What Is The Seven Rule Of Corporate Financial Control?

　　 financial control As modern Business management An important symbol of the level is the use of specific methods, measures and procedures, through standardized means of control, the financial activities of enterprises. Control and supervision Now, let's talk about the functions, limitations and control forms of financial control.

　 Financial control function

Financial control must ensure the efficiency and effectiveness of unit operation, the safety of assets, the economic information and the reliability of financial reports. The role of financial control is mainly in the following three aspects. First, it helps to achieve the company's business principles and objectives. It is both a real-time monitoring means and an evaluation standard in the work. The two is to protect the safety and integrity of various assets and prevent the loss of assets; and the three is to ensure the authenticity and integrity of information and financial accounting materials in business operations.

　 Limitations of financial control

Good financial control can achieve the above goal, but no matter how perfect the design and operation of control is, it can not eliminate its inherent limitations. Therefore, these limitations must be studied and prevented. The limitations are mainly in three aspects: first, the limitations of the principle of cost-effectiveness; two, the failure of financial control by financial control personnel due to misjudgement, neglect of control procedures or artificial fraud, and the three is the administrative intervention of managers, resulting in the establishment of a financial control system in name only.

Because financial management exists in all aspects of the economic activities of enterprises, it has a great impact on the production and operation of enterprises. Financial control has a complete system. It consists of three parts: financial control environment, accounting system and control procedures. Financial control environment refers to various factors that establish or implement financial control. The main factors are the attitude, knowledge and behavior of financial management. It includes: the organizational structure of the unit, the management ideology and management style of the manager, the functions of the managers, the restriction of these functions, the method of determining the responsibilities and responsibilities, the control measures adopted by the managers in monitoring and inspection, the personnel work policy and its implementation, and the various external relations affecting the unit business. Accounting system refers to the method and procedure established by the unit for accounting and accounting supervision. Effective accounting system should do: confirm and record all real economic transactions, timely and fully describe the economic business, make appropriate classification of financial business in financial accounting reports, measure the value of economic business, record its appropriate monetary value in financial accounting reports, determine the time of economic transactions, record economic transactions in the appropriate accounting period, and reflect economic business and disclose accounting information in financial accounting reports. The control procedure refers to the financial control method and procedure formulated by the manager. Specifically, it includes: the right to approve economic activities and economic activities; to clarify the division of responsibilities among personnel, to effectively prevent fraud; to set up and use vouchers and bills accurately, to reflect economic business through accounting books; to make good use of property and materials; and to review registered businesses and their valuation. {page_break}

　 Financial control mode

1. organizational planning control. According to the requirements of financial control, in the process of determining and improving the organizational structure, the unit should follow the principle of separation of incompatible duties: it means that a person can not serve as a different position in the same department's financial activities. The economic activities of a unit are usually divided into five steps: authorization, issuance, approval, execution and recording. If each of these steps is implemented by relatively independent personnel or departments, it will ensure the separation of incompatible duties and facilitate the play of financial control.

2. authorized approval control. Authorized approval control refers to the authority control of the internal departments or staff in handling economic business. When a department or a member of a unit is dealing with an economic business, it must go through the authorization approval, otherwise it will not have the right to examine and approve. Authorized approval control can guarantee the implementation of the established policy and limit the abuse of power. The basic requirements for authorization and approval are: first, we should clarify the limits and responsibilities of general authorization and specific authorization; secondly, we should clarify the authorization approval procedures for each type of economic business; thirdly, we must establish the necessary inspection system to ensure the quality of the economic business handled after authorization.

3. budgetary control. Budget control is an important aspect of financial control. It includes the whole process of financing, financing, procurement, production, sales, investment and management. Its basic requirements are: first, the budgetary budget must reflect the management objectives of the unit and clarify its responsibilities. Second, in executing the budget, the budget should be adjusted through authorization and approval so that the budget can be more realistic. Third, timely and regular feedback should be made on the implementation of the budget.

4. control of physical assets. The control of physical assets mainly includes two types: limited access control and regular inventory control. Limiting access control is the control of physical assets and documents relating to physical assets, such as cash, bank deposits, negotiable securities and inventories. In addition to cashiers and warehouses, other personnel restrict contacts so as to ensure the safety of assets. Regular check and control system means regular physical assets check to ensure that the physical assets are in line with the book records. If the accounts do not match, the reasons should be identified and handled in a timely manner.

5. cost control. Cost control is divided into extensive cost control and intensive cost control. Extensive cost control is the way to control the final sale from raw materials to products. Specifically, it includes three aspects: raw material procurement cost control, material use cost control and product sales cost control. Intensive cost control first is to improve production technology to reduce costs, the two is to reduce costs through improvement in product technology.

6. risk control. Risk control is to prevent and avoid all kinds of risks that are not conducive to the realization of business objectives. It is extremely important to manage risks and financial risks in these risks. Operational risk refers to the uncertainty caused by the reasons of production and operation, and financial risk, also known as financing risk, refers to the uncertainty caused by debt financing. As business risks and financial risks have a great impact on the development of enterprises, enterprises must make every effort to avoid these two risks when making various decisions. If the enterprise borrows the business, though it can alleviate the difficulty of the capital shortage of the enterprise, but because the borrowed capital needs to repay the principal and interest, once the enterprise fails to repay the debt, it will inevitably cause the enterprise to get into financial difficulty.

7. audit control. Audit control mainly refers to internal audit, which controls and re monitors accounting. Internal audit is an independent evaluation of various business activities and control systems within an organization to determine whether the procedures of the established policies are carried out, whether the standards established are conducive to the rational utilization of resources, and whether the objectives of the units are met. The contents of internal audit are very extensive, generally including internal financial audit and internal management audit. The supervision and examination of accounting information by internal audit is not only an effective means of financial control, but also an important measure to ensure the authenticity and integrity of accounting information.