Hunan Tobacco Company Financial Management Model

With the gradual standardization of the market and increasingly opening of the tobacco industry, the competition of the tobacco industry is becoming fiercer. Changed from multiple legal representatives to sole one, the Hunan industrial tobacco corporation not only controls more than 20 sub-companies, but also engages lots of industries such as packing, transportation, etc. After merge and reconstruction, the Hunan industrial tobacco corporation's management mode and financial management environment changed accordingly. How to structure the financial management model to suit for the development of the corporation, and to improve the core competition capacity of the corporation, which is the focus of this paper.This paper analyzes the financial management status both from home and overseas, the financial construction and management mode is decided by the corporation's structure. Furthermore, which analyzes the financial management mode based on the theory of centralization, distribution, alternate and balance , and research the necessity of centralized financial management of the corporation based on the theory of risk control. This paper considers the actual situation of the Hunan industrial tobacco corporation, from the development of the financial construction, the current financial management status and existing problems and studies the other corporations' cases such as: Zhejiang tobacco industrial corporation and Hnuan Hualin steel group. This paper analyzes the advantages and disadvantages of their financial management and probes the financial development trend of the Hunan industrial tobacco corporation—the centralized financial management. It consists of sole management, sole taxation, grades check, budget management and achievement inspection. On the basis of integration of the current financial resources, separates the financial management from accounting calculation. This paper analyzes in details from the following aspects: grade calculation, fund management, budget management and achievement check, and suggest to carry out ERP-NC software in managing accounting information on financial centralized management.