Enterprise Management Should Be Centered On Financial Management.

In the social category, enterprises are economic organizations that pursue economic benefits.

In economic organizations, financial management is an important part of enterprise management.

No matter what economic component enterprises are set up, no matter what industries they are engaged in, besides paying great attention to the market and paying attention to the CI image of the products, they should attach great importance to the financial management of enterprises and put the financial management in the position of the enterprise management center, and recognize them again.

How to strengthen financial management and improve management level has become an important topic for promoting the development of group companies.

This paper discusses the financial management of group companies under the condition of market economy.

The author believes that strengthening the financial management of group companies should focus on the following aspects: first, change the concept of financial management; from the planned economy to the market economy, it is a catastrophe for every enterprise, including many changes in the concept.

To meet the requirements of market economy, enterprise leaders and financial managers need to have a change in concept.

It includes: risk concept.

Under the condition of market economy, market information is changing rapidly, so that the interests of any market entity are uncertain, and there may be economic losses.

At the same time, enterprises in the market economy should be self financing. Therefore, we must increase sales and reduce costs, so as to defeat competitors in the market competition.

To enable enterprises to be eliminated in market competition, leaders and financial personnel of group companies must set up a risk concept and invest rationally, and at the same time, strengthen the assessment of their revenues, costs and profits.

Knowledge and talent values.

Twenty-first Century is the era of knowledge economy. Patent, trademark, proprietary technology and goodwill, information and other knowledge resources and human resources will become an important resource for economic development. It is the key factor that determines whether enterprises can win in competition in the era of knowledge economy. This requires enterprises to establish the concept of knowledge benefit and talent value.

The concept of cash flow.

Cash flow is an important criterion for measuring the quality of enterprise operation. In many cases, cash flow index is more important than profit index.

Even if a company has good business performance, its financial condition will deteriorate due to insufficient cash flow, which will bankrupt the enterprise.

Group companies should pay special attention to the control of cash flow and strengthen the management of cash receipts and payments of subsidiaries.

The concept of profit maximization.

The ultimate goal of enterprise production and operation is to maximize profits. Therefore, financial management must establish the concept of profit maximization.

In order to achieve profit targets, group companies must strengthen control over the incomes, costs, expenses, funds and other indicators of each subsidiary, strengthen the assessment of the profits of each subsidiary company, ensure the realization of profit goals of subsidiaries and maximize profits of group companies.

Financial management is the core concept.

Under the condition of market economy, the business environment of enterprises is complex and changeable, and the risk is bigger and bigger. In order to ensure maximum profits, we must establish the core position of financial management in enterprise management, give play to the role of financial forecast, decision, plan, control and examination, which is also determined by the nature and characteristics of financial management.

Group company takes financial management as the core, controls capital, cost and profit, and equals all aspects of group company's production and operation.

Two, establish a standardized enterprise group management system and straighten out the internal relations of property rights within the enterprise group. At present, there are many problems in the development of enterprise groups in China, such as unclear property rights, unclear subjects, tight links, loose management and low efficiency.

The author thinks that in order to solve these problems, we should first straighten out the relationship between the internal and external aspects of the enterprise, including the relationship between the assets of the state, enterprises and individuals, the relationship between the parent and subsidiary companies, the relationship between the enterprise group and the government.

1, the establishment of a standardized enterprise group management system, the formation of China's enterprise groups has been actively supported by the government from the very beginning.

Early government support includes the combination of administrative means and the allocation of state assets by administrative means to form group assets.

Although it is unscientific and unreasonable to analyze the operation of enterprises from the perspective of modern enterprise system from the perspective of modern enterprise system, objectively speaking, if the development of enterprises in western countries is completely formed by market mechanism, the development of enterprise groups in China is impossible.

But from another point of view, at present, China's enterprise groups are often complex, and there are groups on top of the group.

The group of the management group is actually an administrative group company without specific business management functions.

For this kind of repetitive control, the author thinks that it is neither necessary nor possible to achieve the purpose of control.

In this regard, the author suggests reforming the functions and functions of the government in the enterprise group: first, separate the management team of the enterprise group and the management team of the controlling shareholder.

Second, formulate economic policies to encourage the development of enterprise groups.

Third, establish an effective system for the management, supervision and operation of state-owned assets.

Fourth, establish a sound market system.

2, thoroughly straighten out the internal relations of property rights within the enterprise group. First of all, the relationship between the members of the group should be clearly defined in the relationship of property rights.

The parent company obtains control of the subsidiary through the form of investment, merger and acquisition, thereby obtaining the right to send a board member to the subsidiary company and appoint senior management personnel.

As a main economic entity in the legal status, the subsidiary company has its own capital and has independent financial management rights and financial management objectives.

Subsidiaries carry out business activities according to the resolutions of the board of directors and bear the relevant consequences.

The impact of the parent company on its subsidiaries is achieved through its directors and senior managers sent to the board of directors of the subsidiary.

The parent company does not intervene directly in the specific business activities of its subsidiaries.

As a large shareholder of a wholly owned company or holding company of a subsidiary, the parent company has a significant say in the asset structure, capital investment, income distribution and major personnel changes of subsidiaries, including holding companies, etc.

It can make recommendations on the basis of its own judgement on the performance of its subsidiaries and the needs of its own business development. The board of directors of the subsidiary company shall adopt the resolution of the board of directors and make specific implementation by the subsidiary company.

In the division of labor of the whole group, the parent company mainly focuses on managing its own main business and equity investment management, and at the same time, it is committed to doing a good job in capital operation and investment planning of the whole group, and the subsidiary company is doing well its own production and operation activities under the leadership of its board of directors.

