10 min read
29 May

Glass is an important building material and industrial raw material, which is widely used in construction, furniture, home appliances, and other fields. With the deepening of global economic integration and the continuous advancement of science and technology, the glass manufacturing industry faces many opportunities and challenges. In the fierce market competition, glass manufacturing enterprises need to continuously improve their competitiveness and seek new profit growth points. In this process, financial management, as one of the core management activities of the enterprise, can play an important supporting role in glass manufacturing enterprises.

1. The role and influence of financial management on glass manufacturing enterprises

Financial management is one of the core aspects of enterprise management, including financial planning, capital management, cost control, financial analysis, and other aspects, which play an important role and influence in glass manufacturing enterprises.

1.1 Capital management

Capital is the blood and lifeblood of enterprise operation, which runs through the entire lifeline of enterprise survival. Whether the capital can circulate normally determines the survival and development of the enterprise. Glass manufacturing enterprises have large daily capital income and expenditure, so capital management is of vital importance to glass manufacturing enterprises. It is specifically reflected in the following aspects. 

Firet, the implementation of capital management can help enterprises choose scientific sales collection methods according to capital needs and market environment. The operating funds of glass production enterprises are obtained through the sale of glass. During the sales process, if most of the sales are accounts receivable or acceptance bills of low quality, it will seriously affect the daily operation of the enterprise and be detrimental to the development of the enterprise. Financial management can ensure the security and liquidity of funds in the sales process through reasonable fund planning and management, prevent the enterprise from experiencing a fund crisis, and ensure the normal progress of sales activities. 

Second, the implementation of two lines of income and expenditure in fund management can improve the efficiency of funds in the turnover process, and improve the management ability of enterprise funds by implementing fund allocation and centralized collection, to achieve flexible use of funds and enhance the competitiveness of enterprises. 

Third, the implementation of fund management helps enterprises to reasonably plan the use time and payment methods of funds try to extend the payment time, improve the payment method, and reduce the cost of funds. 

Fourth, the fund management can help enterprises actively mobilize funds, strive for preferential bank policy support, and reduce the cost of funds. Through bank credit and affiliated company guarantees, enterprises can pay for goods by issuing bank acceptance remittance mode, or ensure that the enterprise has sufficient reserve funds through working capital loans, and strive for preferential bank interest rates.

1.2 Cost control

Cost is one of the important factors affecting the efficiency of enterprises. Cost control can effectively reduce costs and increase corporate profit margins by controlling and analyzing production costs and operating management costs. 

First, formulate a comprehensive budget plan based on historical data, production, and other key indicators, and revise it in a rolling manner during the budget execution process to help companies rationally allocate resources and optimize cost structure, to optimize costs while ensuring budget costs. 

Second, integrate the cost and expense data of each department, and propose improvement directions through horizontal and vertical analysis and comparison.

Third, supervise the completion of various indicators in the production department.

In short, glass production companies have high labor costs and complex performance calculations. The implementation of cost control can provide auxiliary support for the salary accounting of the human resources department.

1.3 Financial analysis

Financial analysis is very important in all aspects of the enterprise. First, it provides a basis for corporate decision-making. Financial analysis provides corporate managers with a reliable basis for the company's financial status, operating results, and operating risks, which helps corporate managers make scientific and reasonable production investment decisions, financing decisions, etc. at different stages. For example, financial analysis can help companies find differentiated products and improve product profit margins. 

Second, it can identify risks and solve problems. Through data analysis, potential business and financial risks of enterprises, such as liquidity risk, capital security risk, credit risk, inventory risk, etc., can be discovered in time, and measures can be taken in time to avoid them. 

Third, financial analysis is conducive to optimizing resource allocation and improving the competitive advantage of enterprises. Financial analysis can help enterprises understand their own financial status and operating performance, optimize resource allocation, improve their competitiveness, improve operational efficiency, and thus enhance the comprehensive strength of enterprises. 

Fourth, in the sales link, financial analysis can monitor and evaluate the sales process, discover problems and risks in time, and provide a basis for the adjustment and optimization of sales strategies, such as helping the sales department to identify high-quality customers.

1.4 Risk Management

Risk management can help enterprises identify and deal with capital risks, market risks, raw material price risks, exchange rate risks, etc. in the daily operation and management process, reduce the probability of risk occurrence, and protect the interests and safety of enterprises. 

On the one hand, risk management can help enterprises identify and monitor capital risks, especially for sales collection, risk management is crucial to the management of capital security. 

