The Study Of Finance Management Mode Of ATO Construction Company Limited

The construction of high way in China is under the booming period. So it brings a lot of chances to the highway construction company. But the transportation infrastructure construction belongs to the low entry barrier industry which is labor intensive, capital intensive and full of competition. ATO construction company ltd. (short as ATO) should make the reform and innovation for the corporate governance structure and the financial management mode as per the modern enterprise system, if ATO wants to be ready for the competition in such a industrial environment.The object of this article is a special enterprise with the feature of army and company. With the rapid expansion of the scale of production, ATO's layout presents following characteristics:many units,long front,large scope and big management span. The current financial management mode cannot meet the requirement for the group headquarters carrying out macroeconomic management and dynamic control to the subsidiaries and the third grade units. Therefore,the key issue we study and try to solve by this article is: which kind of financial management mode ATO should use.This article has used some basic theories such as financial management, accounting, corporate governance , internal control and cost management. In addition to referencing the latest research results and the practical experience of the corporate governance structure and the financial management mode, this article is based on the objective description and the comprehensive analysis of ATO's management system, and insists on the principle of the combination of theory and practice. After making a deep analysis and research on selection and implementation of ATO financial management mode, this article draws the conclusion : ATO should adopt financial centralization management mode.The main content of this research includes:the improvement of ATO corporate governance structure and the specific implementation of financial centralization management mode.The result of this article is based on the feasibility and operability. It aims to help ATO set up the financial management mode in accordance with the corporate governance structure, and improve the financial management level, economic efficiency and comprehensive management. So it can undertake the task as the"national team"of the emergency rescue.This article uses the administrative parents and subsidiary company governance structure for reference, put forward the setup principle for the parent company, subsidiary company and the third grade unit governance structure, and makes a basic drawing of the corporate governance structure. Through the comparison of advantage, disadvantage and suitability of the operational control, financial control and strategy control structure, then together with the business feature and the governance structure of ATO, the article points out ATO should use the financial management mode in accordance with operational control governance structure. The financial centralization management mode is the representative of the operational control governance structure. To use of the group financial centralization management, at first we must make clear the centralization and decentralization of authority. The parent company is the investment center of the whole group,and the subsidiary company is the profit centre of the group,and the third level unit is the cost center of the group. To implement the financial centralization management mode there must be some premises, such as the financial management information platform, the systematical and standardized organization and policies, and so on. To implement financial centralization management mode, the central cash management is the key, and accounting centralization and information sharing are very important, and the internal control is the basic method.The Project is the basic economic accounting units and the origin of economic benefits.Therefore this paper studies and investigates the financial management mode of the project.