Study on effective financial management methods

1. Common method of corporate financial management

1.1 scientific methods of corporate financial decisions

Enterprise financial management staff financial decisions in the premise and foundation to achieve the overall goal of the financial, scientific analysis of the system from a number of alternative financial program of activities which select the best plan. The decision-making process from the following aspects: First, according to the information of the financial projections found after analysis and their supervisors Second, compare the advantages and disadvantages of the various options, again, combined with the actual situation of the enterprise and has many of the characteristics of the project selection criteria for selection; Finally, according to the selection of the intended merit-based criteria to determine the best solution in the actual process of discovery and scientific decision-making methods, In this paper, the author of lessons learned in the process of practice, listed below. several methods.

1.1.1 The preferred method of contrast

The basic financial decisions is the preferred method contrast it mainly refers to the eleven incomparable way through the arrangement of the various options together, how good or bad according to its economic benefits, the final preferred to produce the scientific decision-making. the standard by which the process is dynamic, different projects, different programs, the standard of comparison is also different. For example, the total amount of contrast, the difference between the amount of contrast and comparison between the way. Addition, we would also like to be compared against the total annual income of the different programs, total costs and total profits. Differential contrast is the relationship between the revenue difference and the difference of the expected costs of different programs for further comparison. by calculating the relationship between the profit of the two differential, select the best solution. index comparison means is done by comparing various program between economic efficiency indicators, such as the program's net present value, internal rate of return, payback period, rate of return through a series of comparison ultimately determine the best solution.

1.1.2 Mathematical differential method

Decision-making process for the optimal capital structure for financial decision-making, a decision-making method the mathematical differential method is also very important, usually have played, in addition to inventory economic batch and the amount of cash held by the decision-making activities a crucial role in the actual work process which, if we consider the cost as the only criteria, generally need only seek the minimum However, based on the profit for the evaluation of indicators need requirements to the maximum value of the program This method of analysis based on the boundary curve contact extremal problem further solving is frequently mentioned mathematical calculus, which is to help us to scientific decision-making of a preferred method.

1.1.3 linear programming method

According to the basic principles of operations research, linear programming is the comparison and analysis of a series with a linear relationship between the extreme values ​​of the indicators and parameters solving method, it can help us to quickly find the best program under the constraints of the existing conditions, the linear programming method can effectively help enterprise managers further combined with the actual configuration optimization of human resources, material resources and financial resources, which is a very important financial decision-making method .

1.1.4 probabilistic decision method

Probabilistic decision method is mainly used for risk decision-making process, despite the financial risks faced by the enterprises with uncertainty and uncontrollability, but we can forecast the probability of the risk occurring in the future based on past data this decision-making method is mainly expectations of the various options is calculated by calculating the probability of its occurrence and the decision diagram further said, the by vivid contrast analysis, it is possible to make the best decisions at a glance.

1.1.5 profit and loss decision-making method

Profit and loss decisions are primarily a series of decision-making method is uncertain. Uncertainty about the future, only through an objective assessment of the relevant factors to predict the probability of its occurrence, however, it is impossible to be obtained by calculation science of financial decision-making in this case to be very difficult. among the working process in the past, when faced with such a situation, when often primarily based on the decision management personnel past work experience, attitude held principle, in certain decision-making method of auxiliary profit and loss decision method including: small take Dafa, minimax the Dafa and minimax small law. been called pessimistic decision taken Dafa small, mainly referring to find their minimum revenue value by way comparable to the programs which the process of making financial decisions, and to choose between these minimum revenue value gains value. the minimax Dafa and the image is known as optimistic about the decision-making method or risky decision-making method, it mainly refers to them in the decision-making process to identify the maximum benefit of the net present value of the various options, and select the optimal program the minimax small law is also known as the smallest regret value method is in the process of decision-making behavior after comparing the programs which the maximum regret value, that is, the difference between the maximum income value the program gains value taken, and finally select the minimum value in all programs as optimal solution.

