How to control the company’s financial management?

Control? It sounds like a very powerful term, full of strength and force. The clothes hanger walking on Fashion Week – magic beans want to easily control the whole venue. In addition to the designer’s eye-catching fashion works, they also need their own good temperament. In fact, control is not only a hard core term, but also a symbol of soft power. Since it means controlling the financial management of the company, we are here to talk about this today.

The financial management of the company is related to the survival and development of the enterprise. Proper control can not only realize the efficient operation of funds, double the benefits, but also provide strong support for the future innovation of the enterprise. On the contrary, all kinds of financial management confusion and low control power are the beginning of the enterprise’s gradual decline or even death. For example, how can we avoid the tragic lessons of the 10 billion euro pamarat group? Out of control, or strictly control In this case, we might as well look for some solutions.

In fact, the most difficult company to control is not a start-up company or a stable company after collectivization, but a growing company with high growth. Regardless of the stage of enterprise development, how can we correctly view the financial management of the controlling company? Maybe the following six aspects will provide some reference for you.

Improve financial system, financial budget control, effective control over cash, control over assets and liabilities of enterprises, control over financial risks, and strengthen internal audit supervision system. From the content and links of enterprise financial management, it should be strictly controlled for each link. Let’s have a brief analysis.

A sound financial system is the premise of course. Without rules, there is no way to achieve success, and the financial system is not fixed. It needs to be optimized and improved according to the actual situation in the process of enterprise development to reflect the superiority of the system. Budget control is equal to comprehensively controlling the process of enterprise production and operation, focusing on the goal, simulating the process of operation through scientific methods, but These are not enough, after all, they are only reports rather than actual processes; next is cash flow, how to control cash flow? Two points: eliminate the cash circulation out of the account, include all the cash into the bank account system, in addition, centralized cash management is also needed; the next step is the balance of a pair of brothers in the game, assets and liabilities. When the business is doing well, high liabilities are to expand the scale and meet the rapid growth. Once the business is not so smooth affected by the market, the relationship between the two needs to be balanced, To avoid insolvency; of course, this is also a category of financial risk control; there is also a most important way, internal audit supervision, internal audit work institutionalized, standardized, regular, and need to be reviewed from time to time.

Well, I have a preliminary understanding of how to control the financial management of the company. In fact, these are just some methods. There is still a long way to go in the practice of modern enterprises. For example, more and more enterprises are using financial management software to achieve real-time control of financial management of the company, what business financial integration, what cloud ERP financial management system, which contains our common sap. In fact, the revolution of digital technology, through excellent financial management system, can achieve effective control and excellent operation of enterprise financial management.

If a successful enterprise does not know how to control its financial management. If we don’t know how to use advanced technology to optimize the company’s financial management, we will eventually be eliminated by the society. Corporate financial management is not only a theoretical problem, but also a practical problem with strong operability. Just like a dominoes of corporate management, once a piece falls down, it will inevitably lead to chain reaction. How to control the company’s financial management? For example, the establishment of a strict financial management system, the use of advanced technical means, of course, can not forget to start from the enterprise itself, in order to control the whole field of management.

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

This article "How to control the company’s financial management?" by AcloudEAR. We focus on business applications such as cloud ERP.

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