Financial Management Of Private Enterprises

A survey found that the financial management of most private enterprises is divided into the following problems:

1, accounting is simple and original.

2, financial control is weak.

3, the quality of financial personnel is low.

These are some phenomena, not the essence of the problem. Let's see, compared with ordinary people, business owners are elites, these simple problems can not be seen, but they do not want to do it. Why? Because they are not cost-effective because of cost-effectiveness considerations.

What is the essence of the problem? This is closely related to the operation mechanism and growth process of private enterprises.

Different from state-owned enterprises and foreign enterprises, private enterprises are mostly born with grass roots, lack of capital and poor living environment. They are often in a weak position in the market competition, which causes the primary task of private enterprises to survive in a brutal market environment.

Secondly, for a long time, the rapid development of China's economy has brought a large number of market opportunities. Many private enterprises that have solved the problem of capital have been developing well, but the endogenous development ability of private enterprises has not been substantially improved.

Because enterprises do not need good endogenous development ability, they only need to grasp opportunities.

The survival consciousness and viability of private enterprises are very strong, but the system development consciousness and development ability are relatively weak. The impact on financial management of private enterprises is obvious. Financial management emphasizes systematicness, standardization and rationality, and conflicts and conflicts with opportunism. It is not difficult to understand why financial management is weak.

Secondly,

The impact of financial management is based on accounting, while accounting problems are also legal problems, especially in tax matters. In view of the fact that China's existing legal system is not good enough, the rules and regulations are often distorted and the cost of illegal activities is low, enterprises generally lack the spirit of contract and integrity, and are very dependent on interpersonal relationships, moral integrity and hidden rules.

Instead of writing contracts or agreements, false promises are overrun by enterprises, and without original evidence support is very common in private enterprises. This has also become one of the root causes of poor accounting.

Governance of private enterprises

Most of them are proprietary rights.

The overlap of management style is one word, one pen, and one grasp.

An important core of modern enterprise system is the separation of ownership from management. The advantage of modern financial management lies in the service for establishing modern enterprise system, managing and evaluating the entrusted business responsibility of operators, overcentralized and overlapping ownership and management rights, and weakening the professional status of financial management.

This situation has set up a group company in the diversification of enterprises, and it has to be authorized. It has to rely on the management of managers to get a certain degree of relief.

The problem of continuous profit for enterprises is that the goal of modern financial management is to maximize the value of enterprises. But value judgment is a difficult problem in itself, especially the long-term value. In the long run, we will all die. Therefore, for the owners of enterprises, the maximum value of enterprises is not as good as two words of earning money. In essence, it involves the thinking of business operation, that is, opportunism management.

Because opportunistic management thinking leads to the lack of leading logic in business activities and more interference from human activities, it is normal to break up walls and make up for the west wall.

Most enterprises do not establish sustainable profitability, and the resources and capabilities of enterprises are difficult to focus.

To sum up, the problem of financial management appears to be important in the development stage after solving the problem of survival. It is mainly to establish sustainable profitability, separation of ownership and management rights, and legal profit stage, which also exists in contradiction with opportunism making money, the contradiction between centralization and decentralization, and the contradiction between lawful compliance operation and grey Management (especially in the stage of enterprise listing).