Research For Changsha Chemical Industry Research Institute Financial Management Reform And Management System Optimization

With the development of national economic reform, China’s public institutions gradually enter the open market. They are facing not only the tough competition from the domestic competitors, but also facing challenges from the international market. Therefore, reform of the institutions is imminent. As a core component of the management of enterprise, reform of financial management undoubtedly will be quite important and difficult. For a long time, there are lots of problems concerning financial management of public institutions, such as poor awareness of financial risks, outdated financial concept, lack of mechanism constraint of budget, the un-robust internal control system, accounting irregularities, and etc. How to innovate financial management and solve the problems we encountered and, in the meantime, follow the the new fiscal system becomes the priority1task we should accomplish.This paper starts to study the characteristics of the public institutions and their emergence, development and current situation. And the it discussed on-going reform of institutions and the trend of the financial management system. Under such background, it takes the Changsha Chemical Industry Research Institute as a sample of institutions and carries out investigation of institution reform on the perspective of financial management. Through in-depth study of the situation of its financial management, this paper sums up the problems encountered concerning the financial management system, internal control system and budget management and analyze the reasons behind the problem. It concludes that the problems are mainly due to the policy regime, personnel structure and quality as well as external policy regulations and internal management system. Based on these analyzes, this paper proposes how to optimize Changsha Chemical Industry Research Institution in regards to the content of financial management, financial management team and financial management methodology. The optimization mainly consists of sound financial management system, the budget management system, the internal control system, financial analysis system, alarm systems and tax planning system. In order to assess the outcome of optimization, a forecast is done about the situation which could be after the optimization and it is found that the main financial indicators have been greatly improved. Meanwhile, this paper proposes the methodology and measurement ensure successful implementation of reform and provides reference for optimizing the financial management system of the restructured public institutions.