home and abroad. To the status of the Financial Management of SMEs in China Perspective analysis to explore the existence of which some typical questions, and propose improvement measures to improve Financial Management, and promote sound corporate governance to make it in the fierce competitive environment that steady progress.

Keywords: Financial Management, internal control, accounting information

The 21st century, along with global Economic integration, China has broad prospects for Development of enterprises, but also facing fierce competition in the market. Enterprises in order to secure Development, must adapt to the changes in market conditions, and enhance management capacity and achieve value maximization. solely from the perspective of Financial Management, financial forecasting, decision-making, fund raising, use and distribution, Economic activities and a series of evaluation and assessment activities, we also need to adapt to the current complex Economic situation. Financial Management directly affect their competitiveness and Development potential.

First, the status of the financial management of SMEs in China
Since reform and opening to promote the Development of China's enterprises tremendous progress in the national economy, social economy has achieved unprecedented success, which also made important contributions to small and medium enterprises. However, a considerable part of the small and medium enterprises only having immediate, pure pursuit of market share rate, ignoring the important role of financial management, made possible increased risk, resulting in stagnant or struggling business Development, to the overall development of China's economy has brought many negative effects. For example, there are some companies the financial management system is imperfect, management concept behind the low quality of accountants, financial management is in chaos, and so the low quality of accounting information, which directly affect the health of business operations.

Second, the financial management of SMEs in China Problems
Problems in financial management is an important factor restricting the development of enterprises, it is necessary to analyze and discuss, to find out the crux, to take further measures.

(A management concept obsolete, rigid management model behind
Scientific management determines the survival and development. However, a considerable part of the small and medium enterprises for financial management in business management is not a correct understanding of the core of enterprise management ideologically rigid, backward management, making the important role of financial management can not being played. First of all, the management of some companies did not do ownership and management separation of the two, this highly integrated centralized model suited to the requirements of the modern social market economy. Second, management is still prominent business family, leaders act by emotion , resulting in nominal financial supervision, financial management confusion. Thus, the management behind the concept and model making companies into the financial management can not be effective enterprise management mechanism, so that the loss of financial management in business management should have the status and role .

(B risk consciousness, poor Investment decisions
Investment decisions right or wrong, is directly related to the survival and development prospects. Enterprises when making Investment decisions, the Investment scale, Investment structure, Investment risk must be fully considered and a feasibility analysis. High-quality Investment decisions , to expand production scale and improve operating efficiency. The decision-making once the errors increase enterprise risk, will face financial difficulties. Therefore, the Investment decision-making requires the financial staff and management personnel to work together to analyze Investment projects, evaluation, trade-offs risk and reward, only when the risks and rewards commensurate with the expected when the Investment is desirable. In some of our SMEs, due to family constraints inherent in the management of the investment decision-making power is often concentrated in a few management hands, the lack of rational analysis and evaluation, can not do enough to risk awareness and identification, resulting in blind investment.

(C weak financial control, financial management confusion
In business, money is like the blood of its existence, strict financial control and scientific and rational and orderly operation of financial management to enable businesses, vibrant, and fund management confusion, inadequate financial controls in place, then the resulting companies can not running smoothly. Specifically, in the following aspects.

1. Cash management is not scientific
Daily business activities of enterprises in order to ensure normal business, you need to retain adequate cash balance, that is trading needs, and sometimes occur in the business enterprise did not expect to advance additional cash payment, the preventive needs, companies sometimes also need to set part of the cash deposit, in the face of the right opportunity to purchase, you can buy at any time, that speculative needs, for example, when faced with a cheap supply of raw materials or other assets, opportunities, cash in hand can purchase a large number of . That is, enterprises in order to meet their trading needs, preventive needs and speculative needs, tend to retain a certain amount of cash required to prepare. business-to-cash management objectives designed to maintain its liquidity on the basis of the maximum gain, which is an important part of financial management. However, in practice, many companies often ignore cash management, resulting in idle or insufficient funds, lost a lot of opportunities to make the wrong business, capital can not play its best effect, invisible in increased business costs.

2. There are many loopholes in inventory management
Inventory and evaluation of liquidity is a measure of corporate purchase materials, production, marketing products, to recover the funds and other aspects of management of a synthetic index. Of inventory management is to inventory trade-off between costs and benefits, so that to achieve the best combination of both. that is, required to ensure continuity of production and operation, while operating funds occupy as little as possible in order to improve efficiency in the use of funds. In many enterprises, often overlooked on inventory management, or There are many loopholes. For example, the warehouse inventory backlog or less, are not treated soon rot, loss of theft not pursued the relevant people, not timely lessons learned, can not remedy the situation, and so on.

