From the Perspective of Internal Control, Small and Medium-Sized Enterprises Financial Management Risk Research

Abstract

As an important driving force of social and economic development, small and medium-sized enterprises play a huge role in promoting employment, stimulating innovation and increasing economic vitality. However, with the increasing changes of market economic environment, SMEs are facing new opportunities and challenges.  SMEs have problems in the internal control design and implementation, which can lead to financial management risk in practical operation. Financial risks will not only threaten the survival and development of SMESs, but also affect on the stable and healthy operation of the national economy. From the perspective of internal control, this paper analyzes the status quo of internal control of SMEs, explores the risks of financial management, and puts forward solutions, in the hope that SMEs can reduce the potential risks of financial management by improving the effectiveness of internal control.