Chinese Library ClassificationNo.: F275 Document ID: A ArticleNo.: 1119-4212(2112)18-111-12 Abstract Financial management has the functions of planning, control and supervision in enterprise management. With the development of market economy, financial management plays an increasingly important role. Its position in enterprise management is becoming more and more prominent

Keywords financial management enterprise management center

1. The role of financial management in enterprise management

Financial management is the management of enterprises in terms of value, such as the management of funds, costs and profits. Compared with other management work, financial management is a comprehensive management of value forms, so it is the center of enterprise management. With the popularization and application of computers, Financial personnel have been more involved in management, and economic development also requires strengthening enterprise financial management

(1) Planning role

Financial forecasting is to estimate and judge future financial indicators under the condition of carefully studying and analyzing relevant historical materials and economic and technical conditions. The process of making financial plans is through forecasting and analysis. Find ways to increase income and reduce expenditure. The contents of financial forecast mainly include: sales forecast, capital forecast, cost forecast and profit forecast. The financial plan of an enterprise reflects the funds, expected income and economic benefits needed for production and operation activities during the planned period. < P > (II) Control role < P > Financial control is a method to ensure that the financial activities of an enterprise meet the established objectives and achieve the best economic benefits.

1. Strengthen the basic work of financial management.

the basic work of financial management mainly includes improving original records, strengthening quota management, strictly measuring and checking, regularly taking inventory of property and formulating the internal settlement price system of enterprises, etc. The basic work of strengthening financial management is the premise of doing a good job in financial control

2. Organizing the implementation of financial plans. Through the implementation of the organizational plan, analyze the completion of various financial indicators, evaluate the quality of various management work, and finally achieve continuous improvement, improve efficiency, reduce costs and save expenses, providing a basis for decision-making. Second, enterprise management must be centered on financial management.

Financial management is a management activity with independent specific functions in enterprise economic activities? With the development of market economy, financial management plays a more and more important role, and its position in enterprise management also highlights the nature of the enterprise itself. The role of the enterprise in the market economy system and the relationship between financial management and other management of the enterprise determine that financial management must be in a central position in various management of the enterprise.

(1) The purpose and nature of an enterprise determines the central position of financial management

1. The fundamental purpose of an enterprise is its own profit. Under the condition of market economy, enterprises organize production and business activities in pursuit of capital preservation and appreciation. As long as they operate legally and pay taxes according to law, the more profits they make, the greater their contribution to society.

2. In order to achieve profitability, an enterprise must be based on a good financial situation. Profitability is not the only content of its financial management activities. For enterprises, "taking finance as the center" is not only the concretization of "taking economic benefits as the center", that is, to obtain long-term, stable and tangible profits as much as possible, but also to pay attention to the safety of capital flow, so as to maintain the best capital structure, improve utilization efficiency, ensure timely repayment of debts, and pursue profitability.

(2) Only when financial management is the center of enterprise management can the market mechanism play its role and operate normally

If an enterprise does not focus on financial management, but on output, scale or other non-value goals, the result will inevitably be the failure of the market mechanism and the distortion of resource allocation? For example, in order to expand the scale, some enterprises blindly go on projects regardless of the objective conditions, and dare to borrow loans with high interest rates. Not only does the enterprise bear a heavy burden, but for the society, the capital that is very scarce flows to inefficient places? Some enterprises, whether there is market demand or not, produce a large number of overstocked products in pursuit of output. As a result, not only is their capital turnover ineffective, but it is also a great waste of resources for society.

(3) Financial management is the central link and "leader" of all work in enterprise management

Financial results directly reflect the advantages and disadvantages of all work. Financial management is to coordinate and control all production activities and professional management of enterprises through the operation and distribution of financial funds. The operation of funds, the adjustment of economic interests, the formulation of economic policies, the choice of investment direction and the daily production, supply and sales are all related to financial management. Financial work is everywhere in the economic activities of enterprises, and it runs through the whole process of production and management of enterprises. It is important to maintain efficient productivity and the best consumption index for reducing costs. However, if the production task is overfulfilled or produced ahead of schedule, According to the traditional concept, it is commendable, but according to the financial standard, it is uneconomical for the raw material supply department to purchase high-quality raw materials and fully ensure the production needs. It should be said that the task has been completed well, but if the quality and inventory of raw materials are too conservative, it will reflect the financial waste of funds and the loss of benefits. The product sales department has a full contract and a reasonable price, but it cannot recover the loan on time. It may lead to serious financial consequences because financial management is the "master gate" to control capital turnover, which determines that it must be in a leading and central position in various management of enterprises, and it is the joint and central link in the process of enterprise economic operation.

