Research On The System Of Centralized Management Of Funds In Lft Group

As enterprises continue to increase their multi-industry and multi-level sub-member units, the flow of funds at all levels becomes more complex and difficult to control. Therefore, to improve the capital management and collaborative management, it is essential to implement the centralized management of funds. Combination of internal and external environment and conditions can help us to select the appropriate mode and means of centralized management of funds. The right mode and means can not only allocate the funds rationally, improve the efficiency and effectiveness of the funds, control the financial risk, but also can be a basis for business process optimization which can improve the overall efficiency and to maximize the overall interests of the group.The main content of the article consists of five parts. First the paper shows the significance, contents and methods. Second section describes the concept of centralized management of funds, and the necessity and importance for enterprise groups to implement it. Then, this article depicts centralized different models of management of funds in detail, and analyses the pros and cons of various models. Followed with the current situation and objectives of funds management, this paper considers the group type, organizational structure and other factors to choose a suitable model of centralized management of funds for LFT Group. Then some key points, like to complete the financial management systems, to set up a dedicated professional organization, to set capital operating rules and to establish the budget system, are discusses. Finally, as a supplement, the paper emphasizes the risk identification and prevention in centralized management of funds, and analyzes the protection of network security, internal audit arrangements and the appointment system of financial staff.After analysis, we draw a conclusion that the "fund management center as a platform for the cash pool"model can suit LFT Group well. And around this conclusion, this article gives suggestions on the establishment of professional fund management institutions, the improvement of relevant management systems, the development of capital operation rules and the points to control risk, trying to construct a centralized management of funds that can promote the development of LFT Group.