1.2 Financial control

Financial control is taken by us during the process of enterprise financial management activities which specific means and methods to influence and regulate the day-to-day production operations and financial activities, and further ensure that the financial overall objective comparison of science and regulation and the realization of the tasks. summary, these measures taken are used, in which the actual work process to ensure smooth conduct and financial goals in order to maximize the financial control methods are mainly the following.

1.2.1 Protective control

People usually vividly protective control called exclude interference, which is the most thorough financial control methods, and its premise is a series of standards and the system before carrying out financial activities specified purpose of doing so is In order to be able to effectively protect the security and integrity of the cash, as much as possible to eliminate one of the differences to ensure that daily cash within the normal scope of protection of corporate production and business activities at the same time, internal containment system should pre- making a good, doing so is conducive to us to strengthen the supervision and control of the management of the objects to be controlled, but also with the actual situation of the expenses standard provisions, the only way to maximize savings necessary expenses.

1.2.2 feedforward control

Feedforward control, also known as the compensation for interference control, reasonable supervision and control means that the process of the actual operating system, which, by means of scientific prediction method on the premise and foundation, deviations may occur to take range of control strategies to maximize the elimination of differences, thereby enabling corporate financial behavior in particular to ensure the short-term ability to repay within the control range, sustained attention and supervision of the current assets of the enterprise within the control range. detailed and rigorous analysis, and trends in these proportions and the proportion of current liabilities and circumstances, and ultimately make a scientific forecast If it is found that the rate of change in the irrational, a series of strategies and measures need to be taken to amendments and adjustments to ensure that they are at a reasonable level above sum to compensate for interference is a very effective method of control and supervision, but it needs to be built on the premise and foundation to have a lot of data and accurate forecasts the only way to effectively achieve the goals and tasks of the compensation interference.

1.2.3 Feedback Control

For the financial control of the enterprise, in the course of the day-to-day work of the most commonly used method is the feedback control law, which is an effective control method for a balanced deviation, our actual operating conditions and characteristics of the scientific system analysis to identify differences between the actual situation and plan its specific reasons for adjustments and amendments subsequently adopted a series of effective measures to further reform of the financial activities, eliminating its Planning and Finance differences between the activities recorded accumulated experience to avoid the occurrence of similar situations in the future. the balance deviation deviation in the balance the actual activities of the process which is, perhaps, in the entire activities during the course of which may appear new deviation, but from the overall point of view, the impact of our work is not great balance deviation in the actual operation of the process is relatively simple and does not require too much information and data, can also, depending on the circumstances, appropriate adjustments .

1.3 Financial Analysis

The financial analysis is based on enterprise information data over the years, to take certain further analysis and evaluation of the results of the financial activities through this way to the financial indicators completion and activity patterns a general understanding and awareness, this is conducive to scientific financial forecasting, decision-making and control, and improve the overall management level and economic benefits have a good role in promoting and facilitating For financial analysis, the most important is also the most commonly used method is a comprehensive analysis, that is, we are the factors that will affect corporate financial indicators orderly arranged, on the basis of comprehensive analysis of the company's financial position and operating activities systemic If you rely solely on the evaluation of a single indicator to determine, is not a comprehensive evaluation of the enterprise's financial position and future trends, and only after a comprehensive and systematic analysis, to make the results more scientific and comprehensive a commonly used method of analysis is the main financial ratio analysis, factor analysis, DuPont analysis. integrated analysis is a very important line of enterprise financial management work, it is comprehensive, system, a comprehensive evaluation of the financial position of the enterprise to effectively enhance The quality of their work.

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2. How to strengthen financial management to enhance the competitiveness of enterprises

2.1 continue to deepen the centralized financial management work

Corporate finance centralized management is an important strategy in the entire financial system reform and management of the process. Centralized financial management system, will help improve our overall efficiency, effectively saving the cost of capital for improved return on investment from to a good role in promoting corporate financial management work of further in-depth and strengthen, speed up the construction of information systems to effectively enhance the management level of an important way and means. establishment of information-based financial management system, there is conducive to enterprise information data collection of accuracy, timeliness and comprehensiveness, but also conducive to the further optimization of enterprise management, reduce costs.

