How to Strengthen the Financial Management of Datun Power Plant (1)

Under the market economy system, the business risks of enterprises are everywhere. How to make an enterprise survive and develop successfully is a major issue that every enterprise must consider. Enterprises must focus on improving economic benefits and aim at maximizing enterprise value. As a comprehensive management work, financial management plays an important role in the process of maximizing enterprise value. Taking Datun Power Plant as an example, this paper discusses how to strengthen enterprise financial management. Key words: strengthening financial management of power plants Financial management is a management activity of making decisions, planning and controlling the whole process of enterprise capital movement. Its essence is to comprehensively manage the whole process of enterprise production and operation in the form of value. \ As the core of enterprise management, financial management's goal must be consistent with that of the enterprise. I. Objectives of Financial Management To strengthen financial management, we must first understand the objectives of financial management. The goal of financial management depends on the overall goal of the enterprise and is restricted by the characteristics of financial management itself. Enterprises are profit-making organizations, and their starting point and destination are profit. Once an enterprise is established, it will face competition and will always be in the contradiction between survival and closure, development and shrinkage. Enterprises can only be profitable if they survive, and they can only survive if they continue to develop. Therefore, the goal of enterprise management is survival, development and profit. Accordingly, it is required that the financial management of enterprises should first maintain the ability to pay off due debts, reduce the bankruptcy risk and make enterprises survive for a long time. Secondly, raise funds needed for enterprise development through multiple channels, and finally make the enterprise profitable through rational and effective use of funds. So what is the goal of enterprise financial management? That is, in the process of enterprise production and operation, through the raising, use, adjustment and revitalization of funds, the value of funds can be maintained and increased in the market economy, and the value of enterprises can be maximized. This is a comprehensive goal. Second, the external environment that affects the realization of financial management objectives is divided into legal environment, financial market environment and economic environment. Therefore, we must seriously study and master the existing legal norms of enterprise organization, tax law, contract law and so on in our country, so that in the process of production and operation, when dealing with the economic relations between enterprises and the state, other enterprises or social organizations and employees, we can abide by the law and reduce the legal risks of enterprises; Secondly, we should analyze the financial market environment in which we live. We can invest and raise funds through the financial market, and reveal the relationship between supply and demand of funds and the national financial policy through the change of market interest rate. Third, we should study the economic environment and learn about economic development, inflation, interest rate fluctuations, government economic policies, competition and other information. The above external environment cannot be changed by a single enterprise, but it has a great and far-reaching impact on the production, operation and financial management of enterprises. We can only passively adapt to it, and adjust our strategies and tactics in time according to its changes, change management decisions, and maximize the value of enterprises. \ Management decision-making is an internal factor that enterprise management authorities can control. We should improve the return on investment, reduce the risk of enterprises and achieve business objectives by selecting investment projects, determining capital structure and formulating profit distribution policies according to the changes of external environment and combining our own conditions. Third, the current problems in enterprise financial management 1, information distortion, it is difficult to provide a basis for scientific decision-making. The most fundamental thing of modern enterprise management is information management, and enterprises must grasp real and accurate information in time to control logistics and capital flow. However, at present, the information of many enterprises in China is seriously opaque, asymmetric and unconformity. For the sake of their own interests, enterprise management departments are unwilling to provide relevant information in time, artificially creating information islands, and it is difficult for senior decision makers of enterprises to obtain accurate financial information, and they are not clear about the following situation. More seriously, enterprises at all levels are hiding information, even providing false information, which makes the summary information generally distorted, inaccurate accounting and untrue statements, and sometimes consolidated accounting statements cover up the actual operating conditions of subsidiaries. At the same time, under the influence of interest-driven, social auditing has also gone through the motions, so that some enterprises "use false data to make false accounts and real data to make false accounts" and report different accounts on different occasions. It seems that the book profit is quite large, but there are more and more non-performing assets, and the phenomenon of not mentioning, not amortizing and false gains and losses abound. According to the spot check of the accounting information quality of the Ministry of Finance, more than 80% of the accounting information of enterprises in China is distorted to varying degrees. Unreal information not only directly affects the scientific decision-making of enterprises, but also affects the effect of government macro-management and social supervision. 