3. Accounts receivable management is not in place
Enterprise in modern society is one of the means to expand sales to credit sales, accounts receivable credit is the main reason for an enterprise. As accounts receivable operations in the enterprise plays an important role, therefore, better management of accounts receivable has a direct bearing on whether the company running smoothly. In reality, many companies sell good condition, but it shows there is not enough cash flow, which is the main reason for the management of accounts receivable does not place unreasonable. financial control is not strict credit standards set too wide, urging account is not enough, not in time will result in accounts receivable turnover is too slow or even unable to recover funds consequences caused great losses to the enterprise.

4. Internal control quality, and poor quality of accounting information
Accounting information is a business process, operating performance, operating results, statements, external stakeholders and internal management of the evaluation of financial situation, to prevent operational risks, and further an important basis for improving business management. The enterprise's internal control system designed to protect the safety and integrity of assets, reduce risk, improve management efficiency. When companies develop a sound internal control system and strict enforcement to be able to effectively monitor and ensure the quality of accounting information to reduce and prevent the occurrence of distortion of information. However, in reality, some enterprises because they do not focus on internal controls, or inadequate internal control system, making the low quality of accounting information. information distortion caused by Economic development on the one hand the disorder and confusion, on the other misleading to stakeholders, resulting in substantial economic loss. Links to Research Papers Download http://www.hi138.com Third, improve the financial management of the relevant measures for SMEs
In view of the financial management in practice, the existence of such kind of issues that hinder the company's own development, but also restricts the progress of our economy, therefore, should take the following related measures to improve the financial management.

(A modern enterprise system, and strengthen corporate governance structure
Development of national economy depend on the development of enterprises, the development of enterprises need to have a good system structure, establish modern enterprise system is the direction of enterprise reform in China. The basic features of modern enterprise system are: property rights clearly established, separation of enterprise Management Science. corporate governance structure is a modern enterprise system, the most important organization. according to <<Law>> provides general meeting of shareholders, board of directors, supervisors, managers perform their duties, mutual interdependence and mutual restraint, in order to protect enterprises order operations. Therefore, to establish a scientific system of corporate leadership and organizational management system, regulating the owner, operators and employees the relationship between the formation of a combination of incentives and constraints operating mechanism so that enterprises in the advanced and scientific management mode Run, for good financial management to build a sound organizational foundation.

(B strengthen the financial control, financial management norms
Enterprises should be based on their own characteristics to establish sound financial management system, standardize the financial work to strengthen financial control and rational allocation of funds, working capital and fixed capital to achieve a reasonable match to improve efficiency in the use of funds, so that the use of funds to produce the best results.

1. In the use of funds, the cash to maintain a certain capacity to ensure cash flow to meet its daily operating requirements.

2. To strengthen the scientific management of inventory. A reasonable time to develop and purchase bulk purchase, so that sufficient supplies to meet existing needs, but also to avoid the slow-moving inventory backlog, deterioration and other problems, and strive to achieve inventory costs, storage costs and lack of the lowest cost goods, and strive to minimize the maximum output of the input.

3. Strengthen the management of accounts receivable. Receivables financing as a business running, is to expand sales and profits for the investment, and therefore the credit should develop appropriate policies to ensure the effective use of funds. Meanwhile, we must develop appropriate collection policies, when the accounts receivable has taken place, to conduct real-time monitoring of the recovery, and actively adopted various measures to strive for timely recovery of payments for bad debts in a timely manner accounting.

4. To strengthen internal controls, improve the quality of accounting information. Establish a sound internal control, strengthen management, oversight and constraints, accounting information is an effective solution to an important means. First of all, improve their internal accounting system, and improve all the properties of the approval, Annunciation system, establish a strict property inventory system. strengthen internal accounting controls, to establish a scientific system of internal check and approval staff, handling personnel, financial duties and powers of custody officers clear division of labor, money, goods, account charge. Second, to establish a scientific internal audit system. in the modern enterprise management, internal audit committee to effectively monitor the commercial property supplies the security, integrity and use, to ensure the implementation of control objectives and corporate decision-making, to ensure real and effective accounting information.

5. To improve the quality of leaders and accountants, and strengthen financial management concepts. Corporate accountants professional quality and ethics, which restricts the work is good or bad financial management, therefore, should enhance learning and professional accountants in business ethics education and strengthen its financial management concepts. At the same time, leaders must continuously improve their own level, to improve their planning, analysis and decision making.

In summary, as some self-restraint mechanisms of SMEs has not been fully established, basic accounting work is weak, the internal control system is not perfect, not tight, making the financial management of SMEs in China there are many problems. In view of this, enterprises should be based their operating characteristics, find the problem, and establishing their own development of the financial management of science in today's fierce competition in the market steadily.

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