Financial Compliance Solutions For Small And Medium-sized Enterprises Of High Technology Industry Before Shares Transferred In NEEQ

The Science and Technology Industry contribute greatly to the development of China’s economic,in which High-tech Small and Medium-sized Enterprises(Hi-tech SMEs)plays a major part.However,it is very difficult for High-tech SMEs to select equity financing as Corporate Financing Structure and to develop Intellectual Property.National Equities Exchange and Quotations(NEEQ)is specialized as capital market for Small and Medium-sized Enterprises engaged in high technology industry to transfer shares.A great deal of High-tech Small and Medium-sized Enterprises apply for NEEQ and prepare for the entrance review,with seventy percent companies met the financial requirements successfully.And also,the powers of China Securities Regulatory Commissions(CSRC)to supervise are increasing gradually.Financial Solutions for high technology Small and Medium-sized Enterprises before the entrance review of NEEQ is in urgent request.This paper is prepared and based on cases study which are experienced by the High-tech SMEs applying for NEEQ.In compliance with financial rules and regulations,financial solutions and advice are provided to the SMEs who failed in applying for NEEQ.By case study,most of the SMEs who failed are caused by failure in compliance with financial rules and regulations,including financial control system,accounting method and financial information disclosure policy.The SMEs applied for NEEQ should solve these financial compliance problems before entering the entrance review.The SMEs applied for NEEQ should establish financial system soundly and in compliance with financial rules and regulations to avoid the high risk of the entrance review,and also prepare full-scope applying stuff.The management should learn how to manage a company with sound financial knowledge.The financial staff should improve knowledge and study the new research.The company should strengthen financial control,accounting system and solve the financial problems before applying for NEEQ.The solutions and advice include corporate governance,financial management and internal control,cash management,revenue recognition,R&D expenses capitalized,capital injection,and tax return,etc.In summary,the SMEs applied for NEEQ should establish sound financial management system and solve all the financial problems before entering the entrance review.And the SMEs in NEEQ should learn from the listed companies in Small and Medium Enterprise Board.