On adaptation to the modern enterprise system to strengthen financial management

[Abstract] This paper aims to explore the market economy, to meet the needs of modern enterprise system, how to strengthen Financial Management.

[Keywords:] of the modern enterprise Financial Management

Financial Management is a central part of the business management and core Financial Management of the quality of the management level has a significant impact, therefore, to adapt to the modern enterprise system, strengthen Financial Management of the establishment of modern enterprise system, promote the reform of state-owned enterprises has important and far-reaching significance.

A modern enterprise system, the special nature of financial management.

In modern enterprises, because of its group, regional, branch offices and more so, determine the specificity of its financial management, summed up in the following aspects:
1 involves a wide range, first on the enterprise, the financial management activities related to production, supply, sales and other links, while the financial management department itself to production management, marketing management, quality management, materials management and other human activities provide timely, accurate, complete, information on a continuous basis. Secondly, the modern enterprise financial management also involves a variety of relationships outside the enterprise.

2. Comprehensive and strong. Financial management as a value-based management, which includes financing the management, investment management, equity distribution management, cost management, etc. This is a comprehensive and strong economic management. In other words, penetration of financial management in all business activities involving the production, supply, marketing and every aspect of human, financial, and material of the various elements, so grasp the internal management with financial management as a breakthrough, through value management to coordinate, promote and control the production and business activities .

3 high sensitivity. business management objectives to maximize economic benefits, this is a modern enterprise system requires increasing the value of invested capital determined to achieve, because companies want to survive, must be able to income over expenditure, debt maturity. Enterprise to develop, we must generate increased revenue. Income means that the human, financial, and material corresponding increase in capital flows will have the form of corporate finance to be fully reflected, and the completion of financial indicators have a major impact, so financial management is the basis for all management, management center.

Second, the modern enterprise system for financial management of the new requirements
Conform to the socialist market economic system of modern enterprise system, the financial management of the following requirements:
1. To establish clear financial management objectives
Typical features of a modern enterprise system is the separation of ownership and management, corporate investment by investors from the operator management, creditors, employees with business-related subjects of interest as the owner, the pursuit of profit and wealth maximization , as creditors are concerned about whether the corporate debt maturity debt service, there is no financial risk as employees, are most concerned about current income and long-term business trends, so in a market economy, corporate financial Management's goal is to maximize profits and financial condition optimization.

(2) establish a modern financial management
Adapt to the market economy must be changed on the financial awareness, first of all need business leaders and financial managers have a change in concept, including:
(1) risk perceptions, market economy, market information and changing, so that the interests of any one of the main market uncertainty, there is the possibility of economic losses. To enable enterprises in market competition is not eliminated, business leaders and financial must establish the concept of risk, a reasonable investment.

(2 knowledge and human values, effective the twenty-first century is the era of knowledge economy, patents, trademarks, know-how and goodwill, information and other knowledge resources and human resources will become an important resource for economic development, which requires companies must establish the value of knowledge, the concept of efficiency and talent.

(3 cash flow concept. Cash flow is an important measure of business quality standards, in many cases, cash flow indicator is more important than profit targets. Even if a company has a good operating performance, but because of insufficient cash flow caused by the deteriorating financial situation, still make the company bankrupt, so companies should pay attention to cash flow control.

(4 concept of profit maximization. Production and operation of the ultimate goal is to maximize profits, the financial management must establish the concept of profit maximization. Enterprises in order to achieve the profit goal, we must strengthen the company's revenues, costs, expenses, capital and other indicators of control strengthen the assessment of corporate profits, ensure that the company's profit goals and maximize profits.

(5) financial management as the central concept of the market economy conditions, complex business environment, increasing the risk of the need to establish financial management in business management in the core position to play a financial forecast, decision making, planning, control , assessment and other aspects of the role.

3 changes in corporate financial management functions
Adapt to the modern enterprise system, financial management, is not limited to management of the funds, it requires from the traditional management model to come out, use some of the modern financial management tools, effectively transforming the functions.

(1 forecasting functions
Forecast is the starting point is the end of the financial management of the modern enterprise system has been predicted throughout all aspects of business management, business forecast, trends, forecasts, sales forecasts, profit forecast, predict the cost of funds has become an important part of modern financial management and means of .

(2 control functions
Financial control is a part of modern business management, financial management objectives for achieving the basic means to control the profits as a leader, through cost and expense control, financial control to achieve the goal of profit maximization.

(3 financial decision-making
Financial decision-making is based on financial projections, feasibility studies for the program to select the optimal solution. Financial decisions throughout the entire process of corporate finance activities. Scientific and financial decision-making across the enterprise is directly related to the business direction and goals can be the core of it is financial management.

(4 analysis of the risk early warning functions
In a market economy conditions, any one market players - business interests are uncertain, there is an objective economic losses, in financial crisis or even the possibility of bankruptcy, which requires analysis of corporate financial management with early warning function.

Third, the modern enterprise system, how to strengthen financial management.

1. Actively absorb the advanced achievements of Western financial management.

Modern enterprise financial management initiative in the West, after nearly a century of development and improvement of the formation that can adapt to the requirements of market economy, with financial management as the core of modern enterprise management system, also formed a funding decision-making, investment decisions, financial projections, financial analysis as the main content of the financial management system and it is in a market economy under the condition of a scientific summary of the financial management practices, is the common wealth of human civilization. combined with the national conditions of China's socialist market economy, science, the selective absorption of the West the essence of financial management. to establishing a modern enterprise system with Chinese characteristics under the financial management system has its practical significance.