On the decision-making level, the parent company is mainly responsible for the decisions of the macro strategy besides the production and management decisions, and the decisions made by the board of directors of the subsidiary companies tend to be more practical.

Three, the implementation of comprehensive budget management, to ensure that the group's production and operation in an orderly manner to achieve maximum profits, we must implement a comprehensive budget management of the entire group.

Budget management should be carried out under the leadership of the chief accountant of a group company. On the basis of scientific prediction of the market, based on the objective profit, a comprehensive sales budget, procurement budget, cost budget, cost budget, cash receipts and budgets, and profit and loss statement budgets can be worked out, so that the production and operation of enterprises can be carried out scientifically and reasonably along the budget management track.

After the annual budget of the company, the budgetary indicators should be dispersed and the budgets of each subsidiary company should be worked out to form a complete budget system of the whole group.

In addition, after the annual budget of the group and its subsidiaries is compiled, the monthly budget is decomposed into monthly budget according to the actual situation, and monthly economic activity analysis is carried out to find out the weak links of problems and production operations, so as to facilitate corresponding countermeasures.

After the end of each month, according to the completion of the budget targets in this month, we will make a rolling budget for the production and operation next month and the end of the year, and grasp the artery of the annual profit target of the group.

After the end of the year, the group should conduct a comprehensive analysis of the implementation of the group budget in the whole year, find out the factors that affect the budget completion, find out the deficiencies and improve the management level of the group.

Four, strengthen the capital management of group companies, the capital is the blood of enterprises in production and operation. Capital management is the core content of group company's financial management.

We should raise funds rationally to ensure the minimum capital cost and capital cost.

The funds needed for the production and operation of the group are arranged uniformly by the Finance Department of the group company except for a small part of the operating capital raised by various subsidiaries.

Group companies prepare funding plans based on group budgets.

When raising funds, the group should give full consideration to the surplus and deficiency between the subsidiary companies and make full use of the idle funds in the group. In addition, we should also consider the trend of the change in the interest rate of banks, and rationally arrange the structure between short-term loans and long-term loans, so as to ensure the minimum cost of capital and capital.

We should use funds rationally and strengthen the control of the use of funds.

The best way of fund management in group companies is to implement centralized management. This will not only avoid the phenomenon of scattered funds, but also make use of idle funds for research and development, foreign investment and other work, so as to seek short-term financial benefits.

Group companies control the use of funds. On the one hand, the financial departments of the group can concentrate on the settlement of goods between the production and circulation enterprises within the group and the capital allocation between the enterprises in the group; on the other hand, through cash receipts and payments daily tables, the daily monitoring of the cash flow of each subsidiary company is strengthened, so as to save the funds for use.

We should strengthen the management of accounts receivable and check the withdrawal of loans from subsidiaries.

To strengthen the management of accounts receivable and the withdrawal of cash withdrawal from subordinates, we can reduce the occupation of funds and improve the efficiency of fund cooperation.

Five, it is the fundamental purpose of the combination of enterprises to reasonably allocate the interests of the group company and gain the greatest economic benefits. It is also the internal driving force and objective basis for the establishment of enterprise groups.

And it is also another important work of group company's financial management to carry out reasonable profit distribution so as to realize the interests of every enterprise and ensure the maximization of the interests of the group company.

The most complicated aspect of the profit distribution of the company is the division of the after tax profits between the core group and the close layer enterprise.

The principles should be: mobilizing the enthusiasm of each subsidiary in production and operation, and ensuring the lowest tax burden and maximum benefit of the group company.

An important issue for group companies to balance profits and allocate profits among subsidiaries is to establish internal settlement prices, including pfer prices of products, intangible assets and research and development projects within the group.

The price of an internal settlement is based on market price, negotiated price and cost plus price.

When formulating the internal settlement price, the group company should focus on the implementation of the group's business strategy and the implementation of its economic responsibility, and also focus on the actual interests of the enterprises in the group and the overall interests of the group company.

It is an important prerequisite for Chinese enterprises to enter the international market to support the technological innovation of enterprise groups, and to increase investment in technological innovation of enterprise groups. Six

Enterprise groups can make full use of the advantages of large number of enterprises within the group and give full play to the technical superiority of each member enterprise.

In terms of organization, the parent company can make use of the opportunity of institutional reform of the ongoing scientific research institutions in the country, and use horizontal integration, commission development and mutual annexation to cooperate with some scientific research institutions related to their own industries, and make use of their scientific research advantages to serve their own product innovation.

In doing so, it not only improves the efficiency of pforming research results into productive forces, but also reduces the investment and risk of developing by relying solely on its own strength. In terms of capital, the parent company of enterprise groups can use capital control measures to extract a certain proportion of funds from annual sales revenue and establish "research and development fund", creating scientific research conditions and encouraging scientific research personnel to develop new products.

In addition, the government can provide financial support to enterprises developing high-tech products by setting up a Vc firm.

At present, Kelon Group and Midea Group have set up their own research centers, and Kelon Group has set up an independent Kelon research and development company in Japan, directly using foreign advanced technology to develop new products for the group.

The government should also encourage enterprises to vigorously carry out technological innovation from the aspects of finance, finance and tax policies.

For example, in terms of tax revenue, we should reduce and exempt income tax and business tax for some enterprises engaged in the production and development of high-tech products. In terms of finance, the state banks should give preferential treatment to the interest rate offered by enterprises in financing for technological pformation and innovation, and so on, so that the technological innovation and pformation of enterprises will have vitality and vitality.