2 China's Current Status of SME Accounting and Information Technology
Issues
As the lack of enterprise funds, management idea backwardness, Most of China's SMEs still follow the original financial approach,
manual, duplication, inefficient. Even if some companies set up accounting information system, but defects in management thinking,
can not to substantively address the issue of accounting information, failed to timely and effective to provide information services,
consulting and decision support for enterprise. In sharp contrast, in large enterprises have built a complete information system
network, effective use of computers to complete daily accounting operations, but also effective use of accounting information system
to provide large system analysis of historical data to assess the past controls the current and predict future economic activity.
2.1 Business accounting operation flow existence flaw
Corporate cash flow with the flow of logistics, there is an existence of defect that the company's cash flow information often lags
behind the logistics information. "Financial Account" and "in-kind account" are separated from each other. SMEs, due to their
smaller volume of business, the financial system is not perfect, the company's financial accounts, financial reporting often lags
behind the occurrence of phenomenon, when a particular transaction occurs, simplified version of the economic history of the
business information is sent to the accounting department. So that enterprises can not control the production activities from the
financial analysis of business data. This is because the accounting data is usually acquisition after the business, rather than real-time
acquisition of the business occurs; accounting data processing is to sort the collected data lag, posting, aggregation, reconciliation, etc.
Financial report can not be directly used, must be processed in order to submit a number of the background to the users hands.
Accounting information lag make the managers can not get the information the accounting information system, so they can’t make
the right judgments.
2.2 Accountant the network lacks the systematic characteristic
Networking is the premise of accounting information, the data indicates that systemic accounting information system and network
level is not high, the various subsystems within cannot share data fully in the accounting information system, resulting in a
tremendous waste of information resources and human resources. In accounting and analysis process, there will be exchange of data
between departments, or to submit relevant information to higher authorities. In the traditional computerized accounting system, only
through the print data or reports submitted by way of a floppy disk. This will increase the data transmission cycle, but also because of
data error report printing, floppy disk damage and viral infections and other factors, resulting in inaccurate accounting data and errors.
Contrary to the requirements of accounting network, SMEs are lack of coordination between the accounting information systems [0l.
Selection of accounting software is usually limited to use in the financial sector, others such as personnel, production, purchasing and
other departments with accounting information generated by closely linking to information can not achieve good convergence.
Meanwhile, outside the enterprise information systems division, still a large number of economic businesses issued by the labor,
delivery documents, For example, tax returns, companies still hold the printed periodic financial statements to the tax authorities to
declare taxes.
2.3 Understanding of accounting information systems are biased
SMEs, due to lack of management capacity, enterprise information objectives are not clear, do not understand the management
problems of restricting the role of business development, do not understand the information that can be resolved is the management
problems, so the enterprise get into "IT black hole." Understanding of accounting information systems are biased, mainly in small
and medium enterprises, they don’t have clear understanding of the concept of information, the understanding of the information is
too simplistic, and hold high expectations of the implementation of information technology projects, the information equivalent to the
transformation, such as software selection in the blind pursuit of high-grade and high-functioning, not aware of the trade restrictions,
existence of unrealistic idea of the implementation of information. Example, that information can solve all problems, information systems can replace the entrepreneurs and managers, etc.
Many companies are aware of ERP can help companies improve the level of accounting information. But in the actual operation,
there will always be a number of issues. Some companies regard ERP system as a common software system, does not according to
their own criteria to choose the right environment for the implementation of ERP systems, resulting in the ERP system put into
operation, and failed to achieve its functions. Many companies had high expectations to ERP systems, ERP systems that rely on
production and operation can solve all the problems, but eventually found that business problem is not resolved, so that the ERP
system has no effect in the accounting information. Some companies put the ERP system as a sector of the system to use, that the
ERP features just to stay in inventory, logistics, finance, accounting level, not extended to the full range of business to be
implemented.