October 19, 2021

What you should know about accounting management


1. Management of financing activities

The management of financing activities means the management of financial consolidation system the content on the right side of the balance sheet. Under the premise of the planned economy, the company's funds are paid by the higher authorities. In the market economy, the sales market provides the company with many ways to raise funds, such as issuance of shares, issuance of stocks, loans from banks, and leasing. What are the methods of raising funds and what percentage of funds are raised by each method? The management of capital raising is focused on the main sources of capital, the amount needed, the composition of new projects and the management of expenses.

2. Management of investment activities

The management of investment activities means the management of lan cable the left side of the balance sheet. There are many different ways to invest the funds raised by the company, such as investing in new projects, buying and selling stocks on the stock market, equity funds, debt instruments, etc. The management of investment activities is focused on the management of the direction of funds, the scale of operations and the composition.

3. Management of production and management

The management of production and management is the management of the capital in the operation of new investment projects. It includes the management of cash, inventory and accounts receivable.

4.Management of distribution theme activities

The management of distribution activities is the management of the distribution of funds after the company's profitability. It deals with how to allocate among users, which dividends to distribute, and how much to distribute. The decision of distribution is also the decision of investment, because if you distribute more, you will keep less, and if you distribute less, you will keep more, and the funds left behind will be the funds for the next cycle, so in this sense the decision of distribution is also the decision of raising funds, in other words, the decision of distribution is also the decision of raising funds. Therefore, some researchers think that allocation should be classified as fund raising management, and allocation decision should be classified as fund raising decision, and it is also clear that accounting management contains three parts, which is also a certain reason.

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