On the morning of June 24, a short-selling institution questioned Bosideng's market fraud such as inflating its net profit by 800 million yuan.
In the face of the first blow, Lu Luoling, assistant to the chief financial officer of Bosideng, said earlier that Bosideng announced its annual results this Friday, and it is currently a silent period of corporate strategic finance, and the other party chose to announce the short report at this time, so that the company faces many restrictions on how to refute the other party, so an emergency meeting needs to be held internally to discuss.
The relevant person in charge of Bosideng said that the content of the other party's report is not true, and the company will release a performance announcement this week, and will respond positively to the report in the future.
Zhang Peiying, honorary advisor of the Luxury China Alliance, believes that although there may be no problem with Bosideng's financial statements alone, the possibility of fraud cannot be ruled out.
Regardless of whether Bosideng is suspected of market fraud, once someone else catches up on the company's financial problems, even if it does not cause serious injuries, it will affect the company's image to a certain extent.
Finance is in charge of the lifeblood of an enterprise, and only when the financial strategy and the corporate strategy reach a perfect fit and link can we help the enterprise live a good life and live a long life. As the head of the finance department, the CFO often plays an important role, what can they do to avoid the company falling into financial crisis?
1. On the financial strategy of the enterprise
(1) Enterprise strategy
Generally speaking, the content of financial strategy includes: investment strategy, financing strategy, and financial management.
1. Investment strategy
Investment direction, investment priority, potential market opportunities in other relevant diversified areas.
2. Financing strategy
(1) Securities financing;
(2) international financing;
(3) self-accumulation financing;
(4) Credit financing, etc.
3. Financial management
(1) Fine finance: financial work is required. It is necessary to be clever in calculation, use every penny well, strive for the minimum input to obtain the maximum output, support the competitiveness of products in the market with low cost, and maintain the vitality of the enterprise with high efficiency.
(2) Prudent finance: Adhere to a conservative financial policy to reduce financial risks to the lowest level. Do a good job in project feasibility analysis, seek truth from facts, and strictly check the gates. We will never pursue short-term economic interests at the expense of long-term interests. In particular, it is necessary to manage cash flow well and have sufficient cash reserves at all times.
(3) Strategic finance: carry out financial management from a strategic height, introduce a strategic financial analysis system, conduct strategic financial analysis regularly and irregularly, and report the analysis results to the company's senior management in a timely manner.
(2) The relationship between corporate strategy and financial strategy
(3) The current situation of financial strategy - full body physical examination
(4) Business strategic objectives and financial objectives
(5) Financial strategy to achieve corporate goals
2. How to be a good CFO
(1) The necessity of the establishment of a CFO
(2) The qualities that a CFO should have
1. Moral quality
(1) Integrity-based
(2) Dedication - love the factory like home
(3) Maintenance Secrets
(4) Be proactive, etc
2. Knowledge quality
The financial management of the company's financial director requires a lot of economic business processing and professional judgment, and every company hopes that the financial director they hire has the professional ability of accountants, management accountants and certified public accountants, so the company's financial director mainly has the following requirements in terms of professional quality:
1. Comprehensive and systematic knowledge of finance, accounting and auditing
2. Rich knowledge of company management
3. Comprehensive knowledge of economic law
3. Professional quality
(1) Treat the boss: respect the leader's decision, welcome the leader's guidance, care about the leader's difficulties, do their own work, etc.;
(2) Treat subordinates: help and support, discover the strengths of subordinates, give subordinates opportunities, stimulate the enthusiasm of subordinates, help them achieve goals, etc.;
(3) Treat the company: perform the contract and keep the secret;
(4) Treat relevant departments: collaboration, financial support, help them understand the relevant content of finance - do a good job in budget management, financial analysis and early warning, etc.
4. Ability and quality
(1) Professional competence (effective combination of knowledge and practice)
(2) Leadership ability (the ability to foresee future trends, the ability to communicate with superiors and subordinates - understand the work content, requirements and goals at all levels)
3. The CFO's ability to respond
If a CFO only has these skills, he can only be a good financial manager or treasurer, which is not as good as the requirements of a company's CFO.
