A Study On The Establishing Of Business Group's Financial Controlling System

With the unceasing perfect of market and the ever-increasing maturity of the stock company system,the most outstanding modern company is business group, which has a basic structure of parent and subsidiary company. The survival and development of business group calls for a set of effective management and control systems,of which finance control being considered as the most important part.On the basis of domestic and foreign management theories as well as the practices of Chinese business group, this paper makes a thoroughgoing study of some key issues on building finance control system for business group.First, it puts forward the guiding ideology that setting up finance control system is expected to bring economic benefits for the company.Second,it analyzes the following prerequisites for building effective finance control system:1 The precondition to set up the system is that parent company has control over subsidiary;2 The foundation to set up the system is that parent company defines the right owned by subsidiary;3 The standpoint to set up the system is the establishment of modern enterprise system and effective corporation administration structure.Finally,this paper conducts a pragmatically discussion about the core of finance control system and then comes to a conclusion that finance control system should be an organic whole with finance objectives as guidance,overall budget as tool,finance staff as link and finance information as assurance. Furthermore,only through some key sectors,i.e. cash control,capital budget control,cost and expenses control,liability control and profit distribution control,can finance control be put into effect so as to provide business group with an ideal operation environment.