Research On The Optimization Of Financial Internal Control Of LY Company In Small And Medium-Sized Enterprises

Internal control is originated from abroad.After the Reform and Opening-up,with the rapid development of Chinese economy,more and more entrepreneurs come to realize the importance of internal control,and begin to build the internal control system and improve it.In addition,they apply the basic principles of internal control to the corporate modernization,and are committed to using the limited resources of enterprises more efficiently.Financial internal control,as the core of internal control,has also received unprecedented attention and development.At present,there are still many defects and deficiencies in the financial internal control of small-and medium-sized enterprises(SEMs)in China.Some small-and medium-sized enterprises owners have not established financial internal control,while others have established financial internal control,but most of them become formalized.That’s why it is difficult for the financial internal control to play its due effect.Therefore,focusing on the construction and implementation of financial internal control,organically connecting financial internal control with enterprises’ development,and using the theory of financial internal control to guide the modern management of enterprises has become a subject of practical significance.Taking LY Company as an example,this paper analyzes the industry attribute of LY Company as well as the causes of financial internal control,investigates the basic current situation of LY Company,and then puts forward constructive opinions by integrating theory with practice.Firstly,through a lot of reading and research on the literature of internal control and financial internal control,this paper expounds the relevant theories of internal control and financial internal control,forms a literature review,and lays a theoretical foundation for the later research.Secondly,based on the field understanding of the basic situation of LY Company,this study takes the five elements of financial internal control as the basic framework,and analyzes the basic situation and existing problems of financial internal control of LY Company.Furthermore,according to the framework of five elements,the paper analyzes the causes of the problems existing in the financial internal control of LY Company,mainly including the lack of attention to the financial internal control,the failure to improve the quality and ability of financial personnel,the weak awareness of risk prevention,the wrong understanding of budget control,the lack of effective internal supervision mechanism,the low degree of informatization and poor communication.Finally,the this paper puts forward optimization suggestions,including establishing a good internal environment,formulating the training mechanism,reward and punishment mechanism of financial personnel,strengthening risk management,building a comprehensive budget management,enhancing information exchange and communication,and establishing an internal supervision mechanism.In the research process of LY Company,s financial internal control,the important role of financial internal control in the operation and management of enterprises can be seen clearly.At the same time,it’s a good reference for small and medium-sized enterprises with similar problems,which will help enterprises do a good job in modern management and promote the better development of small and medium-sized enterprises.