Analysis Of Several Aspects Of Financial Management

　　 First level: Bookkeeping

At this stage, the enterprise is in its initial stage, and its staff size is not more than 30 people. Its business is relatively simple. From the aspects of products, business units and regions, management points are few and single, and the scale of operation and capital is also small. Therefore, the requirements for financial functions are low, limited to cashiers, records, simple accounting and tax returns, and finance is a backstage isolated service function. This stage is easy to produce problems because of the limited level of accountants, often lack of strict audit procedures, accounting attribution, accounting accuracy and poor standardization, there are potential security risks of funds. In addition, business flexibility leads to many financial account items, and accounts can not truly reflect the overall business situation. A better solution is to hire experienced and experienced accountants or institutions to check accounts regularly and standardize account setting, accounting attribution, reconciliation, documents and credential books. And establish simple financial control measures, such as cost standard, loan limit and so on.

　　 Second realm: control

Enterprises grow further and expand into larger markets, product lines and organizations. At this stage, due to the increasing operation of capital and goods, the risks faced by enterprises are increasing, and the possibility and extent of damage to property losses are expanded. Organizational units, personnel and geographical management points have increased rapidly, which has also increased the risk of capital allocation and cost control. At the same time, rapid expansion requires higher capital turnover. If there is no accurate and timely understanding of the overall financial and financial situation, it will lose market opportunities or cause a cash flow crisis. This stage of the enterprise, like a fast Mercedes Benz train, if there is no set of good braking devices, encountered bend, sudden situation and so easy to derail. Therefore, at this stage, enterprises need an effective control system urgently, so that sustained Mercedes Benz can be built on a controllable platform.

In line with the management requirements at this stage, financial management emphasizes financial safety, such as capital, goods and assets, and requires accurate accounting and accounting. Finance is widely involved in the control of business processes, closely related to business, and set up a set of financial control system, ensuring internal safety from four aspects of capital, inventory, information and accounting. The problems that are easy to arise at this stage are: lack of systematic analysis and understanding of possible risks; the use of control means, but not the control effect, and lack of scientific assessment methods; the control points and control methods are not appropriate, and have no control effect. It focuses on the control of accounting system, ignores the financial control of business system, and makes financial control still remain behind the event, so that it can not control the business. To solve this stage of the problem requires professionals who know both management and finance and have good overall situation and systematic thinking. In practice, an enterprise can build this control platform by hiring such a chief financial officer, or by hiring a professional advisory body.

　　 Third realm: Analysis

Enterprises will grow further, or be in the leading position in the existing market, or enter diversified development, and compete in a wider range of markets. The market, competition and internal management environment faced by enterprises are more complex, and the information is rather complicated, so we need to choose and analyze to support various decisions. Without the support of such information, the risks of decision making will not be able to carry out or make mistakes, such as strategic choice based on financial analysis, business portfolio, performance management, investment and financing decisions, operational efficiency improvement, implementation of comprehensive budgets, etc. All these will hinder the expansion of market share and profit growth of enterprises. Therefore, this stage requires financial performance management, comprehensive budgeting and decision support services to help enterprises make profits. Financial participation is in advance planning and control.

Routine index analysis is an important part of financial analysis, but it is mainly used by investors. For business managers, the content of financial analysis is much more than that. At this stage, enterprises need to establish their own financial analysis system and models. The results of financial analysis can be widely used in performance planning, profitability analysis, efficiency improvement and salary setting.

　　 Fourth realm: capital operation

At this stage, enterprises use capital means to expand rapidly and enter diversified expansion and development. Enterprises raise funds through listing, or carry out other strategic and financial financing. At the same time, take M & A and other means to expand. This stage of Finance focuses on the operation of capital, the direct operation and management of investment and financing, and the capital structure optimization and profit distribution involved.

　　 Fifth realms: financial benefits

At this time, enterprises have more complex capital structure, corporate structure, large amount of working capital, and bargaining chips for tax negotiations. This stage of finance is mainly through tax optimization and management of working capital, which directly produces benefits for enterprises, so as to avoid unnecessary tax and capital idle, resulting in losses.