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What are the contents and difficulties of financial management?
The following four suggestions are helpful to your company's current development: 1. Don't "wear big shoes" or "wear small shoes" to reduce efficiency and waste resources. "Small shoes" will hinder development. In a growing enterprise, it is very important to establish an appropriate financial management system. Because of the high requirements of financial management, many personnel and complicated process system, it will not promote business development and management improvement, but may lead to resentment and conflict in business departments and affect business development. At the same time, due to the mismatch of the overall management level, the implementation is often a mere formality, which also dampens the enthusiasm of financial personnel and cultivates bad work habits. It is more common to "wear small shoes". There is no system in financial management, or lack of systematic management ideas, which leads to the lack of important financial strategies and financial functions. Such as centralization or decentralization? What function should finance play? What are the company's assets and funds, and what are the key risk points and control points? What are the requirements for financial information and what is necessary for enterprise management decision? How to ensure the data is correct and so on. It is conservatively estimated that more than half of the growth enterprises do not have systematic financial management ideas and methods. No wonder many bosses complain that financial management is chaotic, information is unclear, data is inaccurate, analysis is useless, and more or less property losses occur from time to time. 2. Development speed and fund raising In the process of growth, a huge temptation faced by entrepreneurs is financing. For those companies with good growth, there are many opportunities to knock on the door, such as bank loans, listing at home and abroad, strategic or financial investment, etc. Some enterprises don't know whether the development speed needs financial support or the huge financing opportunity needs the cooperation of scale and speed. In order to get on the Growth Enterprise Market, some growth enterprises usually make extraordinary rapid expansion, expand their business scale through bank loans and other loans, and acquire other products and companies in an attempt to build a "kingdom" with more attractive strength and speed. However, due to the inability of management to keep up with this development speed, most of the investment projects ended in failure, and they quickly went bankrupt because of large-scale losses and insolvency before listing. How fast should it develop? The answer to this question is often closely related to fund raising. However, "water can carry a boat, but it can also overturn it." The answer to this question may be one of the key strategic issues that growth enterprises need to consider, and it is also one of the biggest risks. 3. Expansion and control In addition to speed, another difficult problem of expansion is control. This is manifested in three aspects: first, capital control in expansion, second, performance control in expansion, and third, corporate culture control in expansion. These three aspects are all related to financial management. The direct result of the expansion is the geographical dispersion of enterprises, the increase of management points, the increase of personnel scale, the increase of business units and the increase of various legal person institutions, such as branches, offices, joint ventures and subsidiaries. This distribution will inevitably lead to the expansion of costs and expenses, and increase the complexity and difficulty of management. At the same time, in the expansion stage, capital is often a scarce resource, which creates contradictions. How to find a new management model that can meet the expansion requirements and is within the controllable range to ensure the sustainable development of enterprises with sufficient financial support has become a major challenge for financial management of growing enterprises. Performance and corporate culture control are, in the final analysis, issues of organizational management. The core content of organizational management is performance management and salary incentive. On the one hand, it is necessary to control the total salary cost within an economic and reasonable range; On the other hand, we should guide the efforts of all members of the organization by formulating key performance indicators; Through the corresponding salary incentive policy, create internal fairness and competition and stimulate the enthusiasm of organization members; Through the analysis and monitoring in the implementation, we will constantly strengthen the objectives and improve the gap, thus ensuring the realization of the strategic objectives of the enterprise. These constitute the important content of financial management at this stage-performance management, which requires financial personnel to start from the height of overall organizational management and strategic management and become the promoters of enterprise strategy and goal realization. 4. Market reaction and decision support If the previous challenges require finance to be the promoter of strategy implementation, then here, finance becomes the assistant of strategy and tactics formulation. A series of important business decisions, such as product pricing, business combination, customer selection, sales policy formulation, production and procurement decision, all need corresponding financial data and analysis suggestions. The market faced by growth enterprises is changeable, and high growth will inevitably bring new competition or more participation in the competition with large enterprises. In such an environment, it is very dangerous to make blind or wrong decisions because the information is not in place. This kind of analysis requires financial managers to take the initiative to look at and find problems from the perspective of management, and provide valuable suggestions to decision makers through professional methods and tools.