Research On Relevant Problems About The Financial Management Of Small And Medium-sized Enterprises

The small and medium-sized enterprises (hereafter referred to as SMEs) emerged in China in early 1980s. After 20 years fast development, SMEs have now become a formidable new-born force in market, which plays an important role in our national economy. However, for reasons this and that, its financial management still lags far behind its development and seriously retards its further growth, leaving too much to be desired.By analyzing the present conditions of SMEs, this thesis has revealed the problems in money-raising, investment, cost management and internal control of SMEs, and proposed the improvement methods and strategies against them. As to money-raising problem, it has illustrated how SMEs could break through the barrier and secure the needed money, and adopt EBIT-EPS method to measure the capital structure and to realize its maximum value. As to the investment risks, it proposes to establish the financial estimation system and make investment decision by using net present value analysis and sensitive factor analysis methods. As to cost management problem, it proposes that the SMEs should make a full understanding of the new contemporary theories and approaches of cost management and apply them to the daily cost management. As to internal control, it has further pointed out that the complete establishment of internal control is the most important means for SMEs to realize its management object, self-restraint and internal control.With those step–by- step analysis, this thesis aims to promote the SMEs'financial management awareness, strengthen its financial management capability and thus enhance its capability of anti-risk and competition.