How To Be A Good Financial Manager

The goal of the financial manager is to increase revenue and reduce expenditure.

Income increase and expenditure reduction must be considered in a unified way.

The goal of expenditure is to earn income, and better income can ensure the necessary expenditure.

We can not simply talk about income. Because there is no appropriate input and expenditure, only income, it is no tree, no source of water; nor can we simply talk about spending money, simply talking about spending money, will enter the death cycle of reducing expenditure.

The correct expenditure is not the reduction of total expenditure, but rather the reduction of total expenditure.

Therefore, the fundamental way to save money is to increase input and output, do not invest in output, and constantly increase input output ratio, so as to ensure a reasonable level of input output.

There are two ways to increase revenue and reduce expenditure. One is supervision, the other is service. These two aspects are unity of opposites. Service is for deep participation, for better supervision; supervision is to help find problems, correct mistakes in time, and achieve more effective service.

To do well in supervision and service, two consciousnesses must be improved.

1, institutional awareness.

It is necessary to strengthen the construction of internal control system in enterprises, so that there is a law to follow, laws must be followed, law enforcement must be strict, and laws must be investigated.

Supervision is internal control, and the system is the foundation of internal control.

and

Without a complete management mechanism and relying on everyone's subjective judgments and ideas, there is no internal control of the system, not internal control.

2, normative consciousness.

Norms are considered at the national level.

Enterprises should not only stay at the institutional level of the company, but also fully study the laws and regulations of the state, and abide by the laws and regulations of the state, including company law, tax law, accounting law, negotiable instruments law, etc.

Related links:

It is foreseeable that the issuance of small and medium-sized private placement bonds can also play a positive role in improving China's credit market. The future is bright and the road is tortuous. The private debt of small and medium-sized enterprises has made a solid step towards the real market orientation of capital and capital in China.

There is no threshold requirement for net assets and profitability. The issuing interest rate does not exceed 3 times the benchmark interest rate of the same period of the bank loan, and the period is 1 years or more. No guarantee or credit rating is required, no administrative license is allowed, and the filing system is adopted. This kind of corporate bond, which is similar to fully marketization, is the private debt of small and medium-sized enterprises.

For small and medium enterprises with limited financing channels, the formal introduction of private debt is undoubtedly a good news for them. The private debt of small and medium-sized enterprises has also enriched our capital market and provided more opportunities for participants in the capital market such as securities firms and funds.

In the United States, the scale of bond financing of non-financial enterprises is nearly four times that of publicly issued stocks, while China is similar to 1:1, thus we can see the development potential of China's bond market.

Chinese enterprises prefer to finance the stock market. Besides the consideration of the low cost of financing, the restriction on the financial terms of corporate bonds is no less than the IPO condition, which is also an important factor hindering the development of corporate bond market.

With the quickening of the marketization reform of the IPO market and the introduction of compulsory dividends, with the lifting of the mandatory conditions of bond issuance and the leading role of market pricing, any enterprise can directly finance through private debt, and bonds will become one of the main options for enterprises to directly channel their capital.

Private debt is equivalent to junk debt in the United States, while junk bonds can only be done by investment banks in the United States. However, in China, investors who invest less than 10 million can participate in certain conditions.

Mike's first investor fund firmly held these junk bonds.

As a result, in 1974~1976, the first investor fund, which specializes in junk debt, has been the best performing fund in the United States for 3 years in a row.

This also gives a lot of private equity funds much room for imagination.

But the fund's enthusiasm for private equity participation does not seem to be high. According to the statistics of Qing Ke database, only 9% of the hundreds of agencies surveyed indicate that they will invest in private debt, and 53% of them choose to wait and see.

The reason is that the coupon interest rate is still low and the credit rating is not standardized.

The issuance method stipulates that the rate of private debt issuance of SMEs should not exceed 3 times the benchmark interest rate of bank loans, which is far below the interest rate of private lending on the market. This shows that this is still not a kind of market-oriented pricing behavior.

Domestic credit reporting system is still immature, issuers' credibility is worth testing, and there is no definite agreement on the use of funds. Especially, many issuers' associated enterprises are enterprises with serious capital gaps such as real estate. The risk of misappropriation of funds is high, and the effect of fund use is difficult to guarantee.

All of these factors affect the supply of private debt funds.

Of course, as issuers, they can selectively use some credit enhancement measures to improve the attractiveness of the offering, such as setting up guarantees, insurance, additional credit ratings, contractual capital use and liability for breach of contract, and allowing Dong Jiangao to participate in subscription and other measures to enhance credibility. At the same time, choose intermediaries with strong endorsement ability, such as investment banks with high market position and strong underwriting ability, high professional ethics, trusteeship institutions, accounting firms and credit rating agencies will play a good role in increasing credit.