Inventory Of Financial Operation And Management Of Enterprises

Strengthening enterprise operation financial management can increase the demand for the development of enterprises in the era of knowledge economy, and can make financial budgets ahead of schedule. Here are five major mistakes in the financial budget.

　　 Misunderstanding 1: lack of budget management functions

From the perspective of financial budget management, the financial budget management methods involving various economic phenomena inside and outside enterprises have not been practically applied in many enterprises. There is a general lack of understanding of budgetary management, or a mere formality of budgetary management, or the function of planning, coordinating and controlling the budget itself. It does not pay attention to the role of budget management in other aspects, resulting in the failure to correctly handle the relationship between strategic budget management, enterprise performance evaluation, enterprise resource allocation, enterprise risk control and enterprise economic efficiency, and grasp the correct goal and direction of financial management.

From the point of view of financial cost management, many enterprises can not shift from the focus of the product to the focus of operation, so that the perspective of financial cost control has not been transferred from traditional primary cost reduction to cost planning, cost budgeting, optimal allocation of resources, reasonable cost, prior prevention, and post adjustment, and restructuring of production processes.

From the perspective of enterprise performance evaluation, it still remains in the use of profit based performance evaluation methods. Evaluation of enterprise performance still adopts indicators that can not reflect cost or capital cost, and can not reflect the final profit or value of enterprise's production and operation, such as equity reward rate, total assets return rate, earnings per share and so on. In the existing financial evaluation index system, there is a lack of evaluation index for technological innovation capability, especially the additional economic value that has been used for performance evaluation and evaluation by world-class companies, and few in-depth studies have been conducted, thus restricting the implementation of enterprise development strategy and affecting the sustainable development of enterprises.

　　 Misunderstanding 2: profit supremacy

From the textbook of financial management, this is not a question of whether one can choose one, but a historical process of development. Fundamentally speaking, the goal of socialist enterprises is to create more wealth through the production and operation activities of enterprises, and to meet the needs of all people's material and cultural life to the maximum. However, because of the different stages and levels of the development of productive forces, there are different forms of expression in the above basic objectives. We have experienced four processes: maximizing total output value, maximizing profits, maximizing shareholder wealth and maximizing enterprise value. Nowadays, private enterprises, foreign-funded enterprises and Sino foreign joint ventures all regard profits as the wealth of enterprises. The goal of corporate financial management is not to maximize the value of enterprises, but to maximize their profits. The more profits, the greater the wealth of enterprises. It is understandable to think carefully.

However, there are such misconceptions in large and medium-sized state-owned enterprises and listed companies. For example, some managers make a wrong decision for the sake of profit and pursue the long-term profit maximization. They neglect the social interests, the interests of workers, the interests of creditors, the interests of debtors, the interests of consumers and investors, and deviate from the general objectives of enterprises. The goal of enterprise financial management is the purpose of enterprise financial activities, a prerequisite for a virtuous circle of the enterprise system, and a criterion for evaluating the reasonableness of the financial activities of an enterprise. The maximization of enterprise value must be our unswerving pursuit and goal.

Misunderstanding 3: Finance Disconnect from enterprise strategy

In the process of deepening our economic restructuring, the original large and medium-sized state-owned enterprises have now become a group company. Their financial relationship is also various. There are independent legal persons, unified accounting and contract system between the head office and the branch. The result is: the relevant departments in the enterprise are at a loss, unable to coordinate all kinds of financial relationships, unable to let people know whether they have achieved financial goals, unable to motivate and restrain employees, and fail to carry out effective performance evaluation. They can easily lead to errors in investment decisions of enterprises, and are difficult to guard against financial risks such as income and expenditure, cash flow, financial risks and fund-raising financial risks, so as to maximize the rate of return on investment and utilization of assets. Enterprises will start from their respective units and ignore the overall strategy of enterprises, resulting in the decentralization of enterprise strength and the overall efficiency of enterprise resources utilization and risk reduction. Therefore, in enterprise management, the choice and implementation of strategy are the fundamental interests of enterprises, and the needs of strategy are higher than all. The financial management of enterprises must be based on the requirements of the general objectives of enterprises and cooperate with the implementation of enterprise strategies, and put forward practical financial strategic objectives of enterprises, so that financial management of enterprises should not make wrong financial decisions and financial plans when the external legal environment and economic environment change, and avoid the waste of resources and the decline of economic efficiency as a result of the disunity of the financial strategic objectives of enterprises and the strategic objectives of enterprises.

　　 Misunderstanding 4: finance and accounting Confusion of relations

Although most enterprises have already established the modern enterprise system, some accountants in state-owned enterprises and even some listed companies will confuse finance with accounting. They think that the accounting department is merely a accounting center, providing financial information, and it is ambiguous and confused about the financial management and accounting work.

At present, there are different views on the relationship between financial management and accounting in academia. There are three main viewpoints, namely, big accounting concept, big financial concept, and parallel view of Finance and accounting. The similarity between the three views is that both financial management and accounting are not the same thing. As to whether the two are inclusive or juxtaposition, they are benevolent and wise.

The author thinks that finance includes accounting, accounting is not a separate economic category, and there are no separate management objects. Accounting is the foundation of financial management and a part of financial management. First, the direct goal of accounting is to provide real, reliable and complete accounting information for enterprise financial management. Its contribution to enterprise management objectives can only be achieved through financial management. The objectives of both accounting are both identity and inclusiveness. Secondly, financial information is not equal to accounting information, accounting information is processed and collate, with financial indicators and text descriptions, financial information is formed. Accounting information is a necessary part of financial information. Third, financial management includes cost management, financing management, investment management, working capital management, and enterprise earnings distribution management. And records, accounting and summarization of these contents should be realized by accounting. Therefore, in content management, financial management includes accounting work, accounting is the information support subsystem of financial management system. Therefore, financial management includes accounting and accounting is the basic work of financial management. Mixing financial management and accounting work in institutions and operations is not conducive to improving enterprise management and improving enterprise management level, but also not conducive to long-term operation and continuous development of enterprises.

　 Misunderstanding 5: Diversification Financial trap

Many enterprises have been keen to diversify their financial management when their financial power and scale have expanded. In their already heated mind, they only remember "can't put their eggs in one basket". But what is the other basket? Are you familiar with it? Do you know it? Do you know it? Can you put it in? What will it result in? They often do not blindly grasp the basic knowledge, basic experience and basic skills in new expansion areas, do not deal with all kinds of new relationships, do not have the backbone of financial management in the new field, do not have enough capital, time and human resources, and so on. This kind of behavior, which is not based on the characteristics of enterprises and social development and keeps the blind expansion of the business base area, often falls into the trap of diversified expansion. As a result, enterprises will suffer from the "big business disease" due to the changes and expansion of the organizational structure and the increase and complexity of the functional departments, resulting in a corresponding increase in factors such as wrangling, exclusion and internal friction, as well as the phenomenon of various departments striving for budget targets, competing for investment and self governance.