Change: the financial management of SMEs SMEs are mainly two: processing and technology enterprises. Processing enterprises is generally more primary products, the market is low; tech company&#39;s products generally undeveloped state is still in the market, product technology to be optimized; from the workshop process developed from the quality managers of SMEs is generally low, The founder of Small and Medium invention generally people and groups, the management approach is also more extensive. All this led to investors and banks to worry about the development prospects of individual SMEs. But China&#39;s future economic growth of SMEs is the leading force, not only because 50% of SMEs in China created the ultimate product and service, hold the potential of SMEs and the spillover of the technology market demand is growing for large enterprises basis. With China&#39;s accession to the World Trade Organization, small and medium enterprises will face more intense competition in the market. How to deal with SMEs? I think the first should be on the current status of SMEs in financial management and analysis of the causes and take appropriate measures to optimize the financial management of SMEs, improve the quality of financial management, the promotion of SMEs, healthy and steady development. 1, Present Perspective Terms from the current situation of China, the existence and development of SMEs is necessary and important, with the further development of SMEs, its status will be important. However, China SMEs, because of its small scale, a single economic activity, a considerable portion of Hu Shi&#39;s core financial management, management, rigid thinking backward, so that production-management model enterprise management limited administrative pattern among the enterprise financial management role has not been fully realized. On the other hand, due to changes in the macroeconomic environment and institutional effects, small and medium enterprises in strengthening financial management blocked. For example, the policy of &quot;discrimination&quot; to enable SMEs and large enterprises can not be fair competition; local government departments in a large number of interventions to target short-term financial management of SMEs based; financial management by the impact of excessive corporate leaders, etc.. Weak financial management, so hard to deal with small and medium intense, complex and volatile market competition. Second, analyze the reasons Small-sized problems in financial management by the macroeconomic environment and its own double factors. (A) of the external financing difficulties and financial management by the limitations of SMEs Capital is the lifeblood of any business, small and medium enterprises are more deadly. On SMEs, the financing of the smooth production and operation enterprises play a decisive role. At present the initial establishment of a more independent small and medium enterprises, multi-channel financing system, but financing difficulties, the security is still difficult to restrict the development of SMEs of the most outstanding problem. The main reason: 1, difficulty in financing, a shortage of funds. Banks and other financial institutions is the main source of finance for SMEs, but SMEs to attract financial institutions, investment or borrowing more difficult. Even if banks agree to lend to SMEs, but also high risk due to increased lending rates, which increases the cost of financing for SMEs 2, countries do not have dedicated SME management support organizations, the state&#39;s preferential policies for small and medium enterprises are not inclined to make long-term at a disadvantage. 3, excessive debt, high financing costs and risks, resulting in lower credit rating of SMEs, credit is relatively poor. 4, intermediary institutions are not perfect, the lack of services specifically for SME loans and loan guarantees financial intermediary institutions. &quot;Corporate Credit Loss&quot; is a SME credit guarantee institutions of the most difficult issues. First, no historical credit data business, banks do not credit credit history and credit records of the public system; Second, corporate financial information is untrue, do not have the feasibility of credit guarantee. This is a major factor in financing of SMEs. In addition, the lack of mortgage assets, market uncertainty, business management, not forming the majority of the important factors. (B) self-management is not high, so that the financial management of SMEs in name only 1, rigid management model, management concepts obsolete. On the one hand, the typical management of SMEs is high degree of ownership and management unified, business investors is also the operator, this model is bound to the financial management of enterprises have a negative impact. A considerable part of small business are individual and private nature of these enterprises, centralized leadership is serious business, and financial management of the theoretical methods for lack of knowledge and research, with the result, regardless of their duties, ultra vires act, resulting in financial management confusion, lack of strict financial controls, accounting information distortion. On the other hand, managers of management ability and poor quality, management, backward thinking. Some business managers based on their own reasons, not financial management into an effective mechanism of corporate governance, lack of modern financial management concepts, so that financial management has lost its rightful place in business management and role. 2, weak financial management infrastructure, system is not perfect, mainly as follows: ①, poor management of cash, resulting in idle or insufficient funds. Some SMEs that cash as possible, resulting in idle cash, did not participate in the production flow; some companies use the lack of program funding arrangements, over-purchase of real estate, business can not cope with much-needed funds into financial difficulties. ②, accounts receivable turnover is slow, resulting in the recovery of funds difficult. The reason is not a strict credit policy, the lack of effective collection measures, accounts receivable can not be honored, or the formation of bad debts. ③, inventory control is weak, resulting in financial slack. Many SMEs are often more than the end of capital stock of occupation, more than double its turnover, resulting in sluggish capital, liquidity failure. ④, not heavy weight of money, assets waste. Many managers of small and medium enterprises, raw materials, semi-finished products, such as the management of fixed assets in place, a problem with no accountability, asset waste. 3, management of low quality. At present, many small and medium accounting, accounts are not, information distortion, chaotic financial management; enterprise set of extra accounts, fraud, resulting in virtual loss of Profits and Losses or virtual reality illusion of profit; and so on. The reason is, first, the weak foundation of corporate finance, accounting, personnel quality is not high, they are constrained by the leadership, can not exercise their right of supervision; Second, business leaders a sense of law, ignore the financial system, financial discipline, seriousness and mandatory . 