Importance Of Financial Management In Enterprises

Financial management is an economic management work that organizes capital movements and handles financial relations with other related parties.

It is a kind of value management that permeates and runs through all economic activities of enterprises.

The collection, use and distribution of funds, and all business activities involving funds, belong to the scope of financial management.

Every link of production, operation, purchase, sale, adjustment and storage can not be separated from the reflection and regulation of finance. The economic accounting and financial supervision of enterprises are also effective checks and checks on the economic activities of enterprises.

Financial management is the common foundation of all management activities, and its central position in enterprise management is an objective requirement.

With the gradual establishment of the socialist market economic system, accounting work is playing an increasingly important role in the management of enterprises.

We must persist in grasping production and development and grasping financial management at the same time. We must not only benefit from production, but also benefit from management, and management is also productive force.

Financial management is closely related to economic benefits.

Enterprise

It is around how to achieve maximum economic benefits with smaller consumption. Strengthening financial management can promote enterprises to tap potentials, control costs and reduce consumption. Through the mobilization of funds, joint efforts should be made to use funds to improve the use of funds and prevent the waste of funds; through survival management, we can optimize inventory structure, reduce inventory backlog and achieve economic inventory; by pulling prices, we can increase the income of enterprises; through the management of state-owned assets, we can promote the rational and effective use of state assets and achieve state ownership.

Value preservation and appreciation.

Therefore, giving full play to the leading role of financial management can improve economic efficiency more effectively.

An important function of financial accounting is to reflect enterprises.

The situation provides a complete and economic information mainly for financial management of enterprises.

The accounting information of enterprises is not only the need of internal management of enterprises, but also the needs of decision-makers outside the enterprise, because enterprises are not isolated in existence, it is bound to have a variety of contacts with the outside world, for information exchange, such as national macroeconomic management departments, external investors, creditors, etc., all need to make use of accounting information to make relevant economic decisions.

Through accounting, the raw data are collected, pmitted, classified, registered, summarized, summarized, stored, processed into useful economic management information; then financial analysis is carried out to evaluate and analyze the process and results of financial activities of enterprises, and the future financial activities and their results are predicted and tested.

Through this series of financial management links, enterprises can provide accurate and real information to the outside world, thus contributing to national macro regulation and control, so that investors can make reasonable investments. Banks make credit decisions and tax authorities levy taxes according to law.