The Exploration Of Constructing Financial Evaluation System For The WZ Magazine Company

With China’s economic and social development, small and medium-sized enterprises (SMEs) have increasingly become an important part and the driving force of national economy. However, the old financial analysis and evaluation system used by our SMEs cannot meet the needs of their own development in the fierce market competition and complex market environment under the influence. In regards of this, the paper analyzes the general situation of the financial management in our SMEs and tries to establish a set of suitable financial analysis system for the SMEs. Thus can provide support to the enterprise’s investors, creditors, operators and other stakeholders. At the same time, the system can help the enterprise to analyze its performance continuously and objectively, to make important reference on investment direction, and finally make the financial analysis an indispensible tool in the enterprise management.In this paper, the first chapter focuses on introducing the current status and analyzes the main methods of financial analysis in domestic and foreign SMEs, Indicating the content and method of this paper. In the second chapter, we attach great importance to the theory of financial analysis system. We introduce the evolution of rules and regulations of SMEs’ financial analysis in China; Compare the financial analysis methods and standards across the world, including Du Pont Financial Analysis System, Wardo Proportion Score, Balanced Scorecard and EVA. Pointing out the present status of our SMEs’ financial analysis is based on the financial ratio index analysis. This mode has several defects such as the lag of financial management ideas, the low level of rigidity, the content of financial report limits, the singularity of the analysis method, low efficiency etc.. This chapter lay out the theoretical and realistic basis of constructing a new financial analysis system for SMEs comprehensively. the third chapter use the WZ magazine company as the example, through the systematic analysis to the defects of the current financial analysis mechanism, find out the causes, and initiate the reform measures such as improving the recognition of the importance of financial analysis, renewing the existing financial analysis evaluation method, increasing the value of financial statement data, developing financial analysis ability of the accountant, increasing the ability to make enterprise development analysis and the non-financial factors analysis, establishing an evaluation system in line with the current situation of the WZ magazine to solve the present dilemmas of the company. In the fourth chapter, on the basis of above analysis, we focus on how to rebuild our SMEs’ financial evaluation system under the new market environment. The diversified index should be the key to the new system, including operating activities, cash flow, development ability, the non-financial indicators etc. The fifth chapter prospects the direction of future development for the China’s SMEs.This article mainly uses the method of combining the theoretical research and empirical research, use the WZ magazine for example to find the problems existing in the SMEs’ financial analysis and put forward suggestions for improvement, eventually establish a set of suitable for SMEs’ financial evaluation system. In the theoretical part, through the literature consult, analyze the enterprise financial analysis related theory. In the empirical research, on the basis of the theory expounded, the article choose WZ magazine company as the research object, combined with the characteristics of the enterprise, analysis of specific practical cases, to further deepen the theory, guiding practice, design appropriate financial evaluation system. In systems research part, the article overview the problem as a complete system, build a reasonable financial analysis system including many aspects, based on the index of the integration of all aspects according to the common problem of SMEs’ financial analysis to design reasonable financial analysis implementation plan.