Some ideas on financial management of software companies

I recently saw some internal financial statements at a company's strategic seminar. I am deeply touched by the fact that, although I am a software developer, I am here to put forward my personal thoughts on the company's financial management, it's just a casual remark by Lu renjia. You don't have to take it seriously.

A software company is generally a steady and steady software development supplier. It does not have speculative business. Financial policies should be prudent and should keep enough cash reserves, especially in the global financial turmoil, cash is king, and cash is the basic survival data for the winter. Currently, it is impossible to determine when the financial crisis will pass, but it is a conservative but safe practice to regard it as a long ice age. At this time, throttling becomes a very urgent task.

Sun Tzu's Art of War said: "Every day is worth a thousand yuan, and then the 100,000 Division will take it ". The company has now grown to hundreds of employees, renting a large area of office space in the main city, radiating multiple offices, and paying taxes, employees' salaries, site rents, administrative expenses, and so on every month, although not every day, but it also consumes an astonishing amount of money, the company is still in a balance that is not stable. Assuming that the company's revenue decreases sharply, I don't know how long the company's cash reserves will support it.

I recently worked on a report project for a state-owned enterprise. I often heard that the accounting staff of this enterprise complained about a huge loss this year, while some people also said that the company was insolvent, but the State-owned Assets Supervision and Administration Commission injected billions of dollars into it at this time, because it is a state-owned enterprise. However, ordinary companies are private enterprises that are solely responsible for their own profits and losses. If the company is insolvent, who will inject capital into the company?

It can be said that "the money, the company's major events, the place of life and death, the survival of the way, can not be ignored ". Cash is the blood of the company. No matter how strong a person is, if there is too much blood loss, it is undoubtedly determined by the basic physiological characteristics of the human body. If a company of a certain scale does not have enough cash, it is also fierce, which is determined by the basic characteristics of such social organizations. Such objective fact rules are not transferred by the will of a person. Therefore, cash is so important for the company. Even if the company has a strong capital, it cannot waste a cent. Otherwise, a leap may occur, and it will be destroyed by the ant site.

The financial management department is dedicated to the financial approval work, taking care of the company's cash. The work is nothing outstanding, but it is the patron saint of the company and the bottom line of the company, its implicit authority cannot be challenged. Therefore, it is recommended that company leaders clearly declare the position of the Financial Management Department throughout the company. The financial management department has a small scope of responsibility, but should be invincible within its scope of responsibility. This also imposes demanding requirements on the sense of responsibility and loyalty of Financial Management Department members, and has a slight impact on the overall balance and harmony of the company.

The body temperature reflects the health status of the human body, and the body temperature is usually elevated when the body is ill. However, the company's cash receipts and payments are the company's temperature. Problems in the company's operations will soon lead to exceptions in cash receipts and payments, which is a general rule. Therefore, the market and finance fronts are the two origins of industry leaders, because financial experts can use financial data to quickly determine whether the company's operations are normal, skilled in using various financial analysis techniques to precisely locate the company's operation problems. Financial personnel can easily make a financial statement to reveal some problems in the company's operations. This may be because my personal cost concept is heavy and I have some resonance.

we recommend that you strengthen the cost concept of all employees, especially frontline employees, the so-called "don't know whether the firewood is expensive", usually communicate with others, if someone is doing decoration at home, then he can elaborate on the price, quality, and labor cost of decoration materials, as he is a "family member ". Similarly, if an employee has a sense of "being a house" in the company, for example, there is a strong concept of cost. However, how the company brings a sense of "being a house" to the employee is beyond my personal thinking ability, no constructive comments are allowed.