The Comparision And Research On The Chinese And Western Financial Control

Financial Management is a sub-system of the Company Management. As a significant branch, its management quality can directly influence the company's development. This article in the comparison of West-East Financial Control, aims at enhancing Chinese company's adaptability and competitive power through learning other's strong point and redressing our own weak points.The western scholars actually differ with the meaning of the Financial Management in many places. Having analyzed their theories, we can define the Financial Management as a Process during which the financial operators manage the company financial activities from the angle of "Value" by manipulating the Decision-making, Planning, Control and other specific management functions.Financial Control is the control of the company's financial activities, namely the control of Company Capital obtaining, putting in utilization and distribution. To effectively implement the financial control, every accountability unit should clearly know its responsibility bound, also known as the "responsibility center". Cost control is the indispensable part in financial activities. Cost control is required to increase company profits, withstand the pressure inside and outside.The comparison on the Chinese and western financial control development could offer a measurable help to consummate our country's company financial control. The counter-measures to consummate our country's financial control can reinforce the financial strategy control; intensifying the corporate culture construction, carrying out the many-bearing control by the means of financial net, perfecting the accountant procedures.In the market economy system, to boost the company profit, and to build up the company's vital force, the very way is to strengthen the cost control. Nowadays there are many problems relating to the cost management, we should learn from the experience drawn by the western countries," safety first, benefit second" is always the principle for the high-risk industry. The ultimate aim of the cash control is to guarantee the safety and effectiveness of the cash income and expense, and the policy corresponding to which should be the cash management centralism exercised by western countries but not the Unitarianism adopted by many state-owned company in China.On capital structure there is a distinctive discrepancy between China and western countries. Most Chinese companies raise fund through issuing more share stocks, while the western companies give priority to the stock ownership capital other than the debt capital. To control the investment risk, western companies usually hold in the capital by the stockholder, while in china, the capital in moderate and big state-owned companies is public-owned which to some extent seems like a government function. So it is impossible to be fully market orientated. Optimizing the capital ownership structure is to accelerate the reform on the ratio of the state capital and non-state capital. Chinese and westerners. The western companies overweight even the solvency core than the profits. But in china, many companies still lack the deep insight into the solvency problems.After our WTO entry, with the incoming change of the environment, contents, target, theories & methods, working mode, organization structure in financial management, Chinese financial control is expected to be further consummated and perfected. How to positive face the challenge posed by WTO? How toenhance our financial people's adaptability to international environment? The best way is to carry out the correct and effective long-term financial control system and to build up a perfect company financial warning system.