Research On Internal Financial Control Of Small And Medium - Sized Enterprises In China

For businesses, its management efficiency need to rely on sound internal control measures to achieve efficient implementation of enterprise development strategies, increase economic efficiency of enterprises. The contents of internal controls included more, but the most critical is the content of internal financial controls, internal financial controls and reasonable further development of enterprises has a huge role, it is intertwined with the activities of the enterprise, objectively speaking further development of enterprises that require high efficiency, rationalization support internal financial control measures, it can guarantee business capital in rational use and deployment.The object of this study is the company’s internal financial control issues, found inadequacies of its existence, and give guidance for further optimization. In this paper, the case is selected LD companies, combined with the five basic elements of internal financial control and internal control theory, the actual situation of the company LD internal financial controls were analyzed studies, this paper to analyze the method of selecting the Institute There are two main That literature review and case study method.First, the internal control theory are introduced and combined with the internal financial control theory together, come out of internal control by the internal financial controls, and LD’s internal financial controls summarize the problems, propose solutions to problems relevant solutions. During the study, the main findings following question: unreasonable financial organizations, improve the financial system, liquidity shortage, the lack of a comprehensive budget, poor communication, internal supervision is not in place. Identify the cause of these problems is the company’s internal financial control managers not pay enough attention, risk awareness is not strong, the wrong understanding of budgetary control and the lack of effective supervision mechanisms.Then, for LD internal financial control problems this article gives a targeted solution, including the establishment of good internal environment, the development of financial incentive policies, strengthen risk control of accounts receivable, the establishment of a comprehensive budget control system, enhance information exchange and communication, the corresponding improvement measures and specific methods of internal supervision and inspection mechanism be established.Finally, the use of a combination of theory and practical method is proposed for the company’s internal financial controls have LD value suggestions and measures to provide a reference for the same type of reference value the company’s internal financial controls.