What are the four goals of enterprise financial management?

When it comes to goals, we always think of Emerson’s famous saying: the world will give way to people who know where they are going. It’s more like a mantra full of inspiration and a little chicken blood, but it’s full of too much unknown magic undeniably. Life is like this, so is business management! Do you remember the small goal of one hundred million yuan that Lao Wang said next door? For individuals, it really needs extraordinary wisdom and talent to earn 100 million yuan, but for large enterprises like Wanda, it’s just a small goal. It can be seen that no matter how big or small an enterprise is, its goals must be clear and more digital, so what are the four goals of enterprise financial management?

Make it 100 million, 10 million, or 1 million? The four goals of enterprise financial management are far more than that. We need to realize the four maximums. We need to pay attention not to the four modernizations, but to emphasize once more that they are the maximums. What maximizes? Maximize benefits? A little bit right. Profit maximization, shareholder wealth maximization, enterprise value maximization and stakeholder wealth maximization are the positive solutions.

Why do you suddenly feel like you’ve finished talking at one breath? In fact, it is not. The four goals have their own emphases, but they are unified. Therefore, regardless of the size of the enterprise, the maximization of interests, wealth, value, and stakeholders is the goal of the enterprise.

Enterprises like to mention the upgrading of corporate profitability, that is, the first enterprise financial management target profit maximization. It’s very important to maximize profits so as to continuously accumulate snowballs to meet the current investment future! What is shareholder wealth maximization? The ultimate goal of a partnership is to make money, not lose money. What else? Right. Of course, it seems that this formulation is more suitable for listed companies. Ordinary small business shareholders may be a few, simple. Next is the maximization of enterprise value, which means to fully optimize the allocation of various resources and give full play to the maximized value of the enterprise. Of course, we should not only take the short-term interests into account, but also put the long-term, stable development and sustainable profitability of the enterprise in the first place. Finally, is there something about the pattern and win-win thinking to maximize the stakeholders? It means not only the supply chain, partners and partners in the value chain, but also the unity of economic and social benefits of enterprises.

Is that really the end? What is right is that knowing is easy and doing is difficult! Is it easy to achieve the four goals of enterprise financial management? Of course, it is not easy, it needs to meet a lot of conditions, especially in the era of digital economy to realize all-round maximization of profits, shareholder wealth, enterprise value and stakeholder wealth. It is necessary to have advanced enterprise management ideas, as well as software and hardware systems to support the flexibility of enterprise financial management. ERP / cloud ERP has become an important means of financial management and integration of enterprise management. For example, the common SAP ERP can not only realize advanced enterprise financial management through the enterprise financial management suite, but also optimize the major links of enterprise management, integrate the information island, and connect the internal process of the enterprise. It helps enterprises to transform from financial management to enterprise management in an all-round digital way, and the results are greatly favored by large and medium-sized enterprises.

As the idealist 2025 wrote, the future is not something that is supposed to be realized, but created in the interwoven change of demand and expectation. What is the future that the enterprise hopes for? What is the goal of enterprise financial management? Around the four goals, digitalization has become the key factor to achieve the management of enterprises from macro to micro details. All roads lead to Rome. How do you achieve the four goals of corporate financial management? For a more comprehensive understanding, consult acloudear — SAP gold partner.

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

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