SME'S Financial Management Skills

At present, most of the small and medium-sized enterprises in China rely mainly on the accumulation of primitive capital by themselves. The phenomenon of "thin foundation" is very common, so the ability of SMEs to resist risks is relatively weak.

Many small and medium business owners often talk about "small business is not easy to do". In essence, it is difficult to control risks in a competitive environment.

Enterprise risks come from all sides, including competition risks from external markets, supply chain risks from internal product services, and operational risks from internal management of enterprises. Among them, financial risks, as one of the three foundations of enterprises, are related to the survival and death of enterprises.

However, the financial system of most small and medium-sized enterprises in China is not perfect, the quality of financial personnel is not high, and the family color of financial management is thicker, which virtually aggravates financial risks.

To reduce financial risks, the first step is to strengthen financial management.

Most of the small and medium sized business owners are not born in the financial sector. They mostly focus on products and market capabilities, and generally lack financial knowledge.

Especially in many small and medium-sized enterprises, the family management style of financial management is very strong. Financial accounting and management are also controlled by non professional personnel. The accounts are more chaotic, and financial management is far from being mentioned.

To carry out financial management, SMEs should first pform old and backward management mode, especially to change the prevalent family management mode.

Small and medium-sized enterprises should establish modern financial management concepts, fully realize that strengthening financial management is the requirement of the development of market economy, is the need for enterprises to adapt to economic globalization, and is also the guarantee for the sustainable development of SMEs.

Only by establishing a modern financial management concept can it be possible to formulate scientific financial management mode.

Under normal circumstances, a sound financial system should be equipped with a complete financial team. However, limited by scale, financial resources and talents, SMEs can not set up a sound financial system.

In addition, small and medium enterprises generally focus on the production and marketing of products, nor have they specialized.

Special departments and personnel to carry out financial management.

Under such circumstances, how should SMEs set up their own financial system? Through investigation, it has been found that in Beijing, nearly twenty thousand small and medium enterprises choose to cooperate with Beijing spring snow Accounting Service Co., Ltd. for a long time.

Bookkeeping business.

Reporters visited a number of small and medium-sized enterprises, and the relevant personnel of the enterprises told reporters respectively: "with the spring and snow accounting through signing agency bookkeeping cooperation agency bookkeeping business, not only can save a large number of costs for self built financial system, but also can get a complete and professional financial team service, so that we can concentrate on product production and marketing."

Relatively large enterprises, the ability to resist risks is relatively weak. On the one hand, they can reduce corporate risk through formal management, and can also choose to pfer financial risks.

For small and medium-sized enterprises, agency bookkeeping is a good way to pass on financial risks.

The reporter visited Beijing spring snow accounting on this issue, and the relevant responsible person said: "at present, many business owners who come into contact with spring snow accounting mostly choose to set up a staff with the function of cashier in the enterprise, then outsource the specific taxation work to the spring snow accounting, thus outsourcing both the workload and the risk to the accounting service company.

Because enterprises and accounting services company cooperation agency bookkeeping is a legal person status to sign a contract, most will agree to the relevant compensation clause, if the accounting company fault cause financial accident, all losses arising from the accounting company.

In this way, the risk that the enterprise has to bear will be greatly reduced. However, when choosing a bookkeeping partner, SMEs must choose a strong accounting firm with strong risk tolerance ability. Only such companies have the ability to resist risks for enterprises.

In order to further protect the financial safety of customers, spring snow accounting not only optimized the original set of complete bookkeeping security mechanism in 2013, but also raised 10 million cash as a guarantee for financial and tax risks, so as to escort the financial safety of customers.