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Financial Flexibility Management

2011/1/8 13:25:00 37

The core concept of financial flexibility management in modern enterprises is the people-oriented concept.

Traditional financial management is regarded as "money management". Its main function is to do well in the capital operation of enterprises, to plan fund-raising investment activities, and to allocate benefits.

In the flexible financial management activities, the people's value concept and behavior mode play a decisive role. The object of the financial management is human and the internal and external financial relations formed, and the second is the financial resources (capital, manpower, information or cash circulation).

We should give full play to the maximum effectiveness of human based management in the process of implementing financial management.

Guiding enterprise financial management according to this concept is to develop financial activities around human development based on human development, coordinate financial relations, make financial harmony and promote financial management to promote harmonious development inside and outside enterprises, so that financial management can fully mobilize the enthusiasm and creativity of all enterprises, promote enterprise technological innovation, and ultimately achieve the development of enterprises.

The basic characteristics of financial flexibility management in modern enterprises

First, it is embodied in the flexibility of enterprise financial management. Traditional financial management usually organizes financial affairs according to the enterprise's plan.

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To promote the development of financial management.

Flexible financial management emphasizes the guidance of enterprises' financial activities according to changing circumstances, and leads to the development of financial management and straightens out financial relationships.

From the simplistic debt and debt relationship of the past to cooperation, the former competitor relationship has changed into a mutually beneficial relationship.

Second, it is embodied in the flexibility of enterprise financial management methods.

Mainly from the past procedural and rigid.

Finance

Management method has become a non programmed and flexible financial management method.

In order to shorten the budgetary cycle, we should use concurrent engineering method to compile budgets, change the past rigid responsibility center into a flexible responsibility center, and scientific and technological personnel flow freely within the enterprise to solve problems in production and operation. Financial management should adopt corresponding measures to support various innovative activities of enterprises.

By reasonably increasing the investment in product design, we can not only satisfy users' quality needs, mobilize the enthusiasm of scientific and technological personnel, but also reduce the total cost of enterprises.

All these require the flexibility of financial management.

Third, it is embodied in the flexibility of the means and structure of corporate financing.

Under the condition of market economy, enterprises should be based on their own conditions.

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We should adjust the capital structure, maintain the rational capital structure of enterprises, and be good at using debt management.

In terms of the matching of capital maturity, such as long-term capital, short term capital, long-term capital and short-term capital, there are also problems of elastic combination and reasonable collocation, so that it is possible to minimize all kinds of capital idle and waste, reduce the risk of financing, and give full play to the efficiency of rational allocation of capital.

Fourth, it is embodied in the flexibility of the management of capital utilization.

It is mainly manifested in the large scale of investment, the diversification of investment forms, the diversification of investment contents, the flexible adjustment of investment structure, the analysis of investment strategies in different situations, and the flexible use of investment strategies and methods.

Fifth, it is manifested in the flexibility of the distribution of capital gains.

Enterprises are required to take full account of all possible factors and take into account the interests of different stakeholders. On the basis of favorable development of enterprises and satisfying the interests of all parties, we should choose the profit distribution policy that suits their own characteristics, and adjust the income distribution according to the different development periods and changing environments and conditions of enterprises, so as to ensure the adaptability and flexibility of enterprise income distribution policies.

Sixth, it is embodied in the flexibility of enterprise financial management environment.

It includes good social atmosphere, image of leaders and management objects.

Good social atmosphere and image of leaders can produce many positive effects, which is needed by flexible financial management.

A good management target is that the employees of the enterprise should have higher spiritual pursuit than money. Their wives have strong democratic consciousness, have higher cultural quality and have better moral character.

This is the foundation of flexible financial management.