2.2 the development of scientific and practical financial management system

Found in the actual process of effective management tools on the financial activities of the enterprise is the management by objectives management by objectives is a state-of-the-art modern incentive system and effective financial management. Therefore combined with the actual situation define a clear business development goals and operating characteristics, enterprise financial management activities are closely around the goal to achieve and carry out, it is a fundamental starting point of the entire enterprise financial activities, our guide to action, we need to around the goal of financial management, to take a series of measures to help us successfully achieve appraisal objectives It is not difficult to determine the correct financial goals is essential for the actual operation, the enterprise financial management formulation of objectives must be tightly Contact China's specific national conditions and economic laws to carry out, the only way, the enterprise financial management objectives can be effectively achieved, is conducive to the improvement of the economic efficiency of enterprises, enhance the competitive strength of the enterprise as a whole.

2.3 efforts to establish a system of internal audit oversight

To prevent errors and corruption in the process of accounting work to strengthen the pre-approval of the economic business, economic and business to handle the process of audit and accounting audit work afterwards. Addition to the advance audit and analysis of economic business whether it is reasonable, legitimate, no matter in violation of national laws and regulations and relevant policies, whether through the system after a comprehensive analysis to evaluate the economic business but also in the process of business process audit and supervision of all the formalities are complete for the certificate matches the specific job requirements, its contents are correct and effective, and whether it can be handled within the authorized range. economy has handled the end of the business, the audit also increase afterwards auditing efforts to ensure the certificate is true and complete, and handle properly if it is found necessary and timely adjustments and amendments. the accounting audit also strict examination and supervision of accounting documents, accounting books and statements audit.

2.4 improve procurement management

Procurement must sign a contract with the supplier, at the same time you want to contract submitted to the finance department for verification when the procurement of goods to reach the company's purchasing department must promptly notify the warehouse, and the warehouse you need related matters and specific requirements of the procurement contract with whether the delivery person to check the name of the supplies, model number is consistent with the contents of the contract provisions, and the writing of the storage of materials proof copy handed over to the financial sector, and handed over to the purchasing department, together with a copy of the supplier delivery note. procurement The Payment To implement the payment voucher system. Encounter require cash payment, you will need to be completed by the purchasing department vouchers payable after the audit of the financial manager, chief financial officer and president to be carried out by right of approval. Has confirmed that the liability should be timely payment, the only way to ensure that in accordance with the provisions of get cash discount profits, strengthen communication and contact with suppliers, maintenance enterprises in the industry credit finance department should be in accordance with the accounts payable ledger and subsidiary ledgers monthly billing, and tight audit once abnormal case, you need to prepare the appropriate adjustment table further adjustments and amendments to the financial sector also need to obtain from the supplier of each month in late statements Correspondingly schedule payables breakdown and the unpaid Schedule 11 comparison further to find out the reason for the abnormal situation.

3. Summary

In this paper, a summary of the experience of the author in practice, the process, launched a study on effective financial management enterprise first introduced the commonly used method in the process of corporate financial management, financial decision-making, financial control, financial analysis methods Introduction, strengthen enterprise financial management recommendations put forward on this basis.


[1] Chen Weiyun Underperformance empirical research on the capital structure of the financial impact factors [J]. Theory and Practice of Finance and Economics, 2002 (1.

[2] XU Yongqiang, Stated. Listed company in Hunan Province capital structure empirical analysis [J]. Hunan University: Social Sciences, 2001 (z1.

[3] Chen Hsin-yuan, Zhu Hongjun China's listed companies consolidated accounting statements of the status of preparation [J]. Accounting Research, 1999 (8.

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