Analysis Of Seven Problems In Financial Management Of Small And Medium Sized Enterprises

　　 1, enterprises financing Difficulties and lack of funds.

Financing difficulties, financing difficulties and guarantee difficulties of SMEs in China are still restricting the development of SMEs. The difficulty of financing and guarantee of SMEs is still a prominent problem that restricts the development of small and medium-sized enterprises. 80% of the small and medium-sized enterprises in China have capital shortfalls. Loans, especially medium and long term loans, are hard to obtain. This restricts the development and growth of small and medium-sized enterprises. This is mainly due to the relatively limited financing channels. In the direct financing, the current management mechanism determines that SMEs can hardly win the opportunity of stock listing: on the issue of corporate bonds, it is difficult to get the small amount of issuing bonds: the limited funds and low credibility of SMEs themselves are difficult to meet the loan conditions of financial institutions such as banks. Therefore, the funds obtained by SMEs in the financial market are very incommensurate with their share in the people's economy, to a large extent, they depend only on their internal funds. This leads to serious shortage of funds for small and medium-sized enterprises.

　　 2. Investment ability Weak, backward investment concept and lack of scientific nature.

Small and medium enterprises pursue short-term goals. Because of their small size. The proportion of loan investment is much larger than that of large enterprises, and the risks are greater. Therefore, they always recover their investment as soon as possible, and rarely consider expanding their scale. Blindness in investment. The direction of investment is difficult to grasp. The contradiction between strong growth desire of small and medium-sized enterprises and lack of technological development, market expansion and lack of management ability determines that their larger financial management enterprises are lacking in stability and are often too hasty and blind. SMEs lack a clear direction of industrial development, lack of scientific proof of project investment. One sided pursuit of the "hot" industry, regardless of objective conditions and capabilities. At present, many small and medium-sized enterprises are in trouble. Even bankruptcy and bankruptcy are mostly caused by investment mistakes.

　 3, internal control is relatively weak.

The weak financial control of SMEs in China is mainly reflected in the fact that SMEs do not have enough cash management. The poor cash flow has greatly reduced the profits of enterprises; the accounts receivable turnover is slow, and the management level is not high. Without strict credit standards, a large number of accounts receivable have been precipitated, resulting in poor capital turnover and weak inventory control. Many small and medium enterprises lack effective management of inventory, no inventory plan, no inventory regular supervision and inspection system. The daily inventory control is not in place, resulting in inventory turnover failure.

　　 4, financial management objectives are not clear.

Many small and medium-sized enterprises only pay attention to the operation of debt and neglect the repayment of debts. They only pay attention to immediate interests and ignore long-term interests, but do everything possible to borrow money from financial institutions and buy materials from suppliers instead of performing contracts well. A loan that causes maturity can not be repaid. The materials payable cannot be paid on time. In advance, the payment could not be supplied on time, resulting in financial institutions no longer lending, and suppliers no longer sold credit to enterprises. The result was tight funds. Production is difficult to maintain.

　　 5. Resist risks The ability is weak.

With the intensification of market competition, many small and medium-sized enterprises have begun to consciously speed up technological transformation, equipment renewal and product development in order to improve their competitiveness. However, due to the lack of scientific and comprehensive analysis and demonstration, the result is investment failure. The failure of investment will lead to huge losses of enterprises, which will lead to debt repayment and even bankrupt enterprises. Many small and medium enterprises often invest by project managers, and the risk of investment has existed before the investment project has yet to be implemented.

　　 6, the quality of financial management personnel is not high, and management concepts are obsolete.

The typical management mode of small and medium-sized enterprises is the highly unified ownership and management rights. The investors of enterprises are also operators. This mode will inevitably bring negative effects to the financial management of enterprises. The phenomenon of enterprise leaders' centralization is serious, and the lack of proper understanding and Research on the theory and method of financial management makes their duties irrelevant. Ultra vires act causes financial management confusion, financial supervision is not strict, accounting information is distorted. The key financial personnel of an enterprise are often assumed by those who trust the decision-makers. Its own quality is very difficult for enterprise financial management. It makes the financial internal control system exist in name only. No or no internal audit department can be established. It is also difficult to ensure the independence of internal audit. Some enterprises fail to incorporate financial management into effective mechanism of enterprise management. Lack of modern financial management concept makes financial management lose its status and role in enterprise management.

　　 7, unfair distribution of SMEs. Lead to brain drain.

Small and medium-sized enterprises have poor continuity in their employment, especially small businesses. When they come to order, they will produce. In the off-season, employees will be on holiday, resulting in the loss of some skilled and capable talents. On the other hand, small and medium-sized enterprises invest less in social security. Some enterprises do not pay insurance premiums to their employees. Financial management is a continuous, stable, policy and technical work. People who lack sufficient understanding and long-term management experience are very difficult to do so. Some senior financial managers are unwilling to take root in small and medium-sized enterprises, resulting in inefficient management of SMEs' financial management. On the surface, it seems that people are floating. The reason is that the distribution links have not been done well. The decision makers of small and medium-sized enterprises must change their distribution concept and retain talents, so that the financial management of enterprises can get on the right track and make timely and effective decisions for business management.