In addition to handling day-to-day financial control and coordinating financial relationships, the CFO of a company also has one of the most important matters:
Participate in the formulation of the company's strategy, and formulate a financial strategy that serves the company's strategy according to the company's strategic needs, strategically lead the company's financial work, enterprise strategy finance, and integrate the company's own resources.
(1) Insight into the changing trend of the business environment
1. Look from the outside
(1) The market competition is fierce and the profit margin is small
(2) The market economy is gradually maturing, and the difficulty of operation has increased
(3) Financial laws and regulations are gradually standardized (especially tax law, accounting law, etc.)
2. Look from the inside
(1) The scale of the enterprise is gradually increasing
(2) The scope of cost expenditure is gradually increasing
(3) The scope of use of funds has been increased
(4) The accounting requirements are getting higher and higher, and the role of management accounting is gradually revealed
(5) The scope of financial management is gradually increasing
(2) Insight into the changing trend of operation and management
1. The enterprise has changed from extensive management to refined management
2. Change from external constraints to self-restraint
3. Enterprises have changed from material form management to value form management
4. Enterprises extend from internal capital management to external funds (capital market)
Fourth, the characteristics of excellent managers
Source: Times Chinese Business CFO Class - "Corporate Financial Strategy" and "How to Become a Good CFO" course notes
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The opening report of the enterprise diversification strategy, the opening report: financial risk and prevention - the risks and preventive measures faced by the financial management of Beijing Chitong Company1. Title of the opening report: Financial risk and prevention of risks and preventive countermeasures faced by the financial management of Beijing Chitong CompanyReporter: * April 2, 2013 I. Literature review Financial management objectives are one of the core issues of finance. The goal of financial management is the desired result of the financial management activities of the enterprise, and it is the basic standard for evaluating whether the financial management activities of the enterprise are reasonable. It is the guide of the financial management activities of the enterprise, and it determines the behavior mode of the financial management subject. It is important to establish reasonable financial management goals, both theoretically and practically. In recent years, mainland financial scholars have also tried their best to explore, and strive to find a place that can not only meet the internal requirements of financial activities, but also connect with the national financial management objectives, and meet the requirements of the economic interests of various economic parties of the enterprise, so as to achieve the financial management objectives of mainland enterprises. on this
2. Review the development of financial management objectives to point out the development trend of financial management objectives. According to the available information, the main expressions of financial management objectives are as follows: 1. The goal of profit maximization was formed and developed from the beginning of the 19th century, and its origin is Adam Smith's theory of corporate profit maximization. Some scholars have clearly put forward that "using profit maximization as the overall goal of corporate financial management is an objective choice" (He Qingbo and Xing Jianping, 1998), and "the complete expression of the management goal of state-owned enterprises should be: the pursuit of profit maximization on the basis of fulfilling sufficient social responsibilities" (Qi Huaijin, 1999). It makes sense to maximize profits as the goal of financial management. On the one hand, profit is the source of enterprise accumulation, and profit maximization provides a reliable source of enterprise operating capital; on the other hand, profit maximization not only satisfies the owners to increase private wealth, but also maximizes social wealth. However, with the commodity economy
3. Development, the organizational form and management mode of the enterprise have undergone profound changes, the owner management is gradually replaced by the management of the employee manager, and the interests of the enterprise are diversified, in this case, profit maximization as the financial management goal of the enterprise is not appropriate. This is not only because the concept of profit maximization is vague and does not reflect the proportional relationship between profits and invested capital, but also because even if profit maximization is achieved, if the reasonable interests of various stakeholders are not taken into account, it will affect the source of future business capital. 2. Maximizing net present value At the end of the 40s of the 20th century, the Western financial community began to pay attention to the effective allocation of capital within enterprises and the role of enterprises in the capital market. With the publication of Giordian's Capital Budget in 1951, the financial community began to discuss how to allocate financial resources among various types of assets in order to increase the net present value of cash flows. If the net present value of all the investments of a company is the most
