after China's entry into WTO, the business environment of enterprises has changed. If enterprises want to adapt to the changes in the environment quickly, they need to find out their own problems in financial management and choose their own countermeasures. In particular, there are various drawbacks in financial management of small and medium-sized enterprises in China, such as poor financing channels, lack of internal control system, weak basic accounting work and backward information construction of financial management. To overcome these problems, all sectors of society need to work together to create a good policy and service environment for small and medium-sized enterprises through legal construction, innovate financial system, attach importance to the cultivation and encouragement of financial innovative talents, network financial management and establish relevant punishment and supervision systems.

1. the present situation and problems of financial management of small and medium-sized enterprises in China

under the macro-economic system in China, small and medium-sized enterprises have suffered many negative effects in financial management. Many small and medium-sized enterprises can't compete fairly because of the "cold shoulder" of policies and large enterprises; A large number of local government industry management departments intervene, making the financial management objectives of small and medium-sized enterprises short-term. For small and medium-sized enterprises in China, the limitation of their own factors, especially internal management, is the main problem.

1. The financial management level of SMEs in China is low. According to the principle of cost-effectiveness, small and medium-sized enterprises prefer to choose traditional management methods to reduce management costs. As a result, financial management talents are lacking and the quality of financial management personnel is low. In these enterprises, the centralized phenomenon of enterprise leaders is serious, and they lack the theoretical methods and related knowledge of financial management, which leads to confusion in financial management, lax financial monitoring and distortion of accounting information.

2. It is difficult to raise funds and has poor risk resistance. The financing method is single and the loan is difficult. Banks are usually reluctant to lend money because of the high cost of SME loan business and monitoring. In addition, there are few specialized institutions for SMEs to provide guarantees, the credit rating of enterprises is low, and the collateral is insufficient, so it is difficult to get financial support. Lack of direct financing channels, enterprise development funds mainly rely on self-accumulation, due to the imperfect venture capital system, the lack of a complete legal protection system and policy support system, resulting in private funds generally afraid to enter the field of venture capital.

3. Weak investment ability and lack of scientificity. Small and medium-sized enterprises have a low level of financial management, lack of excellent management talents, and advanced financial management techniques and methods can not be used to conduct scientific investment analysis and market demonstration. The result is "not waiting for death, but dying for death", resulting in investment mistakes. What's more, some enterprises have spent a lot of money to invest, but in the end they have not achieved the expected results, or even "draw water with a sieve", which has put heavy burdens on enterprises and even brought them to the brink of bankruptcy.

4. Weak financial control. (1) The cash management is not in place, the cash turnover is ineffective, and the existing cash is not revitalized, which greatly reduces the income of enterprises. (2) The turnover of accounts receivable is slow. With the development of economy, credit sales will become more and more common. Under the fierce market competition, small and medium-sized enterprises will take more commercial credit promotion to resist the pressure of large enterprises. (3) Weak inventory control. (4) Insufficient profit management ability. (5) Low cost management level.

second, the reasons for the current situation of financial management of small and medium-sized enterprises in China

Small and medium-sized enterprises all developed in the institutional gap between planned economy and market economy, and were restricted by the institutional environment and inherent deficiencies of enterprises at that time. The problems in financial management were caused by the macroeconomic environment and their own dual factors.

1. External reasons. For small and medium-sized enterprises, financing plays a decisive role in the smooth development of production and business activities. At present, the difficulty of financing and guarantee is still the most prominent problem that restricts the development of small and medium-sized enterprises. Even if banks agree to lend to small and medium-sized enterprises, they will raise the loan interest rate because of high risks, which will increase the financing cost of small and medium-sized enterprises. "Lack of enterprise credit" is the most difficult problem faced by credit guarantee institutions of small and medium-sized enterprises. First, enterprises have no historical credit data, and banks have no credit records and credit record disclosure system; Second, the financial data of the enterprise is untrue, and it is not feasible to guarantee the credit. This is the main factor of financing difficulties for small and medium-sized enterprises.

2. Internal reasons. Many small and medium-sized enterprises have rigid management mode, outdated management concept, low quality of managers, weak financial management foundation and imperfect system. A considerable number of small enterprises belong to individual and private nature. In these enterprises, the phenomenon of centralized power of enterprise leaders is serious, and there is a lack of due understanding and research on the theoretical methods of financial management, which leads to the confusion of financial management, lax financial monitoring and distortion of accounting information. On the other hand, the management ability and quality of enterprise managers are poor, and their management ideas are backward. Some enterprise managers, for their own reasons, failed to incorporate financial management into the effective mechanism of enterprise management and lacked modern financial management concepts, which made financial management lose its due position and role in enterprise management.

third, measures to improve the financial management of small and medium-sized enterprises

learning from the experience of developing and managing small and medium-sized enterprises abroad, we can explore solutions and countermeasures from improving the external environment for the survival and development of small and medium-sized enterprises and strengthening their own internal management.

1. improve the external environment. Increase support for small and medium-sized enterprises and formulate or improve policies conducive to the development of small and medium-sized enterprises. Improving the environment mainly requires governments at all levels and relevant departments to take service as the purpose and create a good environment for the development of small and medium-sized enterprises.

(1) Improve the corresponding supporting policies and increase the policy guidance and support for small and medium-sized enterprises. Financial assistance and tax incentives are common practices for governments all over the world to support and protect small and medium-sized enterprises. As a vulnerable group in the business community, although government policies cannot replace the market's own resource allocation, effective guidance and support, giving play to the leverage of government financial funds and guiding the intervention of commercial funds are conducive to promoting the healthy development of small and medium-sized enterprises.

