Study On Small And Medium-sized Enterprise Financial Management Based Upon The Internal Control

With the rapid development our national economy and the perfection of market economysystem, small and medium-sized enterprises have become an important part of economicorganization in our country. They play a very important role in the creation of newemployment opportunities, promoting scientific and technological innovation, strengtheningthe market vitality and promoting urban and rural economy development. But, in recent years,with the development of international economy integration and the rise of information degree,China’s small and medium-sized enterprises’ survival environment has changed, they arefaced with increasing competition at home and abroad, which brings many obstacles to theirdevelopment. Among the many problems small and medium-sized enterprises faced, the lagof financial management is the main factor which restricts the development of small andmedium-sized enterprises.Small and medium-sized enterprises’ financial management is different from largeenterprise groups, which has its unique characteristics. Those characteristics are mainlyreflected in the weakness of control foundation poor ability to resist risks, and the methods offinancial predictions, financial control and financial analysis are not made good use of. In aresult, it affects the correctness and scientific nature of the financial decision-making. Andinternal control ensures the realization of enterprise goal through the risks control in theprocess of enterprise production and operation. Therefore, internal control, which strengthensthe control of enterprise financial management, is very important to improve the level of smalland medium-sized enterprise financial management.This paper analyzes present situation and the existing problems of financial managementin the small and medium-sized enterprise. Aiming at the lack of internal control in thefinancial management and poor ability to resist risk, it puts forward a framework with theorientation of the internal control for small and medium-sized enterprise financial management. Through the establishment of sound corporate governance structure, thereasonable organizational structure, clear responsibilities and division of labor, improving theauthorized examining and approving procedures, effective process control and necessary auditsupervision means to strengthen the role of financial management functions in small andmedium-sized enterprise, and improve the effect of small and medium-sized enterprisefinancial management work, finally enhance the competitiveness of small and medium-sizedenterprises. In the result, make the small and medium-sized enterprises to play a better role inthe national economy.