Third, how to make financial management the center of enterprise management

Only by establishing the central position of financial management can enterprises adapt to the development of the market and remain invincible in the competition? Therefore, how financial management becomes the center of enterprise management is a problem worth discussing.

(a) leaders should attach great importance to

First of all, leaders at all levels of enterprises must establish the concept that financial management is the center of enterprise management, and should clearly understand the importance of financial management. Secondly, speed up the improvement of the quality of financial personnel. China has joined WTO, which puts forward higher requirements for financial personnel of enterprises. It is far from enough for financial managers to have solid professional knowledge. They must also be proficient in computers and foreign languages, be familiar with relevant laws and regulations of domestic and international trade, have certain ability to observe and predict the social, political and economic environment, dare to face risks, control risks and improve their risk decision-making ability. Financial managers should be not only "experts" but also "generalists"

(2) Take financial management as a breakthrough to promote the overall management of enterprises

1. Strengthen fund management.

capital is the foundation of financial management. To implement enterprise management with financial management as the center, we should take capital management as the center, and take capital management as the breakthrough point to create value through capital operation. In order to better strengthen fund management, we must do the following work: first, establish a fund forecasting and decision-making mechanism to effectively ensure the benefit of capital investment; Second, the establishment of internal banks, the implementation of centralized and unified management of funds, reduce the precipitation of funds, improve the efficiency of the use of funds; Third, divide the scope of authority, implement fund quota management, and minimize capital occupation

2. Strengthen cost control.

The cost includes not only the consumption of all kinds of tangible materials and manpower in the production process, but also the intangible costs such as the scale of the enterprise, market development and internal structure adjustment of the enterprise. If the cost is well controlled, the economic profit will increase accordingly; Otherwise, the profits will be greatly reduced or even lost? In order to effectively control costs, all departments of enterprises must coordinate and work together to establish cost awareness, establish an integrated mechanism between employees and enterprises, and stimulate employees' enthusiasm for cost management; Strengthen training and education to improve the skills of employees in implementing cost management; Establish a cost management system to fully develop the wisdom and skills of employees; Constantly promote technological innovation and the optimal allocation of production factors, so that costs tend to be optimized and the economic benefits of enterprises are greatly improved.

3. Establish an assessment system centered on financial indicators. The financial department of an enterprise grasps a large amount of financial information, which has the characteristics of comprehensiveness and sensitivity, and is the guide of enterprise production and operation activities. The financial information is used to analyze and calculate the economic indicators of enterprises, and the viability of enterprises is judged by measuring various data, so as to find out the reasons and solutions.

(3) Improve the management link and optimize the operation mechanism

The operation of financial management is a cyclical process. Namely, financial forecasting, financial decision-making, financial planning, financial control and financial analysis. The stages in which they are interrelated and have certain differences are called the links of financial management. If we let the management process run spontaneously and relax the management at all stages, the efficiency will be low, which will seriously affect the virtuous circle of financial management. (1) Emphasize the core position of financial decision-making, and establish a scientific financial management planning mechanism. The planning mechanism refers to the scientific prediction of the financial activities of the enterprise in a certain period by using various historical data and other information in finance, and make accurate financial decisions, and according to the results of financial decisions, prepare the financial plans of the whole enterprise and each responsible unit to guide and control the future financial activities.

1. Improve financial control methods and establish a scientific financial management adjustment mechanism.

regulation mechanism refers to the use of relevant information and certain control methods in the process of financial management to exert influence on the financial activities of enterprises in order to achieve various goals stipulated in the plan? In order to establish a scientific financial management adjustment mechanism, we must improve the method system of financial control, including protective control, feedforward control and feedback control

2. Strengthen financial analysis and establish a scientific financial management incentive mechanism.

incentive mechanism is a system that compares and analyzes the actual figures with other relevant data after the event according to the performance report compiled by each responsible unit, evaluates and assesses the operating performance of each responsible unit, rewards the superior and punishes the inferior, and ensures the smooth implementation of the economic responsibility system? With the advent of the new economic era, knowledge, information technology and human resources have been paid more and more attention, and the rise and application of e-commerce have given financial management new connotations and new challenges. Challenges and opportunities coexist, as long as they are good at seizing opportunities and standing the test in the challenge of knowledge economy, enterprises will take off, and only by establishing the central position of financial management can enterprises be in an invincible position in the ever-changing market competition

References:

[1] Ma Lin, Zhang Canhui. The position and role of enterprise financial management. China Coal.2112.28 (8): 22-.