On the other hand, risk management can help enterprises, based on the actual situation of the enterprise, to compile flexible and diverse process specifications suitable for the development of business departments and establish a sound internal control system while understanding the business processes of various departments. In addition, risk management can eliminate and reduce interest rate and exchange rate risks by actively using financial instruments.

In summary, financial management plays an important role in glass production enterprises. How glass production enterprises can effectively play the role of financial management, how to provide more data support in supervising and standardizing business processes, and improve sales efficiency and profitability are issues that glass enterprises urgently need to solve.

2. The current situation and problems of financial management in glass production enterprises

There are the following problems in the actual application of financial management in glass production enterprises.

2.1 Fund management needs to be further improved

Glass production enterprises have complex processes, a wide range of categories, and high requirements for scientific and technological levels, which put forward higher requirements for financial management in terms of fund investment, allocation, and management, but there are some problems in actual management.

First, the level of financial personnel in the actual management of enterprises is limited, which weakens the overall control effect of funds to a certain extent, resulting in inadequate supervision and management of funds. 

Second, there is a lack of awareness of the planning of funds and a short-term vision. Some enterprises lack a sense of crisis when they have sufficient funds, and only think of financing when there is a shortage of funds. 

Third, the plan for dealing with sudden changes is not sound. Financial management will plan annual and monthly funds, but special circumstances may occur in the actual management of income and expenditure, and the formulated response strategy cannot play a role.

2.2 Ineffective cost control

Due to the industry particularity and complexity of the production processes of glass production enterprises, the shortcomings of financial management in raw material costs, labor production costs, manufacturing costs, etc. are more likely to be manifested. The reason is that some enterprises have little production practice, do not have a deep understanding of the process flow, and the standard data and business processes provided deviate from the actual production. 

Second, production data is not obtained in time, cost analysis is delayed, and lacks timeliness. Some enterprises refer to historical data and budget data provided by various departments when preparing budgets, but the data provided by the departments are inaccurate and the ability of financial correction is limited. At the same time, the cross-checking analysis is not in place when summarizing, integrating, and integrating the data of various production stages, resulting in problems in cost control. 

Third, the knowledge of some corporate financial management personnel is limited and the focus is not complete, which is mainly reflected in the cost and expense audit. If you are not sensitive to market prices, do not pay attention, or are not familiar with the characteristics of the industry, you cannot accurately control when auditing business documents, which will bring losses to the company.

2.3 Inadequate risk management

Some glass manufacturers are not timely and flexible enough in dealing with market changes and risks, resulting in large fluctuations in the performance of glass manufacturers. 

First, some risk financial system controls are missing. In actual operations, some companies will have multiple contracts and multiple settlement methods for the same customer at the same time, and the informatization of financial management has not solved the problem of using the financial system for control. 

Secondly, they are not sensitive to related suppliers and customers, and their identification ability is insufficient. The related relationship increases the price pressure and cross-selling risks of the company's business, resulting in insufficient financial management monitoring. 

Finally, some companies only focus on appearance, but cannot see the real problems behind the appearance, and do not pay enough attention to risks. For example, the financing cost of equity financing of some companies is very low, and there is no need to worry about the capital cost. Companies tend to ignore the risks behind it.

2.4 Financial information is not timely and asymmetric, and data sharing is insufficient

The financial information of some glass manufacturers is not timely and accurate, and the support and guidance for corporate decision-making are insufficient. Due to their knowledge limitations and their professional knowledge of the glass industry, financial personnel are not sensitive enough to the financial information of glass manufacturers. However, the demand for financial data by managers and production personnel cannot be fully understood by financial personnel, and most non-financial personnel have limited knowledge of financial knowledge, which leads to an asymmetry between information demand and output information, and cannot fully share the favorable information brought by financial data. The financial management of glass production enterprises has deficiencies and limitations, which to a certain extent hinders the improvement of corporate benefits and profitability. Therefore, it is necessary to conduct a comprehensive review and improvement of the financial management of glass production enterprises.

3. Strategies for glass production enterprises to strengthen financial management

3.1 Strengthen financial planning and capital management

Based on the particularity of the industry, glass production enterprises should increase financial planning, improve capital structure, broaden financing channels, and reasonably allocate funds. Faced with the special requirements of the glass industry, glass production enterprises should formulate reasonable financial plans for financial management, including capital planning, cost control, internal control system, inventory management, production, and sales balance analysis, financial statement analysis, etc., to provide strong financial support for corporate decision-making. 

First, optimize the capital operation process, strengthen the budget and management of capital demand, pay special attention to the budget management of capital matching, and reduce the cost of capital occupation. 

