The Concept Of Financial Management Needs Updating.

The effectiveness of corporate financial activities ultimately depends on the knowledge and wisdom of people and the degree of human effort.

Therefore, paying attention to the role of human beings and human development is the basic requirement of modern enterprise management, and is also the inevitable requirement of the new economic era.

Private enterprise financial management is only people-oriented, the personalization of all financial activities, and the establishment of a financial operation mechanism that combines responsibility, power and profit. It should strengthen people's motivation, carry out democratic and participatory financial management, fully mobilize the enthusiasm, initiative and creativity of employees, and promote the externalization of individual potential in the continuous learning and knowledge accumulation of employees, so that individuals, enterprises and society can achieve their own realization and development.

In the future, the competition of enterprises is no longer just the competition of material wealth and scale of enterprises, but also the competition of quality and quantity of knowledge capital.

Knowledge will become the most important factor of production and the most important source of economic growth for private enterprises in the future.

To adapt to this, the financial management of private enterprises will also be a kind of knowledge management.

Its goal is to try to convey the most appropriate knowledge, information and skills to the most appropriate people at the most appropriate time so that they can make the best decisions and achieve maximum benefits.

Therefore, only by increasing the knowledge content and firmly establishing the concept of knowledge management and financing can the financial personnel of private enterprises gain the competitive advantage and realize the revitalization of private enterprises.

In the new economic era, all economic activities must be guided by rapid, accurate and comprehensive information, and information has become an important medium for market economy activities.

The new information technology revolution, which takes digital technology as the guide and the information superhighway as the main content, increases the volume of information dissemination and accelerates the speed of communication, thus shortening the time of economic activities and reducing the space, resulting in the emergence of "media space" and "online entities".

Therefore, the financial management of private enterprises must set up the concept of information management, proceed from comprehensive, accurate, rapid and effective collection, analysis and utilization of information, and make financial decisions and capital operations in order to find opportunities for enterprises to develop.

The financial management of modern enterprises should evaluate the viability of enterprises from the possibility of obtaining cash in profitable business, the ability to generate cash within the enterprise and the relative reliability of external cash acquisition.

If there is no cash flow, the capital turnover of enterprises will inevitably be blocked, and enterprises will be unable to survive.

No matter how profitable the enterprise is, how big the profit of the accounting books is. If the enterprises want to survive, they must get cash from the production and operation activities as soon as possible and maintain their financial viability. This is also a necessary prerequisite for the survival and development of the private enterprises.

Private enterprise

We must have the ability to manage resources in cash to adapt to all kinds of competition changes.

In the new economic era, knowledge and technology can be shared and open.

On the one hand, the speed of information dissemination, processing and feedback is faster and faster, which will inevitably aggravate the intensity of market competition. Which enterprise will take the first step in information sharing, this enterprise will gain the advantage in competition; on the other hand, the networking of information, the integration of science and technology and the globalization of the world economy will inevitably promote cooperation among enterprises.

Therefore, a striking situation has emerged, namely, seeking cooperation among competitors and even establishing alliances to form a complex entity that is both a competitor and a partner.

This phenomenon of unification of competition and cooperation is not the operation tactics of individual enterprises, but the basic mode of enterprise development in the new economic era.

This requires private enterprises to consider their dual relationship with their competitors from a larger scope, higher level and more angles in financial decision-making and daily management.

We should seek advantages and avoid disadvantages so as to achieve harmony and unity of the economic interests of all parties and promote the common development of the whole industry or region.

China's socialist legal system is constantly improving and improving.

Financial managers should establish the concept of rule of law, consciously abide by the implementation of relevant laws, regulations and systems, and manage various financial activities in accordance with the law.

This is not only the objective requirement of normalization and institutionalization of financial management in private enterprises, but also the obligation of every private enterprise's financial management personnel.

In the new economic era, with the rapid development of modern communication technology and pportation tools, the economic exchanges between the countries of the world will become increasingly close. Especially after China's entry into the WTO, international trade and pnational operations are unprecedentedly active. Enterprises, including private enterprises, will continue to develop towards internationalization and collectivization. Enterprises should plan their business strategies in the international environment, and financial management of enterprises should naturally comply with the requirements of globalization of business strategy from an international perspective.