On the relationship between reducing costs and improving economic benefits

Enterprises are profit-oriented economic organizations, and economic benefits are the ultimate comprehensive indicators to measure all economic activities. The low economic benefits of today's enterprises are mainly manifested in low product quality, high cost, serious waste and backward technology and equipment. The reasons (1) are external, mainly due to the influence of market economy, the increase of raw materials and freight, the high cost of equipment renewal and the increasingly fierce competition among enterprises; (2) From the point of view of human resources department, wages and expenses are increasing year by year, emphasizing speed, neglecting efficiency and neglecting cost. Talk about cost consciousness, slack cost management and rising cost index.

Whether it can improve economic benefits has become the key to the survival and development of enterprises. Generally speaking, the main ways for enterprises to improve economic benefits are: 1, accurate analysis, grasping market information, correct decision-making, correct investment, and making products marketable; 2. Improve product quality and strengthen publicity, so as to increase sales and promote currency recovery; 3. Buy new equipment, innovate technology, optimize production structure, reduce costs and improve labor productivity; 4, from within the enterprise, strengthen enterprise management.

The following points financial management, cost reduction and other ways to specifically talk about their role in improving economic efficiency.

1. Financial management is an activity to predict and analyze the management functions of an enterprise, such as business policy, financial objectives, cost control, financial security and financial improvement. It is the most important subsystem of enterprise management system and the center of enterprise management. The goal of its management is to maximize the wealth of enterprises; The management object is the circulation and turnover of cash; The main content of its management is the decision of investment and dividend. Therefore, strengthening financial management is a very important way for enterprises to improve economic efficiency.

Strengthening financial management mainly includes 1, strengthening fund management, 2, strengthening overall budget management, and 3, improving the use value of financial information.

1. Strengthening fund management can do the following: ① Strengthening investment management. First of all, we should do a good job in market research and analysis and make a good budget before investment; Fully consider the time value and risk degree; Accurately compare the investment return rate and financing cost rate of the project; Fully consider the solvency of enterprises and prevent blind borrowing. 2. Increase the efforts of currency recovery, debt settlement and sales, make products marketable, fix production by sales, and increase the preferential treatment of cash orders; Carry out "no payment, no delivery" to control the occurrence of new debts, formulate countermeasures and methods for clearing debts, organize all forces to urge payment through various channels and forms, reasonably control the amount of storage, effectively exert the efficiency of fund use, reform the fund management system, and implement centralized management, two lines of revenue and expenditure, and a system of unified collection and expenditure.

2. Comprehensive budget management is a systematic prediction of production activities, investment activities and capital operation activities of enterprises in a specific period in the future in the form of money or other measurement under the premise of fully studying and scientifically predicting market demand. It is a systematic management method, which is used to allocate financial, material and human resources of enterprises to achieve their strategic goals.

Comprehensive budget management plays a very important role in improving economic benefits. For example, operating results budgeting can promote income growth, reduce costs and ensure the realization of profit targets; Financial status budget can revitalize enterprise assets; The investment budget can grasp the total investment and the development direction of the enterprise in order to obtain the maximum investment benefit; Labor cost budget, you can master the personnel information and employment level of enterprises; Cash flow budget can grasp the cash flow information, reduce the debt and asset-liability ratio, balance the surplus and deficiency of funds, and improve the efficiency of capital utilization.

To strengthen overall budget management, it is necessary to establish and improve the budget management mechanism, strictly implement, control and adjust it, and establish an assessment, reward and punishment system.

3. Improve the use value of financial information. Financial information is also a very valuable resource, and the problems existing in all aspects of the enterprise are reflected in financial information. The use of financial information is conducive to finding and solving internal problems of enterprises and optimizing production and organizational structure. Financial information can also reflect market information, thus providing reference for decision makers.

Second, reducing costs is a very effective way to improve economic efficiency, and it is necessary for us to analyze it in detail. The cost level of an enterprise is a comprehensive reflection of its production level, technical level and management level, which determines its competitiveness and profitability.

Enterprise costs generally include ① material costs: procurement, transportation, storage costs, material loss; (2) Processing cost: loss of equipment, waste of water and electricity materials, loss of waste products, etc. ; (3) Labor costs: employee salaries and management expenses; ④ Sales expenses: publicity expenses, manpower and material resources spent in sales, transportation expenses, after-sales service expenses, etc.

The main ways to reduce the cost are: 1, technical means, 2, management means. By introducing new technology, advanced production technology and buying new machines, production costs can be reduced, labor productivity can be improved, and the improvement of product quality can also reduce the cost of after-sales service. The management means is to implement cost management. For example, cost management in the supply process, including procurement, material maintenance, material raising cost management, etc. In order to implement cost management, there are the following ways: (1) First, implement a reasonable cost budget, and then implement a quota system. Through the comparative analysis of actual cost and budget, find out the reasons, solve the problems and further adjust the quota. (2) through the establishment of reward and punishment system, arouse the enthusiasm of employees to reduce costs. (3) Incorporate cost reduction into internal publicity and corporate culture. For example, you can post some slogans advocating saving, and write some small ways to reduce costs in the publicity column, so that the whole enterprise can gradually establish cost awareness.

Third, some other ways. If you want to increase sales, you can provide prizes, gifts, social welfare activities and so on by establishing a strong marketing team and media publicity. In order to improve labor productivity, we can also train and allocate personnel reasonably, determine production scale reasonably, improve production conditions, implement reward and punishment system for employees, and improve their production enthusiasm. In addition, cooperate with national policies to produce green products or products that fill domestic gaps in order to obtain government support; Through mergers, acquisitions, financing, etc., economic benefits can sometimes be significantly improved.