Second, strengthen capital management and improve capital structure. Glass production enterprises can take measures to shorten the capital turnover cycle and improve the efficiency of capital utilization. The payment methods of general enterprises will be adjusted according to different prices. For example, when glass manufacturers collect acceptance bills, the unit price per ton will be increased by 20 dollars to 50 dollars based on telegraphic transfer. Financial personnel should, based on payment needs and market environment, control the cost of funds while ensuring that they collect as much as possible telegraphic transfers and pay as much as possible acceptance bills to reduce the cost of funds. 

Thirdly, pay attention to the favorable policies of banks, increase the integration of high-quality funds, and strengthen capital scheduling. For example, in terms of acceptance bills, glass manufacturers should comprehensively consider the cost of funds, leave some short-term due bills for enterprises to discount, and use banks to issue full-term bills to pay suppliers, saving the cost of funds for enterprises.

Finally, glass manufacturers should make full use of financial instruments and financial information, make full use of the floating characteristics of interest rates and exchange rates, and ensure maximum benefits while reducing risks.

3.2 Strengthen cost control

Glass manufacturers have complex production processes and high technical requirements, so cost control in any link cannot be relaxed. 

First, enterprises should arrange cost control personnel to go to the production site to familiarize themselves with the production process. Only through practice can problems be discovered and solved, and data analysis can be practical. 

Second, enterprises should implement comprehensive budget management methods, formulate and implement various improvement measures, and decompose production tasks and cost assessment indicators in each production workshop. Taking a glass production enterprise as an example, the group has formulated strict cost assessment standards, and each subsidiary has decomposed the standards to each department and each production stage. The leaders of each department sign a performance achievement responsibility letter, conduct monthly assessments according to the indicators, and summarize, compare, and analyze them every year. 

Third, enterprises should adhere to refined management and reflect cost reduction and efficiency improvement in all aspects of production and operation. Glass production enterprises should adhere to the principle of "cost reduction and efficiency improvement" to increase corporate benefits and promote the long-term development of enterprises.

3.3 Strengthen risk management

Glass production enterprises should strengthen the identification and management of market risks and operating risks, establish a complete risk management system, and conduct risk assessment promptly by discovering risk sources early, to adopt corresponding monitoring methods and control measures. 

First, financial personnel can improve the stability and scientificity of financial decisions by establishing internal control systems and strengthening financial audits and risk assessments. 

Second, enterprises can analyze historical data and market research data, propose risk points identified by finance, and strengthen monitoring as the focus of daily operations. 

The third is to standardize business processes and strengthen risk control in daily operations. 

The fourth is to implement multi-level approval and review. At this stage, large glass production enterprises have formulated internal control management systems. They can formulate more stringent multi-level approval systems, supplier access systems, customer credit systems, etc. according to the nature and amount of business, strengthen risk control from multiple internal and external links, and ensure the financial security of the enterprise by taking effective risk avoidance and hedging strategies.

3.4 Improve the level of financial informatization

The financial management of glass production enterprises faces the difficulties of large amounts of data and complex analysis. The products involve many standards and different cost structures, which are difficult to calculate. To this end, on the one hand, enterprises should improve their financial management capabilities and levels by strengthening the training of financial personnel; on the other hand, enterprises should increase the intensity of informatization construction, conduct data analysis from multiple angles and directions, improve the timeliness, accuracy, pertinence, and versatility of financial information, and provide a reliable basis for enterprise decision-making.

In addition, due to the industry particularity of the glass production industry, glass production enterprises should strengthen communication and learning between departments and conduct more exchanges of special knowledge. If the enterprise has sufficient objective conditions and capabilities, it can implement a job rotation system and strengthen mutual training. Financial personnel must be familiar with production technology, production processes, workshop management, and sales knowledge to provide accurate and effective data support for various departments.

4. Conclusion

This article discusses the current situation and strategy of financial management of glass production enterprises. By analyzing the role and influence of financial management in glass production enterprises, it is found that financial management plays an important supporting role for glass production enterprises. At the same time, it is also found that there are some problems and deficiencies in the financial management of glass production enterprises. In this regard, this article proposes suggestions such as strengthening financial planning and capital management, strengthening cost control, improving the level of financial informationization, and strengthening risk management. It is hoped that the research in this article can provide some useful inspiration and reference for glass enterprises, provide certain help for improving corporate benefits and profitability, and enable enterprises to enhance their ability to cope with various challenges, thereby achieving sustainable development.

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