Small And Medium Enterprise Internal Control Optimization

The small and medium private enterprises have turned into an important economic force in China. During the development process over the past twenty years, the small and medium private enterprises have gone through the primary stage, and gradually enter the development stage. At last, the quantity finally turns into quality, the small and medium private enterprises leaps into the stage of ascension. Based on the developing change of enterprise business, operators gradually realize that the rule of men has not been suitable for the needs of development of enterprises during the more and more complex business practices. The development of enterprises should depend on the innovation of products, the leadership of technology and the market development. Although the products have been mature, the technology has been leadership and the market has been expanded steadily, both the low management level and the absence of the management inner the enterprise constrain the development and improvement of the enterprises, which has been a bottleneck to progress. In the present case, building and perfecting the internal control system is the inevitable choice. The internal control system is a dynamic mechanism, which is an organic unity consisting of a series of methods, programs and mechanisms, also can realize self-check, self-regulation and self-discipline.In China, the internal control system is the endogenous mechanism of enterprises, whose control function can protect the development of enterprises, so the system is very important for the development of the small and medium enterprises. However the absence of the internal control system is the weak link in the Chinese enterprises which should be reinforced in the management of the small and medium enterprises. Therefore, the scientific construction and the effective perfection of the internal control system in the small and medium private enterprises will increase the risk consciousness of enterprises, the ability to manage risk, core competence of enterprises, prolong the life-span of enterprises, and then improve the management level.The small and medium private enterprises have their own peculiarities, which determine the particular internal control system regardless of the program of the service operation system, organization structure and the corporation’s management patterns. At present, according to the laws and regulations (for the large-sized and medium-sized stated-owned enterprises, public companies) on the related on the internal control system, we can know that there is no the compulsory rules for the small and medium private enterprises. This kind of the national policy has an influence on the research directions and the research contents of the domestic scholars directly. From the domestic research results on the inner control system, a lot of literatures are about the internal control theory of large-sized and medium-sized stated-owned enterprises, public companies, the frame construction, the common practices and the specific practices. Because there are a lot of differences between the small and medium private enterprises and the large-sized and medium-sized stated-owned enterprises, so we can not apply the research results of the large-sized and medium-sized stated-owned enterprises on the small and medium private enterprises. Therefore, the lack of guidance and attention to the internal control system in the small and medium enterprises regardless of in the practice and theory is quite serious.Based on the above-mentioned analysis, this paper will summarize the academic achievements of the domestic and overseas scholars on the internal control system. The small and medium-sized private enterprises are chosen as the object of study from two aspects:norm research and case study. According to the investigations about the enterprises, we will collate the dates and find the main problems inner the private enterprises at this stage, and then analysis the reasons and propose the solutions to these problems. At the same time, based on the description about how we can learn from the domestic and overseas research achievements and the actual situation and characteristics of the private enterprises, we propose the idea that we should be oriented by corporate strategy; the key control management is risk managements at all levels; the control content is the key project processes through the case study of HT company, characteristics and practices of the private enterprises we described how to learn from the research achievements and theories of internal control at home or abroad. This idea is used to optimize the internal control system of small and medium-sized private enterprises. Enterprises should build a practical and operable internal control system and an effective internal control mechanism. This paper provides some ideas and reference for the enterprises to enhance management and internal control level.