On the financial management of SMEs on the problems and countermeasures

Abstract: SMEs are an important part of the national economy, strengthening the financial management of SMEs not only their own development needs of SMEs, it is WTO face of fierce market competition to improve their core competitiveness, the need of great theoretical and practical significance. This article discusses the relevant basic financial management for SMEs operating conditions, and its financial management deficiencies in the proposed recommendations accordingly.

Keywords: financial management, financing SMEs
1 Introduction
In December 2008, the National development and Reform Commission released <<SME development projects>> work report that China currently has more than 4240 SMEs million, accounting for 99.6% of enterprises, small and medium business sales of all sales 58.9% of the total, the value of final goods and services accounted for 58% of national GDP, accounting for 48% of revenue, patents accounting for 66% of patents, new products accounted for 82% of all new products to address the net increase in employment in total urban employment 75% of the population, but because small-scale production, low capital and technology constitute the external macroeconomic and other traditional institutions and the impact on SMEs, making the financial management of SMEs in China is not optimistic, therefore, to strengthen SMEs Financial management is imminent.

2 problems in financial management for SMEs
2.1 The lack of clear direction of industrial development, the lack of scientific proof of the project investment.

First, one-sided pursuit of "hot" industry, regardless of objective conditions and their ability to ignore the state's macro regulation and control of enterprise development, that what the industry can do and what industry can do the second, the scale of investment of the project, capital structure, the construction period and sources of funding and lack of scientific planning to deploy.

2.2 weaknesses in financial control.

First, poor management of cash, the formation of idle funds or lack of the second, did not establish a strict credit policy, the lack of effective collection measures, accounts receivable can not be cashed, or the formation of bad loans, accounts receivable turnover is slow, the recovery of funds difficult. Third, the inventory control is weak, resulting in sluggish capital.

2.3 Financial accounting process is not standardized, not strict.

First, the original documents, accounting entries, account applications, account books and financial revenue and expenditure to set non-standard work, etc., did not form a strict system.

Second, the preparation of financial statements can not fully reflect the actual production and operation situation, and not fully in accordance with the requirements of relevant national laws and regulations do lead to distortion of accounting information. Third, the companies do not or can not establish an internal audit department, even if There, it is difficult to ensure that lack the necessary independence of internal audit of the financial monitoring mechanism.

3 solutions to SME specific ways of financial management issues
3.1 on industrial development and science investment advice
Since China has not issued a full accounting policies and regulations for SMEs, but with the increasingly evident role of SMEs, the SME should do the following:
(1 small and medium enterprises should be properly diversify investment risks, optimize the capital structure and improve its financing capacity. SMEs must be reasonable arrangements for the capital structure, increasing the premise of internal capital accumulation, moderate debt, to meet the needs of business investment. Share on free download http://www.hi138.com (2 to develop a scientific and rational financial strategic decision to reduce investment risk, reduce arbitrary decision-making and blindness, and improving financial management. On the one hand, in order to avoid investment risk, SMEs should sound financial management, timely to expand the size of the SME growth process full of risks, small and medium enterprises to develop, the key to sound financial management, science and investment on the other hand, SMEs should invest primarily in domestic investment. One investment in new product trial. Second is the investment in technology and equipment renovation should pay attention, should be used as a long-term business strategy. Third, investment in human resources, especially managerial talent and technical personnel have, is winning business magic.

(3 establishment of SME credit guarantee system for the SME credit guarantee is the service for the purpose of intermediary organizations, can not guarantee fees charged to increase the cost of financing costs of SMEs, the establishment of credit guarantee system in the process of credit should security systems and other forms combine to guarantee the financing of enterprises to provide a variety of services to provide more financing opportunities, to a certain extent, solve the difficult problem of corporate finance.

(4 private financial sector to become the economic development engine. In order to better play the role of the financial sector, financial institutions, to truly change, breaking the barriers of traditional ideas and systems, speed up the credit management system reform, to adapt to the development of private economy needs.

3.2 strict financial control
(A majority of SMEs from the following aspects: corporate functional departments should be fully aware of the importance of funding, efforts to improve the efficiency of capital use. First, the efficiency with which the source of funds and use. Second, to accurately predict recovery of funds and payment time.

(2 establish a sound internal control system. Small and medium enterprises should increase the property management and property records, transparency, financial management, records, inspections, audits should be accountable.

(3 companies should be based on <<accounting>>, the accounting system and other regulatory requirements, employing accounting personnel with qualifications, to avoid internal corporate managers who hire, to ensure that the normal accounting In addition, professional financial staff should training, strengthening the spirit of education finance officers, financial officers to enhance the legal awareness
3.3 strengthen the accounting team, and to enhance the quality of full management
Accounting for the team to solve the problem, we must strengthen the accounting team building, professional training of accountants and political and ideological education, strengthen the supervision of accountants awareness to enhance the overall quality of education, starting with business leaders to start, increasing the full legal awareness, strengthen the legal system. Only rely on the concerted efforts of business full, possible to improve the status of enterprise management, improve financial management, improve enterprise competitiveness.

4 Conclusion
Overall long-term development of SMEs in order to get help from the government to rely only on their own but also support efforts to strengthen its own reform.

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