Financial Management Village

Rural issues is the focus of building new socialist countryside and building a harmonious society, and financial problems in rural areas is the key to rural issues, so rural construction and management, particularly village-level financial management has become an important basic work for rural areas. And meanwhile, village-level financial management is one of the most sensitive and difficult problems in rural areas, which matters to the vital interests of the masses and to reform, development, and stability of rural areas. Village-level financial management, which is an important part of the rural economy, refers to accounting, planning, supervision and control of income, use, distribution and other financial activities occurred in all assets directly owned to village-level collective organizations.Firstly this paper overviews the history of China’s village-level financial management, and concludes four modes of village-level financial management: independent financial management mode, accountant appointment financial management mode, village account supervised by township government financial management mode and village-level financial settlement center financial management mode. Then this paper analyzes existing problems and performs in running the four modes of village-level financial management by theory of centralization and decentralization, transaction cost theory, internal control theory and principal-agent theory which are related to village-level financial management. On this basis, the paper puts forward the following problems existing in running village-level financial management:Lacking enough attention to the rural financial management problems, low level of village-level financial management, unstable and low occupational quality accountants’ team, weak accounting foundation work and chaotic management system. Finally the paper puts forward countermeasures to improve the village-level financial management which include:Raising attention degree and unifying the masses in thoughts, establishing a democratic management mechanism and strengthening democratic management, stabilizing rural finance team and improving the quality of village-level financial staff, establishing and improving various rules and regulations to improve basic accounting work, implementing financial system strictly to put an end to illegal financial activities.