What is the financial system? What is included?

Financial management system refers to: financial foundation setting, financial budget system, financial accounting system and financial statement system. Only by integrating business processes and financial processes, clarifying the operational responsibilities and processes of all parties, and standardizing financial and business operations can the management efficiency of enterprises be effectively improved.

The financial management level of the company should match the development stage of the company. Whether the financial management level is ahead or behind the development stage will restrict the development of the company.

Specifically, the functions of financial institutions, the setting of financial institutions and posts, and the corresponding basic management system of financial accounting are all adjusted and optimized according to the development of the company.

Second,

The basic principles of financial management include systematic principle, cash balance principle, income risk principle and interest coordination principle.

Systematic principle means that financial management is a subsystem of the enterprise management system of each member of the group, and the enterprise management system itself is composed of several subsystems such as fund-raising management, investment management and distribution management.

Adhering to the systematic principle in financial management is the primary starting point of financial management, with three specific requirements. The first point is global optimization, and only a globally optimized system is the optimal system. The second point is structural optimization. Any system is a hierarchical system with a certain hierarchical structure. In the aspect of enterprise resource allocation, we should pay attention to the optimization of structural proportion and ensure the overall optimization, such as optimizing capital structure, asset structure and distribution structure. The third point is strong adaptability to the environment, and the financial management system must maintain appropriate flexibility to adapt to changes in the environment.

The principle of cash balance refers to the cash basis rather than the accrual basis in financial management, which objectively requires cash income (inflow) and cash expenditure (outflow) to achieve dynamic balance in quantity and time, that is, cash flow balance. The basic method to keep cash balance is cash budget control. Cash budget can be said to be a comprehensive balance of financing plan, investment plan and distribution plan, so cash budget is an effective tool for cash flow control.

The principle of income risk means that in the process of financial management, in order to obtain income, we have to pay costs and face risks, so costs, income and risks are always interrelated and mutually restricted. Financial managers must firmly establish the trinity concept of cost, income and risk to guide various specific financial management activities.

The principle of interest coordination refers to the fact that when an enterprise conducts financial activities, it cannot do without dealing with the financial relations with the owners, creditors, operators, employees, content departments, debtors, invested enterprises, countries (governments), the public and other stakeholders. From this perspective, the process of financial management is also a process of coordinating various interests. The success of interest relationship coordination is directly related to the realization of financial management objectives. National laws and regulations, enterprise contracts (contracts), articles of association and internal financial management systems are all norms for enterprises to handle financial relations.