Research On Internal Financial Control Of Freight Forwarding Enterprise

As the world economic trade becomes increasingly frequent and government policy's support, the freight forwarding industry has been developed gradually. It has become a larger industry in our country, and plays an important role in China's national economy. With China's accession to the WTO, China's freight forwarding enterprise are faced with more opportunities and challenges, freight forwarding enterprise must continue to improve themselves in order to gain advantage in the increasingly intense competition. From the financial scandals such as Enron in United States, to the domestic accounting fraud cases about Public Company such as Yinguangxia, Zhengbaiwen and so on, gives a wake-up call to the freight forwarding enterprise. If the freight forwarding enterprise wants to continue developing rapidly and healthily, they should pay adequate attention to internal financial control.Based on defining the scope about internal financial control, thus give a brief analysis to the content, objectives, principles about the internal financial control. They are the basis for follow-up analysis of the chapter. Only to grasp the objectives and principles about internal financial control, then we can put forward practical internal financial control. After defining the scope of internal financial control, analyze the related theory about internal control--COSO model. COSO model becomes more and more welcomed in practical and theoretical circles in recent years. Internal control is divided into five elements by this model: control environment, risk assessment, control activities, information and communication, monitoring. Based on the analysis of the COSO model, analyze the significance about COSO model on internal financial control: stress the importance of people, emphases on risk assessment, stress the comprehensive control on activities, and stress the importance of staff assessment, and so on. They are the concerns of internal financial control of freight forwarding enterprise in this paper.Through the analysis of internal financial control about freight forwarding enterprise, we find that there are many loopholes in internal financial control, such as: confusion charges in freight forwarding industry, receivable management and risk awareness is not strong, cost control is poor, budget management is poor, performance evaluation method is backward. Only freight forwarding enterprise to strengthen internal financial control, they can remain the advantage position in the fierce competition. Against the exist problems in internal financial control of freight forwarding enterprise, the corresponding measures for improvement are proposed in this paper: to control the debt and claims, to strengthen the financial budget management, use ABC(Activity-Based Costing) for cost control, use Balanced Scorecard for performance control.At the end of this paper, through the research about the actual situation of Hyde, analyze Hyde's exist problems in internal financial control, such as: funds management, budget management, cost management. Combined with the internal financial control measures of freight forwarding enterprise that have already been proposed, propose the internal financial control measures related to the actual situation of Hyde's for reference.