(2) provide financing support for the development of small and medium-sized enterprises. Including special-purpose funds, guarantee funds, venture capital funds, mutual funds, etc., the source of funds can be the membership fees of financial institutions at all levels of government and small and medium-sized enterprises, and the funds are closed in management to support the development of small and medium-sized enterprises.

(3) standardize the accounting order of small and medium-sized enterprises. ① Strengthen the legal awareness of the heads of small and medium-sized enterprises, carry out professional ethics education, establish and improve the incentive mechanism, and mobilize the working enthusiasm of accounting personnel according to law. ② Realize standardized accounting management. An important reason for the confusion of financial management and distortion of accounting information is the weak foundation of accounting work. We should strictly implement the accounting basic work norms stipulated by the Ministry of Finance, establish and improve the post responsibility system of accounting personnel, and make the division of labor scientific and reasonable, and the responsibilities clear. (3) Establish a financial and accounting report system with tax report mode as the main body. Formulating accounting treatment and financial reporting rules for small and medium-sized enterprises involves how to reach a consensus with tax requirements. In small and medium-sized enterprises, the importance of tax accounting far exceeds that of traditional financial accounting. Simplify financial accounting statements and information disclosure. Whether accounting information is disclosed in detail and fully or listed briefly and roughly in accounting statements mainly depends on whether it meets the needs of information users and is conducive to people making satisfactory decisions.

(4) accelerate the establishment of credit guarantee system for small and medium-sized enterprises. The Opinions on Strengthening the Credit Management of Small and Medium-sized Enterprises jointly issued by the State Economic and Trade Commission, the State Administration for Industry and Commerce, the Ministry of Finance and other 1 ministries and commissions guide small and medium-sized enterprises to strengthen their credit concept, improve their credit status, create a good credit environment, and accelerate the pace of building a socialized credit system in China. This marks the beginning of the construction of socialized credit system with small and medium-sized enterprises as the main body in China. In the process of establishing credit guarantee system for small and medium-sized enterprises, it is necessary to combine the establishment of credit guarantee system with the establishment of other socialized service systems to provide various services for financing of small and medium-sized enterprises.

2. Practice hard and strengthen the internal management of enterprises

(1) Strengthen the management of enterprises and improve their own quality. Owners and operators of small and medium-sized enterprises should actively change their concepts, attach importance to the core role of financial management, learn from the current management system of enterprises and standardize their operations; While fully mastering the current financial theory knowledge, we should set up the framework of the enterprise's own financial system and strengthen its own management according to the standardized modern financial management methods.

(2) mainly in the form of inward investment. Domestic investment mainly includes the following aspects: first, investment in trial production of new products; The second is the investment in the renovation of technical equipment; The third is the investment in human resources. At present, we should pay special attention to the investment in human resources. From a certain point of view, strengthening the investment in human resources and having certain high-quality management and technical talents are the magic weapon for enterprises to win.

(3) Countermeasures to solve the financing problem. Solving the financing problem of small and medium-sized enterprises certainly requires the government to create a good financing environment for small and medium-sized enterprises and explore multi-level financing channels. However, small and medium-sized enterprises should also see their own problems and improve their credit and financing ability.

① if SMEs want to successfully raise funds, they must first have a clear understanding of themselves, know what they lack, and strive to make their management and other aspects meet the standards and conditions required by banks and other prospective lenders.

② Improve your own financing ability by improving business credit and standardizing the use of financial statements. When encountering financial difficulties, you should also fully explore your own ability, seek sources of funds, stimulate the enthusiasm of internal employees and promote the long-term development of enterprises.

(4) Enterprises should practice their internal skills and strengthen asset management

① Raise awareness, take strengthening fund management as an important part of improving management level, implement it in all functional departments within enterprises, and strive to improve the efficiency of fund use and make the best use of funds.

② Strengthen inventory management, compress outdated inventory materials as much as possible, avoid being sluggish, and ensure the optimal structure of inventory funds by scientific methods.

③ Strengthen the management of accounts receivable, investigate and evaluate the credit of customers who sell on credit, and periodically reassess the credit policies of enterprises and the credit ratings of major customers; Regularly and for accounts receivable, formulate perfect collection management methods and strictly control the aging; Formulate and strictly implement the time limit for dealing with doubtful accounts and bad debts, and conduct proper accounting treatment after obtaining conclusive evidence.

④ strengthen property control. Establish and improve the internal control system of property and material management, and establish standardized operating procedures in material procurement, requisition, sales and sample management to ensure property safety.

V. Conclusion

Based on modern financial management theory, this paper explores the methods and countermeasures to solve problems from improving the external environment for the survival and development of small and medium-sized enterprises and strengthening their own management, and further puts forward principled and targeted suggestions. To solve the problems of small and medium-sized financial management, we need to change our thinking. The reality shows that the financial management problems of small and medium-sized enterprises are reflected on the surface by the scale of enterprises and the quality of management, while the deep-seated reasons are the system and institutional problems. Therefore, it is not enough to solve the problem only by introducing some policies. We must deepen the economic system reform, speed up the system adjustment, comprehensively consider the development of private economy from the overall situation of national economic and social development, cultivate consulting institutions, guide and encourage small and medium-sized private enterprises to change their original thinking and strengthen their own construction.

In short, in order to achieve long-term development, small and medium-sized enterprises must have a clear long-term development strategy, and enterprise operation and financial management strategies must be considered at the level of enterprise long-term development strategy, so as to create a pattern conducive to the long-term development of enterprises from the inside out. That's all I know. I hope I can help you!