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A Study on the Prevention of Financial Risks in Commercial Enterprises from the Perspective of Accounting Culture

Author(s)

Lu Lu

Affiliation(s)

Yunnan College of Business Management, Kunming, Yunnan, China

Abstract

Commercial enterprises mainly make profits through buying and selling goods. Their daily business covers purchasing, inventory control, credit‑based sales and collecting outstanding payments. As a result, their cash flow tends to swing greatly, and they face high financial risks related to receivables and stock. As an easily‑ignored soft element in corporate finance, accounting culture exerts real‑world impacts on the execution of risk controls from four aspects: spirit, institution, staff behavior and material infrastructure. In reality, many commercial enterprises prioritize sales growth and business expansion, yet pay little attention to building proper accounting culture. This practice further exposes firms to different kinds of financial risks. Based on real‑world features of the commercial trade industry, this paper explains how accounting culture connects with financial risks. It explores what gives rise to risks when accounting culture is insufficient, and puts forward corresponding preventive measures. This research hopes to offer practical references for commercial enterprises to handle financial risks.

Keywords

Accounting Culture; Commercial Enterprises; Financial Risk; Trade Receivables and Payables

References

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