Enterprise Management: Centralized Control And Hierarchical Management

First, institutional finance: making rules of the game and implementing them all in all.

The establishment of an enterprise must establish a corresponding system. In Chinese, "system" is restrained and restricted, and "degree" has the meaning of scale and standard.

The combination of these two words shows that the system is the yardstick of controlling people's behavior.

Financial control is the restriction and regulation of financial activities. Since we must control and regulate, we must have a control standard and scale. We must establish a company's financial system and monitoring system. The essence of the financial system is to control people's financial behavior. It is a game rule established in advance. Monitoring is the regulatory system adopted to ensure the effective operation of the system.

No rules, no Cheng Fangyuan, it is far from enough to establish rules. In the process of managing finances, enterprises should persevere and implement these rules in an all-round way so as to achieve the financial results of enterprises.

Enterprise management often refers to "centralized control and hierarchical management", which combines centralization and effective decentralization of departments, that is, centralization of power in financial management and effective decentralization in production and operation.

Financial centralization is conducive to mobilizing the financial data of branches and departments at any time, eliminating the malpractices caused by information asymmetry, and controlling the limited resources of enterprises at the same time. It helps to use limited funds to invest in enterprises and repay debts due to maturity, speed up capital turnover, reduce costs and financial risks, and achieve the goal of enterprise enrichment through unified management.

Financial control from enterprise investment to profit distribution covers the whole process of enterprise production and operation activities, but its core and leading is the cash receipts and payments of enterprises, and the cash flow.

Cash flow records mainly the cash flow of enterprises in the activities of selling goods, providing services, buying goods, receiving services, investing abroad and paying taxes, reflecting the cash receipts and payments of business. Cash flow for enterprises is just like blood for the human body. Only when the blood is sufficient and the flow is smooth, can the human body be healthy. The healthy cash flow can make the enterprise grow healthily.

Enterprises need to have enough cash to participate in the operation and sell the manufactured products in time to recover cash in time. Cash flow is more practical and less manipulative than profit. Cash flow is a necessary element for enterprises to survive. It can not only reflect the ability of payment of enterprises, but also prove the credit and strength of enterprises, and it is the center of enterprises' wealth control.

Enterprises must implement a set of practicable financial management standards in order to get money in advance, and specify the level and corresponding standards of each link in advance to achieve the objectives of the enterprise.

At present, the implementation of enterprises is mainly a comprehensive budget management.

Overall budget is based on production conditions and production and operation indicators, under the principle of maximizing efficiency, it determines the optimal allocation of physical workload and monetary resources, fully embodies the combination of production and finance optimization, and avoids the phenomenon of disconnection between calculation and doing.