On the management accounting in the financial management of SMEs in the use of

Paper Keywords: Management Accounting Financial Management for SMEs

Abstract: The accounting management accounting as a new branch in China started late. As China's socialist market economic system, the gradual improvement of management accounting as a business to improve efficiency, an important means to increase revenue, more and more medium-sized enterprises ages and the use of the SME is in our national economy the most dynamic economic agents, especially in the current, to ensure appropriate economic growth to ease employment pressure, optimizing the economic structure, etc., are playing an increasingly important role, but utilization in the management accounting comparatively underdeveloped. In this paper, SMEs in the financial management problems, proposed the use of management accounting in SME specific recommendations.
SMEs are now promoting the economic development of China has become an important force, with the increasingly competitive domestic and foreign markets, small and medium enterprises in their management, especially in financial management is becoming increasingly apparent, so explore the small and medium enterprises in financial management problems and gives a proper solution for small and medium enterprises development.

A need to strengthen financial management of SMEs

1.1 through effective financial management, operations can detect problems in time to take strong measures to correct, and thus improve the enterprise's internal management system

1.2 Effective financial management will help reduce financing costs

Financing of the enterprise to successfully carry out production and business activities play an important role in many channels of corporate financing, how to choose the right sources of funding, reduce funding costs, and financial management are closely related to good or bad.

1.3 Effective financial management will help improve the business investment rate of return

Financial management in the investment decision-making and implementation phases play a great role, decision-making phase of financial management can help to find good investment projects; the implementation phase can be implemented to improve financial management, effective supervision, to ensure that the expected investment return can be achieved.

2 status of financial management for SMEs

2.1 Financial management consciousness

Most of the operators of small and medium enterprises are not proficient in financial management, investment decisions are often subjective judgments for lack of financial concepts and many SME's technical department and sales department is often higher than the Finance Ministry building, ignoring the financial management in business management in the core position.

2.2 financial systems
SMEs, mostly family-owned business, not set sound financial management organization, there is no internal control system, the lack of production and business activities in financial management and accounting supervision necessary, the system is not sound financial management will certainly want to cause confusion, which inevitably for future business development and growth to stay hidden.

2.3 Financial management is generally not high quality

China's small and medium enterprises, the financial staff in the appointment of widespread nepotism, financial officers is not a close relative of the leadership of friends, many of them have not received formal training in financial knowledge, only a simple financial records and funds collected. Finance staff low quality, will inevitably lead to confusion in financial management.

2.4 accounting information, corporate finance problems

Financing channels for SMEs than three: First, borrowing friends for the initial start-up stage; two loans from banks; third to capital market financing. SMEs in the financial management of many problems, so that financial information provided to the community is difficult to convince people, which makes the financing channels for SMEs from banks has been largely restricted to capital market financing is non-existent, capital shortage to a certain stage of development of SMEs generally face significant challenges, largely restricting further development and growth of SMEs.

3 Management accounting in SMEs in the use of methods and perspectives

Accounting management accounting is a new branch, the current widely used method of SMEs in China and the view is as follows.

3.1 Costing

The method is cost occurs for economic reasons (expressed as a specific economic activity or jobs) to understand the costs of production costs through the operation to confirm, and then confirm their consumption of products based on the job, enabling the measurement of operating costs for the center the target.

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3.2 Target costing

The method is based on the same industry or competitive price as the upper limit of the price of new products; according to the expected sales volume to determine profit targets; to the expected competitive price minus target profit, to determine the target products costs; use of 'built into the cost' mentality, while output in the finished product will be cost, 'built into the.' new product target cost is established, it should be for future production, sales, service and other sectors to develop their own related to the target cost, target cost for each department should assume responsibility.

3.3 permanent foster a corporate culture

As we all know, the modern business goal is to maximize the value of ideas based on modern enterprise management, enterprise value, including three aspects: First, the value of human assets, including staff security and development needs to meet and make the best work; the second is the value of production, performance for quality, service and productivity high; third is the financial value through sales, expenses, market share, shareholders' equity, stock price performance. enterprises to increase the value and production value of the outstanding performance will be the financial value of natural returns the value of business to pursue, must resort to an effective value of the measurement system, this system is the management accounting. Youcikejian, companies realize the value without the value of management accounting, while maximizing the value, depends on a shape corresponding corporate culture, the depth values ??of all the staff of the heart. To this end, SMEs need to focus on nurturing corporate culture.

4 Management Accounting in the use of financial management for SMEs

4.1 the concept of management accounting methods and requirements in establishing a modern enterprise system

SMEs to establish a modern enterprise system, the separation of ownership and management, enhance the level of financial management, financial management staff to put the status of managers in the financial personnel appointments, and to foster the introduction, selection of high-quality personnel, the courage to let people outside the family as a financial management positions, not cronyism.

4.2 Management accounting advocated by the activity-based costing and target costing have their own characteristics and advantages, SMEs should be applied flexibly according to their specific circumstances
If the emphasis on product pre-production stages (especially the product design stage) goal-setting and implementation of the impact on the target cost method should be used; occur if economic reasons from a cost perspective of cost, should adopt the goal of cost by improving operational efficiency and reduce unnecessary and inefficient operations to achieve lower costs.

4.3 SMEs to financial accounting basis to broaden the management accounting information required, sources of information

SMEs in the application of management accounting, the financial accounting should be based on efforts to broaden the management accounting information required, information sources, standards of financial accounting information, financial and accounting information to ensure real and effective, so that the information provided to financial accounting directly applied to management accounting for small and medium investment and financing activities to create a good atmosphere.

4.4 computerized accounting

Computer prediction in the management of accounting, decision-making, planning, control play an important role in the development of management accounting is an essential technology base and gradually establish inventory management, financial analysis, resource allocation and the amount of profit forecasts and other computer software systems, small and medium enterprises in the fierce market competition, survival and development.

As our system of management accounting theory and practice have to be perfect, small and medium enterprises of their own weaknesses so that management accounting is difficult to be applied as soon as possible, so the relevant government departments should help SME management accounting, business management to improve the overall level of SME rapid, healthy and coordinated development.


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