Broadly speaking, enterprise financial management is the process of allocating enterprise assets; In a narrow sense, enterprise financing is the most effective use of idle funds to improve the overall rate of return on funds. Let's share with you some basic methods of corporate finance, hoping to help you!
Three aspects of enterprise financial management
Enterprise financial management includes three basic aspects: fund-raising behavior, investment behavior and income distribution;
The relationship between the three contents: the quantity, structure and cost of financing will affect the scale, combination and benefit of investment; The scale of investment ultimately affects the final income of the enterprise.
The goal of enterprise financial management
In the modern market economy, the intricate economic relations formed by commodity production and exchange are all based on funds, and the movement of funds has become the embodiment of various economic relations. Corporate finance revolves around capital movement.
Specific forms and types of enterprise capital movement
Cash is the beginning form of enterprise capital movement and the end form of each cycle of enterprise capital. Cash movement is the dynamic performance of enterprise capital movement.
There are three types of enterprise capital movements:
(1) Operatingcashflows: refers to cash inflows and outflows generated by transactions related to the production and sale of enterprise products and the provision of labor services.
(2) Investment cash flow: refers to the cash inflow and outflow from transactions related to the purchase and sale of fixed assets and long-term securities of enterprises.
(3) cash flow from financing: refers to the cash inflow and outflow from transactions related to corporate shareholders' equity, long-term debt financing and short-term debt financing.
Characteristics of enterprise financial management
Corporate finance has three characteristics: openness, dynamics and comprehensiveness.
1. The modern market economy is dominated by the financial market, which, as a place for enterprise financing and a link between the supply and demand sides of enterprise funds, has a decisive influence on the socialization of enterprise financial behavior. The openness of financial market system determines the openness of enterprise financial behavior.
2. Enterprise financial management takes capital movement as the object, which is the general and essential abstraction of enterprise management process and the comprehensive reproduction of enterprise reproduction management process. Therefore, the enterprise financial management behavior centered on fund management is a dynamic management system.
3. Corporate finance revolves around capital movement. Capital movement, as a comprehensive performance of key processes and links in enterprise production and operation, has the greatest comprehensiveness. Mastering the capital movement is like holding the "bull's nose" of the enterprise's production and operation, and "pulling one hair and moving the whole body". Comprehensive is an important feature of financial management.
Enterprise financial management environment
Financial management should not be understood as closed financial management limited to enterprises. Financial management itself tries to analyze the financial problems of enterprises from a micro perspective, but it is inextricably linked with macroeconomics.
1. Business environment: There are four basic forms of business organization in the modern market.
(1) Sole proprietorship and partnership;
(2) limited liability company (LLCS) and limited liability company (head office)
2. Tax environment: including enterprise income tax and personal income tax;
Taxation directly or indirectly affects most decisions of enterprises. Through taxation, the government has a far-reaching impact on the behavior of enterprises and their owners. A wise decision that does not involve taxes, after considering taxes, may prove to be a bad decision (sometimes just the opposite).
Establishment of corporate financial institutions
Consider the position of financial management behavior in modern enterprise management and its own role.
The qualities that financial experts should possess.
(A) comprehensive quality requirements
The economic environment, especially the financial market, is changing rapidly and becoming more and more complicated. In order to realize the dynamic balance between internal conditions, external environment and enterprise goals, higher and higher requirements are put forward for the quality of financial experts
(B) the concept of modern financial management
1) competition idea
The market economy is full of competition, and the principle of survival of the fittest runs through. External competition forms competition for enterprises and also creates various opportunities for enterprises. Competitiveness can only be formed in competition.
2) the concept of crisis
3) the concept of time value of money
The time value of money is the appreciation of money over time, and it is an important economic lever. It is required to occupy one yuan of funds to give one yuan effect, and one day of funds to give one day effect. You can't take up funds in vain without any effect. Users of funds must be careful and careful, and strive to improve the economic benefits of the use of funds.
4) Information concept
Modern market economy is information economy, financial economy and global economy. All economic activities must be guided by fast, accurate and complete information and cannot be implemented blindly. Therefore, financial experts in modern market economy must firmly establish the concept of information, start with collecting and analyzing information comprehensively, accurately and quickly, and implement financial decision-making and fund management.
(3) Basic guiding principles
1) environmental adaptation principle
2) the principle of overall optimization
3) principle of correspondence between profit and crisis
(D) the quality of financial experts should have
Financial experts must be highly intelligent and creative talents; Have a strategic mind, an open mind and a far-sighted strategy; Be good at understanding and dealing with problems from the strategic height of the overall progress of enterprises; We should have a sense of competition, fight the market, seize the opportunity and make bold decisions; Dare to face the crisis, control the crisis and improve the crisis decision-making ability.