Improve Financial Management And Increase Profits

(1) the definition of financial management. Financial management is the management of assets purchase (investment), capital accommodation (financing) and cash flow (working capital) in operation and profit distribution under certain overall objectives.

Financial management is an integral part of enterprise management. It is an economic management activity to organize financial activities and handle financial relations according to financial regulations and regulations in accordance with the principles of financial management.

To put it simply, financial management is an economic management work to organize enterprise's financial activities and handle financial relations.

(two) the contents of financial management, and financial management is divided into

,

Working capital management and profit distribution management.

1. It covers a wide range.

First of all, within the enterprise, financial management activities involve various links such as production, supply and sales. There is no connection between various departments and funds.

Each department also receives financial guidance, and is supervised and restrained by the financial management department.

At the same time, the financial management department itself provides timely, accurate, complete and continuous basic information for enterprise production management, marketing management, quality management, human resource management and other activities.

Secondly, the financial management of modern enterprises also involves various external relations.

Under the condition of market economy, enterprises are closely related to various stakeholders in the process of financing, investing and income distribution in the market.

It mainly includes: between the enterprise and its shareholders, between the enterprise and its creditors, between the enterprise and the government, between the enterprise and the financial institution, between the enterprise and its suppliers, between the enterprise and its customers, between the enterprise and its employees, and between the enterprises and its employees.

2, comprehensive.

Enterprise management under the modern enterprise system is a complex system composed of production management, marketing management, quality management, technology management, equipment management, personnel management, financial management, material management, and many other subsystems.

Admittedly, other management is from a certain aspect and mostly adopts the method of physical measurement. It can organize, coordinate and control a certain part of an enterprise's production and operation activities. The resulting management effect can only play a restrictive role in the production and operation of enterprises, and can not carry out the management of the operation of the entire enterprise.

Financial management is different. As a kind of value management, it includes fund-raising management, investment management, rights and interests distribution management, cost management and so on. This is a comprehensive economic management activity.

Because of value management, financial management can reflect the operation of goods and materials in a timely and comprehensive way through the receipt and payment of funds and the value form of flow, and can manage commodities through value management.

That is to say, financial management is permeated in all business activities, involving every link of production, supply and sale, and all elements of people, wealth and material. Therefore, we should grasp the internal management of enterprises, take financial management as a breakthrough point, and coordinate, promote and control the production and operation activities of enterprises through value management.

3, high sensitivity.

Under the modern enterprise system, enterprises become market-oriented independent legal entity and market competition main body.

The goal of business management is to maximize economic benefits. This is determined by the requirements of modern enterprise system for the value added of input capital, and is also the fundamental requirement of socialist modernization.

Because, in order to survive, enterprises must be able to repay debts and pay debts at maturity.

Enterprises must expand their income if they want to develop.

The increase of income means that the increase of people, wealth and property will be fully reflected in the form of capital flow in the form of corporate finance and will have a significant impact on the completion of financial indicators.

Therefore, financial management is the foundation of all management and the center of management.

To grasp financial management is to catch the nose of enterprise management and management is implemented.