Research On The Financial Management Of University-run Industry

Since the reform and openness, people’s thought has become much more liberalthan in the past. With the continuous development of market economy and deepeningof educational reform in China, colleges and universities across the country set upuniversity-run industries related to college teaching, research, and logistics servicesaccording to their own conditions. At present, university-run industries have beenplaying an increasingly important role in promoting scientific achievementstransformation, improving the quality of logistics services, and supplementing collegefunds. They not only make a contribution to the construction and development ofuniversity disciplines, but also play a key role in tax revenue increase andemployment promotion in China. However, some problems have arisen in thedevelopment process for university-run industries. These problems, if not promptlytackled with, will threaten the stability and sustainable development of university-runindustries, or even endanger the development of higher education.This paper examines the financial management status of a specific university-runenterprise, namely HH Company, and puts forward some of the problems thatcurrently exist for university-run industries. For instance, unclear financialmanagement methods, unclear property rights, imperfect accounting system, weakinternal controls, lagged financial analysis, and lack of evaluation system foruniversity-run industries. By examining the above issues of financial management,this paper aims to search for more effective and scientific financial managementmethods for university-run industries.