(2) improve the quality of leadership and leadership from the leadership to be guaranteed.

Leadership and the leadership determines the quality and level of corporate decision-making and management level. To really strengthen financial management, leadership must be given guarantees. Only leadership seriously, and will take the initiative to make the task onerous accounting personnel, the accounting into the proper position, so that accounting personnel in the enterprise to fully play its positive role in the management and decision-making.

3 people-oriented to improve overall quality, especially in financial management, personnel training, and to strengthen financial management software development.

To strengthen financial management is the key factor consistent with the actual sound of the advanced financial management system development requires high-quality financial management personnel. Financial management requires the participation of every employee, must be to have all employees meet their financial responsibilities the quality and capacity. to strengthen the education and training to enable them in the financial management activities by managers to become consciously passive participant and then on the one hand, and financial officers must establish a new financial management, enhance risk awareness and management awareness , out of the accounts, billing, reimbursement of the small circle, into the operation and management of process management. Links to free download http://www.hi138.com 4. Cash flow as the center, to strengthen financial management.

Corporate cash flow is a barometer of financial situation of enterprises which runs through the entire financial management of the entire process.

(A cash flow impact on business investment decisions. Net cash flow to evaluate the feasibility of investment projects, the main indicator of the size of net cash flow of investment decisions has become the most direct basis.

(2 cash flow impact of funding decisions. Affect cash flow financing is an important factor in corporate financing not only to consider the needs of enterprise development, but also to consider the effect of the use of funds, to fund-raising program decision-making, we must analyze cash flow, determines its own cash flow business financing.

(3 Cash flow stability determinant of business risk is the risk of future earnings volatility, the actual cash flow and projected cash flow deviation, the more stable cash flow, business risk is smaller.

(4 The level of cash flow management has affected the liquidity of assets and income level, which restricts the development of enterprises. In short, financial management, the use of cash flow analysis for decision-makers choose the best investment program, financing decisions to improve the level of corporate financial management.

5 to control the cost center, to strengthen cost management.

(A master key to cost control points, including reasonable to determine the lowest cost, most profitable products production and sales, reduce ineffective or inefficient labor, while carrying out value engineering activities, the product of design, technology advances, cost control and cost-effective to combine to achieve the pre-participation and advanced control.

(2 to expand the scope of cost assessment, and improve the cost evaluation system. The financial sector in the assessment of manufacturing costs, while also assessing the cost of product quality, cost and responsibility in the assessment of tangible costs, intangible costs should pay attention to product, establish and improve the cost assessment system.

(3 learning advanced cost accounting management experience, to carry out activities to optimize product mix, cost management as the center, to put money into effective products.

6 sound system of internal control and management, standardized management.

The final analysis, financial management, system management, not the people who manage To strengthen financial management must strengthen the system to system, to restrain, to regulate, to guarantee the establishment of indicators to assess the mechanism, the establishment of a comprehensive budget system, the establishment of target cost control system, the establishment of standards for non-productive expenditure, inventory and accounts receivable management system, the establishment of forecasting systems, decision-making system, regular financial analysis system and a series of systems, forming a complete set of financial and scientific management system.

7. A financial forecasting, decision-making operating mechanism, strengthen the financial program management.

In a market economy, financial management is the core of the financial decisions, financial projections for the financial decision-making services, financial planning is the financial decision-making concrete. Modern enterprise management theory, business management focus on financial management, financial management, the focus the financial decision-making. affect corporate financial decision-making management success or failure, life and death, so the establishment of financial projections based on financial decision-making mechanism, improve the forecast of financial management, decision-making is imperative to strengthen financial management.

8. The establishment of financial early warning systems, risk management.

Strengthen the management of the financial situation of enterprises, improve the control means, to establish the financial situation of the scenarios, the dynamic detection and early warning mechanisms to police the situation in the financial condition prior to making scientific judgments to ensure the implementation of the budget and financial management implementation of the plan, which passed the financial evaluation indicators to reflect the quality of good or bad economic performance in financial decision-making, to go through a careful analysis and comparison, to avoid the company into a financial crisis to build awareness of risk in the sense of competition, based on the China's current establishment of modern enterprise system, reform and opening up situation, China's enterprises under increasing pressure, under strong pressure in this, we should enhance risk awareness, strengthen financial management, to prevent the emergence of the financial crisis.

In summary, the establishment of financial management as the center of the modern enterprise system management mechanism is to adapt to the socialist market economy, is a modern enterprise system "scientific management" measures. To strengthen and improve corporate financial management is to achieve management innovation, work to promote the level of enterprise management, an important part on the stage, but also the implementation of the basic norms of modern enterprise system management an urgent need therefore to adapt to the modern enterprise system is bound to strengthen financial management.

References:
[1] Management Accounting (Zhongnan University of Zhuhai Fang Editor's note
[2] Financial Management (CPA Examination materials specified
[3] Modern Enterprise Financial Management (Editor's note poplar resources
[4] Enterprise Financial Management (Northeastern University Press Yang Weizu Financial Editor
[5] <<modern enterprise system, enterprise financial management features>> (tax code and accounting Zhang Jun

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