The importance of company financial management

Is financial management important? Anyone who dares to ask like this, if not with the global financial staff, is not taking boss / investor funds seriously. The reason is very simple. It’s just like a family. If no one manages it, how much is the monthly income, how much is the expenditure, where the money is spent, whether the wife is watching the live broadcast every day, whether the children are playing games to recharge, all kinds of consumption, all kinds of investment and all kinds of break through. Finally, it’s only when the debt crisis breaks out that they suddenly realize that they may have been in trouble I’m in prison. Do you think financial management is not important? In fact, the financial management of a company is more extensive, complex and of greater magnitude than that of a family. This is the result of poor financial management. In that case, let’s talk about the importance of financial management.

In short, financial management is an economic management work of organizing financial activities and dealing with financial relations. The importance of company’s financial management can be summed up in five aspects: the foundation and center of enterprise management; from paying attention to production management to financial management, enterprise management will become mature; financial management is the bridge to realize enterprise and external communication; financial management is the center of enterprise management and capital management; strengthening financial management can find the root of enterprise problems Source, find a solution.

These five points seem to be relatively simple, right? It’s easy to know and difficult to do. Only in practice can we know that financial management is not so simple. Actually speaking about the importance of financial management from a small point of view, it can be divided into three main points: improving the utilization rate of enterprise funds, helping enterprises to raise funds, helping enterprises to make reasonable investment, each of which is related to money.

Why do you say that? Every link of production, operation, purchase, sale, adjustment and storage of an enterprise is inseparable from the financial reflection and regulation. The economic accounting and financial supervision of an enterprise are even more effective constraints and checks on its economic activities. The central goal of an enterprise is to achieve the greatest economic benefit with a small consumption, and the value of financial management is right here.

Through the accounting of financial management, collect, transfer, classify, register, summarize, store the original data, and process it into useful economic management information; then carry out financial analysis, evaluate and analyze the process and results of enterprise financial activities, and predict and test the future financial activities and results. Capital is the “blood” of an enterprise. If the blood circulation is smooth, it is self-evident for an enterprise how much such harm there is. Because improving the operating efficiency of funds is always the first task of financial management. In fact, financial management, through the collection of real-time data, for the analysis of capital data in operation, is to provide enterprise managers with reference for improvement and optimization, and also become the basis for future decision-making.

Of course, all of these are now solved by digitization, such as the introduction of enterprise financial management software, or sap financial management system, through combing and combining with its own enterprise finance, to realize the comprehensive integration of enterprise finance and other links, transparently and real-time grasp of enterprise financial data, analysis, and provide reference for decision-making. Of course, it can also provide guidance for future innovation of enterprises.

What about? Is financial management important? Of course it’s important! In the near future, improve the operating efficiency of enterprise funds, in the far future, constantly optimize the enterprise and enhance the core competitiveness of the enterprise. Don’t underestimate the importance of financial management.

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

This article "The importance of company financial management" by AcloudEAR. We focus on business applications such as cloud ERP.

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