How To Improve The Financial Management System?

First, change the concept of financial management and make good investment decisions. Decision making is one of the most important tasks in enterprise management. Decision making is cost effective, which is easily overlooked. For example, a correct decision can make a profit of 1 million yuan for an enterprise. If a wrong decision is made, not only does it not earn 1 million yuan, but it loses 500 thousand yuan, so the wrong decision cost is 1 million 500 thousand yuan.

　　。 Therefore, cost control must be made in decision making. Investment decision is the most important and important thing in all decisions of an enterprise. An important investment decision making mistake often causes a company to get into trouble or even go bankrupt.

Financial managers of enterprises must pay attention to the following aspects when considering investment: first, financial managers should make good economic decisions for enterprises. Act as Controller It must be clear that investment is an economic activity. In the wrong investment decisions, many mistakes are caused by the fact that the investment decision makers do not make decisions from the economic laws themselves, but rather because of human factors making decisions lightly.

Secondly, financial management We should make good investment management procedures for enterprises so as to make investment decisions scientific and democratic. Different types of investment have different management procedures, which require different departments to examine and approve. Third, financial management should control cost, risk and revenue for enterprises. The purpose of investment is to have returns and benefits. Therefore, investment cost control must be implemented, risk awareness should be taken and risk avoided.

Second, stick to stability. Principle Guard against financial risks. Risk and profit are twins, and no project is zero risk. Enterprises should establish a risk prevention and control mechanism, regularly write investment analysis reports, risk warning and evaluation. Before investing in the project, risk assessment and risk control plan should be carried out to ensure the expected return on investment.

Managers should make clear that financial managers should monitor the sensitive financial indicators such as asset sales rate, return on assets, interest multiplier and cash inflow ratio, focusing on the assets, cash, investment, profits, expenses, marketing and so on. Based on the need for year-on-year and annulus analysis, formulate corresponding measures and plans to ensure the investment efficiency of enterprises, so as to achieve the goal of maximizing economic benefits.