All things are one and two sides! Enterprise financial management is no exception. Because of this, there is a famous saying in the financial circle: half is an angel, half is a devil! In fact, enterprise financial management is a double-edged sword. If it is well used and properly managed, it can not only help enterprises to achieve healthy and efficient operation, but also help enterprises to prevent and control risks, and become a major player in upgrading the core competitiveness of enterprises. If it is not properly managed, it is easy to cause financial chaos, and it is easier for enterprises to breed big risks, even related to survival. So as the manager of enterprise finance, how to play the role of angel of enterprise and eliminate the evil of destroying enterprise? It has become an important mission for practitioners to fully perform the seven functions of enterprise financial management.
If you go to Baidu to send a: what are the seven functions of enterprise financial management? Many people will give you a bunch of textbook concepts, such as: accounting, accounting supervision, financial relations, monitoring assets, credit management, staff decision-making and performance appraisal. Is it? Of course, it’s all written by professors and experts. You can’t be wrong. But how do you read it? Because it’s not grounded.
In order to facilitate understanding, the editor will summarize it as follows: calculate accounts, manage money, sort out relationships, monitor assets, guard credit, act as a good consultant and handle performance. Does that sound easier to understand?
What’s a good account? Accounting records the business process, reflects the gain and loss of business and reports the results of business in a way of value. What is good money management? Cost? Of course, it is not only the cost, but also the monitoring of all funds of the enterprise. Some people compare capital to the blood of human body. If there is no, more, less, faster, slower, immobile, or ill, it is possible for an enterprise to die. So how important is it to manage money well? What are the relationships that need to be handled in order to manage relationships? There are not only internal departments, but also external suppliers, customers, banks, taxation, industry and commerce, and government departments that need to coordinate well. Monitoring assets is actually financial participation in enterprise asset management. Through the spot check and inventory of assets, we can see whether the accounts are consistent, whether the accounts are consistent and whether the accounts are consistent, so as to ensure the financial authenticity and the assets Safety and integrity; keeping good credit should have been one of the contents of financial management, but credit management is relatively complex and important. A bad debt often exceeds the annual profit of the enterprise. In order to control the occurrence of bad debts, the credit management and control among enterprises are paid more and more attention by the enterprise. As a good consultant, the enterprise finance will provide the decision-makers with the information from the perspective of management Enterprise production and operation, financing, investment plans, etc. provide good decision-making data, do a good job of consulting; calculate the performance, in terms of value measurement, the enterprise has no department more professional and comprehensive than the financial department, so the enterprise performance evaluation work can not do without the participation of the financial department, most of the calculation work in the performance evaluation becomes one of the financial responsibility work, decompose and calculate the performance of each department Efficiency is one of the seven things the finance department has to do.
Today, these seven financial management functions can be completed through the financial management suite under the integration of ERP software, from financial digital management to enterprise digital management. For example, many group enterprises use SAP ERP system, which includes financial management software suite solutions, to help enterprise financial managers easily realize financial visualization, cost control, performance calculation, asset monitoring, etc.
In short, as the financial center of enterprise management, no matter the size of the enterprise, one of the seven functions is indispensable. Whether a small number of large-scale enterprises have a clear division of functions in several aspects, or small enterprises give multiple functions to financial managers. The seven functions are the important responsibilities of the financial management of the enterprise, which should not be neglected. For a more comprehensive understanding, consult acloudear — SAP gold partner.
This article "Seven functions of enterprise financial management?" by AcloudEAR. We focus on business applications such as cloud ERP.
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