How To Manage Financial Affairs Well In Modern Enterprises

The most important financial management problem in modern enterprise development is how to manage internal control, especially the management of enterprise financial risk. The risk of enterprise financial management is mainly manifested in many aspects, such as:

Currency risk - the fluctuation of currency exchange rate directly affects the performance of enterprises.

Interest rate risk - interest rate fluctuations may increase borrowing costs and reduce output of investment projects.

Liquidity, if assets are poor in liquidity, may cause enterprises to fall into financial crisis.

Cash turnover -- the speed of cash withdrawal directly affects the efficiency of cash utilization by enterprises.

Reinvestment - capital may not return to the same return after the end of the short term high return investment project.

Credit risk - customers' long-term arrears of payment, resulting in a large number of corporate cash squeeze.

Tax risk - the lack of a manager who knows the tax law better.

The risk of these enterprises' financial management, especially the risk of capital mobility, is most important. In the course of business operation, losses may arise, but losses will not necessarily bankrupt enterprises. However, if an enterprise does not have enough capital, it will not be able to achieve rapid development. It will also be declared bankrupt because it is unable to repay its debts. Therefore, enterprises should pay close attention to cash flow in real time. The main concerns of corporate cash flow are: enterprise losses, accounts receivable, inventory and so on.

Statistics show that 80% of bankrupt enterprises in developed countries still show profits when they fail, and the main reason for their closure is insufficient cash flow. China is no exception. Hong Kong The largest investment bank's Peregrine company and the powerful giant company in the mainland of Zhuhai are also in good profitability, but the net cash flow is not enough to repay the maturity debt, causing a financial crisis and plunged into bankruptcy. It can be seen that good profitability is not a sufficient condition for an enterprise to develop continuously and healthfully. Whether it has normal cash flow is the enterprise. Continuous operation Premise.

Some people think financial accounting It is a measurement technology, some people think it is a management method. But with the development of economy, more and more people think that financial accounting is a way of enterprise management, especially in the use of funds in enterprises. I wonder if this statement is accurate? What kind of role does financial accounting play in enterprise management? How can we make it play a better role?

Financial accounting is an important basic work of modern enterprises. Through a series of accounting procedures, it provides useful information for decision-making and actively participates in business management decisions. It improves the economic efficiency of enterprises and serves the healthy and orderly development of market economy. With the establishment of modern enterprise system, modern enterprise management has gradually become a huge system engineering consisting of personnel management, production management, management, marketing management and financial accounting management. Financial accounting is the information support system of various management activities. Enterprise managers make decisions according to the results of enterprise management and operation provided by financial accounting. The goal of financial accounting is to ensure that managers perform their duties and provide useful information for investment, which highlights the value of financial accounting and shows the important role of financial accounting in enterprises.