Research on Cost Management Issues of Small and Medium-Sized Enterprises

A Case Study of Company H

Abstract

Small and medium-sized enterprises (SMEs) are an important part of China's national economy. Their development drives employment, taxation, innovation, the market economy, and many other fields. However, due to the influence of multiple factors, the current situation of cost management in many SMEs is worrying. Common problems in their production and operation include confused corporate functions, incomplete financial systems, and weak awareness of cost budget management. This article briefly introduces the current situation of SMEs in China, combines relevant theoretical knowledge of cost management, and uses research methods such as case analysis, literature review, and comparative analysis to elaborate on and analyze the cost management of SMEs in detail. The case selected in this article is a small and medium-sized retail enterprise mainly engaged in entrusted agency and distribution. It has been established for 24 years, with a relatively mature and complete overall operation model and management system. The operational problems it reflects are representative among retail SMEs. Firstly, the article expounds on the characteristics of SMEs and the content of cost management. On this basis, taking Company H as a case, it analyzes the problems existing in the company's cost management and puts forward corresponding suggestions. The main cost management problems of SMEs include weak awareness of cost budget, unreasonable organizational structure, lax control of indirect costs, long accounts receivable cycles, and difficulty in collecting payments. Secondly, it conducts a specific analysis of the problems existing in the enterprise and proposes suggestions. The specific improvement suggestions include strengthening the awareness of cost management, improving the organizational structure of cost control, enhancing the control of indirect costs, and strengthening the management policy of accounts receivable. Finally, considering that SMEs vary in industry fields and scales, in the actual cost management process, flexible application should be made according to industry characteristics and with reference to the management experience of successful enterprises in the same industry. This paper focuses on the main influencing factors of cost management in small and medium-sized retail enterprises and how to manage the cost issues in the production and operation of enterprises, hoping to provide references for the cost management of small and medium-sized retail enterprises.