What are the main links of enterprise financial management?

Technological progress, business transformation and financial field are also undergoing subversive changes: efficient operation, cooperation with business departments, cost reduction and efficiency increase, as well as bringing strategic value to business are all irreversible trends given to enterprise financial management in this era. It is also an important reason for the management pressure of CFO and financial team to multiply! When the times and management have changed fundamentally, can sticking to the past thinking and experience stabilize the core competitiveness of enterprises? The answer is No. Nowadays, the financial management of enterprises needs to think about and recognize the links that can create value. Based on this, we might as well sort out the main links of enterprise financial management.

Having a clear understanding of the links is equivalent to combing through the backbone of enterprise financial management. Generally speaking, financial management mainly includes five links: financial forecast, financial decision-making, financial budget, financial control and financial analysis. However, some enterprises have extended the financial management link and added the final inspection / review link, which is very necessary in the view of small editors. The purpose of the review is to find out the problems of financial management at this stage, so that the financial management can truly achieve excellent operation and manage the money of the enterprise.

Then, we might as well follow these six links to have a deep understanding of enterprise financial management. Financial forecast – Financial Decision – financial plan / budget – financial control – financial analysis – financial review.

As the ancients said, if we do not advance, we will abandon it. The same is true for financial management, which can’t be decided by beating one’s head. It needs to make scientific prediction, which is the premise of all major links of financial management of an enterprise. Once it’s predicted that it’s feasible, then it’s time to make a decision. Once it’s decided that all good and bad things should be borne, financial decision-making is the core link. When it’s decided that it’s just decided to do this, then it’s necessary Planning, how to do it, needs to use scientific and technological means and mathematical methods. Generally, modern enterprise financial plans are carried out in similar SAP financial management software, and they can only be implemented after being approved. As long as they are approved, they can directly enter the implementation stage, then they are not good for implementation? Of course not. To ensure the realization of the ultimate goal of a project or event, it is necessary to control the whole process of production and operation activities, calculate and audit the income, expenditure, occupation and consumption of funds on the basis of planned tasks and quotas, so as to achieve the planned indicators and improve economic benefits; in fact, the control process is only a means, but also needs to be analyzed with data It can reflect the whole picture of production and operation activities, so financial analysis is essential. Of course, this is also the basis for the management to make decisions. Finally, after a cycle of production and operation is completed, will it be finished and continue to the next round? Of course not. Strict financial management of enterprises needs to be reviewed, which is not only the cost, but also the rationality, legality and effectiveness of economic activities and financial revenues and expenditures of enterprises.

How do you do? In this circle, you are basically impressed with the 5-6 links of enterprise financial management. Don’t think it’s all like the financial staff in the 1990s, the paper version of the statements, all done by hand. With the progress of the times and the innovation of technology, it has long entered the era of digitalization and automation. The integrated financial system of enterprise financial management software and enterprise management ERP software can help enterprise financial management to improve efficiency, standardize processes and links, and automatically quantify the flow and use of internal funds in real time, so as to ensure the reasonable distribution and operation of funds Use. For example, the sap financial management software or suite we mentioned earlier.

Finally, the financial management of an enterprise mainly includes six links: financial forecast, financial decision-making, financial budget, financial control, financial analysis and financial review. To achieve excellent financial management, on the one hand, we need to understand the details of each link, on the other hand, we need to use modern advanced technology software.

For a more comprehensive understanding, consult the acloudear — SAP partner.

This article "What are the main links of enterprise financial management?" by AcloudEAR. We focus on business applications such as cloud ERP.

Scanning QR code for more information