2. Poor monitoring and lax supervision. At present, in state-owned enterprises, there are widespread problems such as owners, parent companies and subsidiaries adversely monitoring all capital flows, even insider control, and even misappropriating state-owned assets without authorization. Although some supervision functions have been set up and various supervision systems have been formulated, it is difficult for supervisors to play their roles in time and effectively because they do not have the necessary information and means to grasp the overall situation of enterprise financial funds. A considerable number of enterprises have not yet formed an effective decision-making and restraint mechanism on major investment and other issues. Individuals have the final say, and the flow of funds is out of touch with control. It is difficult for many parent companies to keep abreast of the changes in the financial funds of their subsidiaries. Enterprises can't make ends meet, and they rely on borrowing the new and returning the old to maintain their production and operation, which has great financial risks. Because the supervision work is not immediate but lagging behind, no problem is enough, and if there is a problem, it will be chilling. Many business leaders can't tell the financial situation of their own families, but the financial personnel don't know much about the business situation and are in a subordinate position, so they can only make accounts according to the leaders' intentions, resulting in "financial management follows accounting and accounting follows the leaders' will", which makes financial supervision a mere formality. 3, scattered funds, low efficiency at present, the contradiction between the need of centralized management of enterprise group funds and the reality of decentralized occupation of internal multi-level enterprises' funds has become the most prominent problem in enterprise financial fund management at this stage. First, it is common for subsidiaries to open multiple accounts. Some subsidiaries of some groups set up hundreds to thousands of accounts, and the fund management is seriously out of control. Second, the arbitrariness of investment decisions. Some enterprises, regardless of their own abilities and development goals, blindly invest and are keen on setting up new stalls. Many investment mistakes have caused serious losses, making the already tight financial situation worse. Third, serious capital precipitation, unreasonable occupation, arrears in payment for goods, increased funds for finished products, slow turnover, and decreased corporate credit and profitability. After analyzing the external environment and internal resources of the enterprise, the financial department of the enterprise should participate in the decision-making process of the enterprise, comprehensively compare the advantages and disadvantages of various schemes from the perspective of realizing the financial management objectives of the enterprise, provide rational suggestions to the decision-making level and choose the best scheme. \ Integrating theory with practice, I think we should strengthen financial management from the following aspects. 1, based on team building, to improve the financial management level of enterprises, it is necessary to improve the overall quality of accounting personnel. Because all work is done by people, and talents are the creators of corporate wealth, strengthening financial management and personnel quality should be the first factor. The quality of financial personnel includes political quality and professional quality. As a qualified financial personnel, first of all, we should unswervingly implement the accounting system formulated by the state and enterprises, maintain financial discipline, set an example, and dare to fight against illegal acts. Secondly, accountants must have high professional quality to meet the needs of financial management. With the development of society and scientific progress, the requirements for financial personnel have also developed from simple bookkeeping, accounting and reimbursement in the past to new areas of accounting work such as budget, control, analysis and assessment. Every year, Datun Power Plant organizes financial-related training, requiring all financial personnel to participate in external and internal training, self-study and study in work practice, and strive to improve their own quality. 2. "Without rules, there would be no Fiona Fang". If accountants have no rules to follow, the whole financial management work can only be fragmented. Therefore, Datun Power Plant has formulated a series of applicable financial management systems in time according to the requirements of the unified financial management system formulated by the state, combined with the actual situation of the unit, and in line with the principle of first establishing and then breaking. The leaders of the plant attach great importance to it and ask everyone to abide by it and strengthen the implementation and assessment of the financial system in order to improve the economic benefits of the power plant and reduce the publication of this article. If you like, you can click \ to learn more!