4. Large, the net income of the enterprise will be the largest. Only then can capital be maximized. Therefore, the maximization of present value was regarded as the goal of corporate financial management at that time, which considered the impact of time value on the effect of capital appreciation, which was obviously better than the profit maximization goal, but fundamentally overcame the shortcomings of the profit maximization goal. 3. Maximizing earnings per share In the 60s of the 20th century, with the gradual improvement of the capital market and the continuous development of joint-stock enterprises, the maximization of earnings per share has gradually become the financial management goal of Western enterprises. There is also the concept of invested capital, which is the amount of income obtained by a unit of invested capital (per share, not per yuan) within a certain period of time, which fully reflects the proportional relationship between capital investment and capital appreciation, but this goal fails to reflect the risks faced by capital investment, and second, it does not consider the market price of the stock according to the dividend policy of the enterprise
5. Impact. If the goal of the business is only to maximize earnings per share, the company will never pay dividends. 2. The purpose and significance of the topicSmall and medium-sized enterprises are an important part of the national economy and play a pivotal role in promoting economic development and social stability. However, due to factors such as the small scale of output, the low composition of capital and technology, and the great influence of the traditional system and the external macroeconomy, small and medium-sized enterprises have a situation in which their financial management is not suitable for their own development and market economy. It is necessary to attract the attention of all parties and study countermeasures to promote the reform and development of the mainland Beijing Chitong Company. For a domestic security industry, Chitong has experienced 12 years of development, but it is still in a state of rapid development. This is inseparable from the characteristics of their own business. 12 years of development for security, has experienced the baptism of wind and rain. It is still in the top few of the security industry. However, there are also problems with their own enterprises. In recent years, the mainland Beijing Chitong
6. The company has developed rapidly. However, a considerable number of Beijing Chitong companies simply pursue sales and market share, ignoring the core position of financial management, and the management thinking is rigid and backward, so that the role of enterprise financial management and risk control has not been fully utilized. Due to the impact of changes in the macroeconomic environment and the system, Beijing Chitong Company has encountered obstacles in strengthening financial management. For example, policy "discrimination" prevents Beijing Chitong from competing fairly with large enterprises; the intervention of local government industry management departments makes Beijing Chitong's financial management goals short-term; and financial management is excessively influenced by enterprise operators. Beijing Chitong company, at the forefront of the security industry, more than 300 employees, the main product is security alarm, in the country has three security brand enterprise diversification strategy of the opening report, night wolf security is one of our brands, night wolf is one of the top ten brands in the security industry. It has been profitable. 3. Study the economic system of the mainland economy
7. In the process of further deepening reform and the increasingly mature market economy, small and medium-sized enterprises have sought survival and development in the fierce market competition by virtue of their own flexible organization, flexible operation, strong market adaptability and other characteristics, and have achieved good results. However, there are also some small and medium-sized enterprises that are gradually declining or even declining in the tide of market economy. The reason for this is that the owners of small and medium-sized enterprises themselves have a low overall quality and are influenced by traditional thinking, so that the inherent stubborn diseases of small and medium-sized enterprises have not only not been cured radically, but have been exposed more vividly and vividly along with the expansion of enterprise development and business activities. Among them, the confusion and ineffectiveness of the internal financial management and control system of the enterprise are the key to the rise and decline of small and medium-sized enterprises. It should be noted that the small and medium-sized enterprises discussed in this article refer to enterprises of various ownership systems and various forms of production and operation that belong to small and medium-sized enterprises, because private enterprises occupy a considerable proportion of small and medium-sized enterprises