3, Countermeasures Chinese SMEs in financial management problems in the harm is serious, these risks may affect the continued development of small and medium enterprises, SMEs and even home and kill. Join the WTO, SMEs are faced with a more formal competition, there are no standard financial management system is unable to get permits to enter certain markets. In order to solve the problem, to be from the government, market and the three aspects of the enterprises themselves (A) The Government should strengthen relevant laws and regulations, as soon as possible to develop or improve policies conducive to SME development. 1, small-scale operation of these enterprises, poor ability to withstand market risks, financial management capacity of poor Jueding its credit financing through the market low of Tedian. This objective requires the State from a stable financing mechanism through the provision of appropriate support. Many countries have enacted laws aimed at SME development, regulations and preferential policies, such as Japan&#39;s &quot;SME Basic Law&quot; and &quot;modernization of SMEs Promotion Law,&quot; U.S. &quot;Small Law&quot; and &quot;fair implementation of the SME Act (1996), &quot;and so on. In this regard, we should learn from international experience. What is gratifying is that China has already begun work in this area. For example, China has promulgated the &quot;SME Promotion Law,&quot; to develop its own development needs of SMEs, a market economy development. Is also the need for China to enter WTO. All these will further the development of SMEs in the future and create a favorable financing environment 2, the establishment of SME fund. Including special purpose funds, guarantee funds, venture capital funds, mutual funds, their funding sources can be various levels of government financial institutions and SMEs membership fees, fund management, the implementation of closed operation, focused on supporting the development of SMEs. SME Bureau, Zhejiang Province, announced the beginning of this year, there will be 10 million yuan annually to support a special fund to support SME growth of SMEs. Mainly used for business enterprises to support growth of SMEs in training SME Credit Guarantee System in Vocational and Technical staff training and improved social service system. This year, 10 million yuan to support this growing fund focused on small and medium enterprises for the training, and service system for SMEs to give some support. 3, accelerate the establishment of SME credit guarantee system. SME credit guarantee institutions for the purpose of the intermediary is a service organization, not for profit purpose, guarantee fees charged, not to increase the cost of financing costs of SMEs. In order to meet the investment and financing system reform, national SME authorities and the Ministry of Finance in coordination and other related departments to actively brewing &quot;SME Credit Guarantee Regulations&quot; (&quot;Measures&quot;), the introduction. &quot;Measures&quot; designed to promote SME financing to solve the problems faced by lack of credit. Meanwhile, on another important SME development regulations - &quot;SME Development Fund Management Measures&quot; are worked out. (B) the right investment decisions, efforts to reduce investment risk 1, should be the main domestic investment. Inward investment, mainly in the following aspects: First, investment in new product trial. Second is investment in equipment renovation. Third, investment in human resources. At present special attention should be investment in human resources, in some ways that the strengthening of investment in human resources, with some high-quality management and technical talent, enterprise success and failure. 2, scattered fund investment, reduce investment risks. SMEs in the accumulation of capital has reached a certain size, you can engage in diversification, the eggs in different baskets to diversify investment risk. 3, investment procedures should be standardized. When the SMEs in the financial, technical operations, management and so on have a certain strength, you can learn a common practice in large enterprises, standardize project investment process, the implementation of investment supervision, at all stages of the investment activities to achieve well-designed and implemented. Also, pay attention and follow up strategy to avoid investment risks. (C) strengthening financial management and strengthen financial controls 1, to raise awareness, to strengthen the financial management of the implementation of modern enterprise system as an important part of implementing the various functional departments within the enterprise. As the use of the funds flow to the enterprise involved in all aspects of business should change their ideas, recognizing good job, with good control of the financial sector is not only good financial responsibilities, but to the company&#39;s various departments, various production and business links event. So want to see the implementation of joint management of funds for enterprises to contribute. 2, efforts to improve efficiency in the use of funds, the use of funds produced the best results. To do this, first of all funding sources and to make effective use of tie. Such as short-term loans must not be used to purchase fixed assets, so as not to cause cash flow problems. Secondly, to predict recovery of funds and payment time. For example when the recoverable accounts receivable, when can purchase, must be aware of, otherwise, could easily lead to imbalances and capital, according to Orange. Finally, a reasonable allocation of the capital, working capital and fixed capital of the occupation should be effective coordination. 3, to strengthen control over the property. Establish a sound internal control of property and materials management systems, material procurement, requisitioned from the sample management, sales and establish a standard operating procedure, close the loopholes, to maintain security. Property management and records must be separated to form strong internal constraints, will not be able to asset management, records, inspection check by a person to do so. Regular inspection of property inventory, supervision and record management personnel to maintain vigilance which is not negligent. 4, to strengthen the management of inventory and accounts receivable. In recent years, many small and medium enterprises find themselves short of liquidity difficulties, increased inventory and accounts receivable management is an important measure at a time. Enhance inventory management, and possible compression of inventory out of date, to avoid financial slack, and with the scientific method to ensure the best structure of stock funds. Strengthen the accounts receivable management, credit assessment of customer credit for research, regular checking accounts receivable, collection development of sound management practices, strict control of aging. On death accounts, bad debt, to obtain conclusive evidence, for proper accounting treatment. IV, Conclusion The economy develops, the more important financial management. Emphasis on financial management, will help improve the internal management system for SMEs; help reduce costs, better financing; conducive to investment, and improve investment returns. Suo Yi, SMEs should be and where the Government has introduced the Yi Jilie Jiqiangchutai favorable policy basis, pay close attention to financial management, the Government has introduced and will introduce a series of favorable policies, and thus competition in the market in 激烈 健康, steady development of make greater contributions to society.