Problems in Financial Management of Small and Medium-sized Enterprises

In recent years, with the gradual improvement of China’s market economy system, Small and Medium-sized Enterprises (SME) have developed rapidly. At present, SME have become an important force in supporting China’s economic development, solving employment problems, increasing national fiscal revenue, developing high-tech, and maintaining social and economic stability. In the development process of SME, financial management plays a crucial role. However, due to the small scale, weak production technology capabilities, and lack of funds of many SME, their development is in conflict with the economic development of the market, which to some extent increases financial risks. This article would conduct an in-depth analysis of the financial management problems faced by SME in China, and provide corresponding solutions to make their financial management methods more perfect, thereby occupying a place in the fierce market competition and maintaining harmonious and stable development. After investigation, it was found that 21 SME had very weak risk awareness, accounting for 42% of the total. SME faced problems such as insufficient funds, low talent quality, unreasonable investment strategies, and weak financial risk awareness. This article analyzed the corresponding strategies and started with strengthening the construction of the financial and accounting team, improving the quality of all staff, and strengthening the adoption of scientific investment strategies to alleviate the problems in financial management.