8. Therefore, this article focuses more on the discussion of private enterprises. 4. Schedule 1, preliminary research stage: around the theme of the paper, collect and consult a large number of relevant theories, laws and policies, investigate the existence of problems and unreasonable problems, carefully read and deeply understand and summarize the collected materials and information, and list a series of specific questions and thinking answers. 2. Thesis proposal stage: On the basis of the previous research, the next stage of the dissertation can only be entered after completing the proposal report including the following aspects and conducting the defense: 1) the background of the research topic, 2) the purpose and significance of the research topic, 3) the research plan to be adopted for the research of the topic, 4) the expected goal of the research of the topic, 5) the planned progress of the research of the topic and the outline of the thesis to be completed. 3. Formal writing stage: According to the proposal report, complete the writing of the thesis at this stage. Among them: 1) March 27 to April 30
9. The day is the first draft writing stage of the paper, and it is required to report the work progress and scientific research writing results and answer questions every week. Before May 1, submit the first draft of the paper to the supervisor for review. 2) May 1st and May 3rd: During the review of the first draft of the paper, the supervisor will do supplementary research work on his own. 3) Write the second draft of the paper on May 4 and May 20. Revise according to the feedback from the supervisor, complete the writing of the second draft of the paper, and submit it to the supervisor for review and exchange suggestions for further improvement. 4) Write the third draft of the paper, which is the final draft, on May 21 and May 30, and submit the final draft of the paper to the supervisor before May 31. After that, the preparation for the defense of the graduation thesis is carried out, and the thesis is printed and bound according to the regulations, and the defense outline is prepared. V. Outline Writing 1 Introduction 1.1 Origin and Significance of Topic Selection 1.1 Research Background 1.2 Research Significance 1.2 Literature Review 1.3 Research Methods and Research Content 2 Overview of Financial Management Theory 2.1
10. Problems that should be paid attention to in financial management objectives2.1.1 The starting point of the study of financial management objectives2.1.2 The structure of financial management objectives2.1.3 The evaluation indicators of financial management objectives2.2 The development trend of enterprise financial management objectives3 The risks faced by the financial management of Beijing Chitong Company3.1 Lack of national policy support3.2 Serious shortage of funds3.3 Weak awareness of financial management3.4 Imperfect financial system of enterprises3.5 Confusion in enterprise asset management4 Preventive measures for the financial management risk of Beijing Chitong Company4.1 Strengthen the awareness of financial management and give full play to the relevant functions of financial management4.2 Standardize the employment mechanism of financial management personnel and improve the overall quality of financial management personnel4.3 Accelerate the construction of enterprise financial informatization4.4 Establish a financial risk early warning mechanism and improve the financial risk control system4.5 Formulate and improve the development of Beijing Chitong Company
11. Policy 4.6 Strengthen capital management and financial control4.7 Simplify the financial accounting report of Beijing Chitong Company4.8 Strengthen the construction of financial and accounting personnel and standardize the accounting order of enterprises Conclusions Thank you for your reference 1 Luo Jianhua. Under the existing management model of bank credit fund scheduling, J. Enterprise Economics,2011(11):19-232 HE Hongguang. Research on Investment and Financing of Private EnterprisesJ. Henan University, 20083 Fei Shujing. Financial Management StrategyJ. Economic Management Press,2005:46-634 (in Chinese) Do a good job in financial managementM. Kunming University of Science and Technology Press,2007:19-235 (in Chinese) Problems and Countermeasures of Financial ManagementJ. Now Audit and Economics, 2011(6):20-276 Robert Heathridge. Xu Yuanyi's opening report on corporate diversification strategy, Small Business Big Strategy M. Shanghai People's Publishing House,2006:78-837 National Bureau of Statistics.Impact of Rising Production Costs on Small Industrial EnterprisesJ. Hot Spot,2011(12):103-1078 Wang Jingtian. Innovation & FinancingM. Shanghai University of Finance and Economics Press,2011:156-1599 (in Chinese) Financial Management Problems and Model InnovationJ. Frontiers,2012:245-25210 (in Chinese) Challenges in the new stage and transformation of development mode Economic Frontiers, 2011(4):12-19 VI. Instructor's OpinionsInstructors: YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY