from SARS to avian influenza, and unexpected events such as catastrophic fires, floods, mudslides, and mine disasters occur frequently. For those who are not involved, it seems to be used to it, as if there is no sudden feeling, but for the affected enterprises, it is sometimes fatal, the products can't be sold, the inventory appears too much, a large amount of funds are stagnant in the production and sales fields, the capital turnover speed is slow, the material supply chain is cut off, a large number of accounts receivable can't be collected, and dealers and consumers demand returns in succession, and so on. Of course, there is another scene. Under the influence of unexpected events, the products of enterprises have become scarce resources, the market demand has suddenly increased, sales have been very hot, accounts receivable have been greatly reduced, and a large amount of cash has flowed into enterprises, and overtime work can not meet the demand. For example, during the SARS period, the production capacity of enterprises producing disinfectant, thermometers, masks and so on has expanded several times or dozens of times. However, after SARS, some enterprises have to face financial crisis because of the sharp decrease in market demand and excessive investment in the early stage.
since unexpected events have happened, and the financial affairs of enterprises are really expected to be affected by them, how should enterprises conduct financial management? Should we establish a financial management system for emergencies? How to build such an emergency system? How to reduce the losses caused by emergencies to a lower level is worthy of in-depth study and discussion.
1. Classification of emergencies
1. Emergencies caused by internal reasons of the enterprise
Such emergencies are caused by internal reasons of the enterprise system, such as product quality problems, serious decision-making mistakes of management, employee strikes, production accidents and other reasons, which bring pressure to the financial work of the enterprise, lead to financial crisis, and the financial problems are also common.
2. Emergencies caused by external reasons of enterprises
These emergencies are caused by external reasons of enterprises. Such as "foot-and-mouth disease", SARS, natural disasters, wars, sudden changes in the market, adjustment of national policies and regulations, ups and downs of the economic situation, changes in foreign exchange, technological changes, drastic changes in the industrial competition pattern, political and cultural changes, sudden changes in partners and other reasons have brought financial crisis to enterprises.
in the face of sudden financial crisis, some enterprises are often at a loss, unable to start, unable to take the initiative to manage assets and operate funds in time, and will only persevere with resignation, which may eventually lead to insolvency, serious financial problems and bankruptcy. The following two examples are familiar to everyone:
Case 1: In the spring of 2113, the sudden SARS made everyone exhausted, and also "tossed" some enterprises into bankruptcy, but also "created" a number of enterprises, such as those producing disinfectant, thermometers, masks and other products, to seize the critical period, expand production and "get rich overnight". Two thymic immune preparations produced by Chengdu Di 'ao can improve the body's disease prevention and resistance, shorten the treatment cycle of infectious diseases, and become a good medicine against SARS, but only a few enterprises such as Di 'ao can produce this medicine in China. The demand for drugs has soared, and hundreds of phone calls are received every day, and customers from all directions come to buy drugs with cash. The Coordination Office of Chengdu SARS Prevention and Control Team even mobilized 61,111 thymosin by coordination order, but at that time, Di 'ao could not meet the market demand by working overtime. So in mid-April, Di 'ao decided to expand production, increasing the production capacity to more than 11 times, and invested more than 11 million yuan for this move.
Case 2: On September 3, 2111, CCTV News 31 reported the program "New moon cakes are released every year, and the stuffing is aged again and again", exposing the aged moon cakes produced by Nanjing Guanshengyuan. Enterprises with the title of "Guanshengyuan" in various places have been deeply implicated, and their sales volume has dropped sharply. On the afternoon of the same day, Nanjing Health Supervision Office went to Guansheng Garden for sampling and collected more than 11 kinds of moon cakes for testing. The finished product warehouse and stuffing warehouse of the factory were all sealed up by the health supervision department, and 26 thousand moon cakes and more than 511 barrels of stuffing were sealed up. From the early morning of September 4, local shops urgently removed all kinds of moon cake products from the counter of Guanshengyuan. After the exposure of CCTV, Guanshengyuan Food Factory sent a complaint to all dealers, and the voice was wronged. However, out of responsibility for consumers, businesses decided to suspend sales. Many merchants promise consumers that the sold Guanshengyuan moon cakes will be returned unconditionally. Merchants who bought Guanshengyuan moon cakes also demanded returns from manufacturers. On February 4, 2112, Nanjing Guanshengyuan filed a bankruptcy application with the Nanjing Intermediate People's Court because of poor management, chaotic management and insolvency. This is a "fatal" emergency caused by product quality problems. From the company's financial point of view, using old stuffing to make moon cakes caused customers to return goods, the finished product warehouse and stuffing warehouse were sealed up, the funds could not be withdrawn, and finally bankruptcy was declared due to insolvency. On October 4, 2114, the bankrupt assets were auctioned for the first time.
The above two examples are emergencies caused by external and internal factors respectively. Due to the different effects of emergencies, the financial problems they face are also very different. In the face of emergencies. The principles that should be paid attention to in strengthening financial management are as follows: financial work should be unified in leadership, command and concentration; The disclosure of financial information should be timely and transparent; It is necessary to plan ahead and establish an emergency financial early warning system; Strengthen the financial crisis awareness of all employees; Establish an emergency management plan.
II. Financial budget management under emergencies
(1) According to the impact of emergencies, the sales budget is comprehensively revised by using the information collected from sales personnel and purchasing personnel.
(2) according to the sales budget, prepare the production budget for the special period, and make a comprehensive and timely analysis of the collected information.
(3) according to the production budget, prepare the direct labor, direct materials, manufacturing expenses and cost budget for the special period. In the process of compiling, the influence of events is considered comprehensively.
(4) Prepare special cash income and expenditure budget, and pay special attention to the occurrence of unexpected events and expected expenditures.
(5) The estimated income statement, balance sheet and cash flow statement compiled from the above budget are used as reference for the special period.
Third, the management of current assets under emergencies
1. Cash management in special periods
In special periods, too little cash reserves restrict the payment ability of enterprises and increase the risks of enterprises. If there is a cash shortage, it may seriously affect the production and business activities of enterprises. Therefore, it is necessary to strengthen cash control, improve cash utilization and speed up cash withdrawal. At the same time, strictly control expenditure and delay expenditure as far as possible without affecting business reputation and corporate image. We should pay more attention to the following two points:
(1) We should keep abreast of the occupation and turnover of funds and check the cash inventory every day by compiling the daily report of cash and bank deposits in special periods. Be aware of the cash settlement.
(2) Strictly review all expenditure items, especially major expenditure items, which need to be strictly reviewed and the expenditure approval system should be standardized.
In addition, it is necessary to achieve the daily settlement, ensure that the book balance of cash on hand is consistent with the actual inventory, the balance of bank deposit account is consistent with the balance of bank statement, and ensure that the cash and deposit journal amounts are consistent with the general ledger of cash and bank deposit respectively. In short, for enterprises under unfavorable circumstances, we should adopt a more stable cash management method, timely reflect the cash use and turnover, and prevent a large number of unnecessary demand cash from stagnating in the production and sales fields to cope with the urgent need for cash in emergencies.
2. Management of accounts receivable in special period
Accounts receivable are the product of market competition, which can be converted into funds or bad debts. For enterprises affected by unexpected adverse factors, it is more important to receive the payment in time. In this case, the problem of accounts receivable is more prominent. If the proportion of accounts receivable in sales revenue is too large and cannot be recovered for a long time, it will inevitably make the enterprise's capital turnover difficult and the liquidity of assets decline, which is likely to lead to a full-scale crisis because the other party cannot return the payment in time. How to manage accounts receivable, of course, is not only done after emergencies. We should do a good job in this aspect and strengthen the management of accounts receivable for a long time. We should strengthen the following aspects:
(1) Clear the departmental boundaries of accounts receivable, that is, clear the management department of accounts receivable. At present, the accounts receivable of many enterprises are managed by the sales department. It is convenient to do this, but there are management loopholes. Because of the lack of necessary control links or insufficient control, the fraud of salespeople will naturally increase. How reliable is the evaluation result if a salesperson is allowed to make a fair and objective evaluation of his own business? In the event of an emergency, more people fish in troubled waters, which is even more dangerous. Obviously, it is not reasonable to manage it only by the sales department itself, which often leads to fraud. There are also most people who think that it should be managed by corporate accountants because they are familiar with this business. However, even though financial personnel have a clear understanding of accounting treatment, they do not know the specific situation of customers very well, and it is not scientific and reasonable to leave it to financial personnel blindly. In practical work, accounts receivable management is an important part of modern enterprise marketing management and the core of enterprise credit management. If an enterprise doesn't know its customers, can it make a decision to sell on credit? What kind of customers can sell on credit? What is the appropriate credit sales amount? What kind of customer would rather reduce the price than sell it on credit? Everything must be analyzed scientifically, and we can't just consider the relationship. Especially at this critical moment, it is a good strategy for enterprises to respond quickly and deal with the crisis in do or die by using credit sales flexibly and reasonably determining the cash discount and discount ratio. Therefore, in the daily management activities, there should be such an organization specializing in marketing strategy and customer credit in the internal organization management of enterprises to manage accounts receivable, that is, to establish a special collection department and a credit management system suitable for their own characteristics, and not to know how to strengthen credit evaluation until a crisis occurs.
(2) In accounting, supplementary accounting should be carried out for accounts receivable, and a system of accounts receivable write-off should be established. Write off the accounts receivable one by one according to the sequence of occurrence time of accounts receivable and the sequence of payment recovery, so as to accurately confirm the aging of accounts receivable; For accounts receivable that have not been dealt with due to quality and quantity contract disputes, separate accounts are set up for management and special management is carried out.
(3) In the financial system, a feasible reconciliation system should be established. Under the influence of unexpected events, enterprises should regularly check accounts receivable according to factors such as business volume and time, and it is necessary to check them every day. In special circumstances, they should be signed by both parties as an effective basis for reconciliation; If errors are found, they should be handled in time.
(4) credit management of accounts receivable should be carried out. Enterprises should set up customer service centers or similar institutions, which are mainly responsible for evaluating customers' credit, analyzing each customer, distinguishing the credit differences of different customers, reasonably determining the credit sales amount and credit sales period of each customer in combination with product market share, market demand situation and trend changes, taking into account the impact of emergencies, with sales personnel responsible for promoting products, special collection department responsible for the recovery of payment, and formulating corresponding assessment methods, and the financial department of the unit supervising the recovery of payment, so as to achieve the following goals.
3. Inventory management in special period
Under the influence of unexpected events, especially in the case of meeting the needs of emergency production, inventory costs should be reduced as much as possible, and appropriate inventory pricing methods should be adopted according to different situations to minimize the impact of adverse factors. Know the real-time information of inventory at any time, and analyze the market demand accordingly to ensure that the inventory materials can meet the needs of production and operation without shortage.
(1) Strengthen the management of key inventories necessary for production and operation, grasp the ratio of the current inventory of each inventory to the control limit in real time, and judge whether the current inventory exceeds the limit.
(2) If necessary, clear some inventory goods in time, and don't let this part of inventory goods occupy too much money. Only by thoroughly activating the funds deposited on the inventory goods can enterprises reduce the inventory cost and tide over the difficulties.
iv. investment management under unexpected events
unexpected events may bring about a sharp increase in sales, a shortage of products, a large inflow of cash, a substantial decrease in accounts receivable and a good financial situation. At this time, faced with opportunities, it is necessary to further expand production and increase production equipment, personnel, workshops and other resources. At this time, risks will follow. Under the influence of emergencies, market investment is in an uncertain state, and how enterprises should invest in order to obtain benefits is a financial problem. At this time, the investment problem should be carried out according to the investment operation procedures.
(1) analyze the current environment, situation, the duration of emergencies, the size of investment risks, and consider the tolerance of enterprises to establish investment objectives.
(2) considering the technology, manpower, economy and other factors of the enterprise under the condition of clear objectives, several alternative schemes are put forward.
(3) By collecting relevant information, analyze and evaluate the proposed alternatives, and give full consideration to the influence of its definite factors and uncertain factors.
(4) Choose an optimal scheme that is in line with the current and future situation from the alternatives. Under the influence of market uncertainties, we must understand, balance and limit all aspects of risks, and provide various investment plans to decision-making leaders in detail.
due to the uncertainty of the impact period of unexpected events, in the process of implementing the investment plan, it is necessary to adjust and revise the investment plan in time according to market changes, instead of blindly and rigidly implementing it.
v. coordination of financial relations under emergencies
the occurrence of emergencies often causes financial relations to be tense, which is determined by the social attributes of financial relations. In a calm time, seemingly harmonious financial relations often become tense at this time, which is also in line with market rules. Because the parties concerned play different roles, they always try their best to safeguard their own interests, and it is inevitable that they will appear more naked at this moment. For example, Murdoch is a world-famous newspaper magnate. When he was founded, his debts spread all over the world, with 146 creditors and debts of $2.4 billion. However, in 1991, Murdoch borrowed $11 million from a bank in Pittsburgh, USA. At first, Murdoch thought that this short-term loan could be converted into a long-term interest payment and the loan term could be extended, so he did not take precautions against bank dunning when it expired. However, due to the rumors, the bank thought that Murdoch's ability to pay was not good, and told Murdoch to pay the principal and interest in full when it expired. Murdoch enjoys the privilege of short-term financing in the Australian capital market, with a term of one week to one month, and the full amount can be as high as hundreds of millions of dollars. However, due to the withdrawal of funds invested by major Japanese banks in the Australian capital market, their positions were tightened and they could not get loans. So Murdoch returned to America. But at this time, American bankers refused. Commercial credit will determine the life and death of an enterprise. If this $11 million cannot be repaid at maturity, it will cause a domino effect. By then, 145 banks will collect debts at the same time, and the newspaper kingdom will be finished. Murdoch found his largest creditor, Citibank, which invested as much as $1.4 billion. Obviously, if it is liquidated, it will suffer the most. Finally, Citibank took the lead in putting pressure on the small bank in Pittsburgh to renew the loan at maturity and not to recover it. Murdoch had enough time to adjust and improve the newspaper group's ability to pay, and finally got out of trouble.
in case of emergency, you should sort out your financial relationship as soon as possible, and make clear your relationship with creditors, shareholders and investment.