Research On Building Financial Shared Service System Of D Group Corporation

As the economy continues to develop, more and more Chinese enterprisesbecome cross-regional group companies. While the rapid expansion in the scale ofthose companies, the cost of operation has been increasing, however, the efficiencyand the financial control capability has been declining gradually. In order to keepstrong competition ability while companies’ scale is growing, the enterprise groupshave to transform in management methods, especially in financial management mode.According to multinational companies’ years of practice, financial shared servicecenter（FSSC） is proved to be a good solution to this problem. So many Chinesegroup corporations follow multinational companies’ step to build their financialshared service system.The scale of D Group Corporation is growing at a high speed, followed by arapid increase in operation cost and a reduction of operation efficiency, which beginto restrict continuing expansion of D Group Corporation. For the purpose oflong-term development, D group can take this chance to transform to operational andstrategic finance from traditional accounting-based finance. Based on point above,this article suggest building financial shared service system for D group to meet theneed of transforming in finance management, that can help solve the problem ofhigh-cost and low-efficiency during the period of expansion. This article uses casestudy method and focuses on D Group’s financial shared service system buildingprocess and recommendations on the implementation of the project. In the end thearticle forecasts the effect of financial shared service system to D group.This article is divided into six chapters. The main contents are as follows: Thefirst chapter is the introduction, mainly explain the study background, researchpurpose and mentality, as well as domestic and foreign literature summarize. Thesecond chapter is about related theory including the theory of economy of scale, financial shared service theory, business process reengineering and managementtheory, and internal control theory. The third chapter analyses the problem of D group.The fourth chapter contains the elaboration of necessity and feasibility of buildingfinancial shared service system for D group and the processes of building financialshared service system. The fifth chapter suggests on tactics of implementation offinancial shared service project. At the end of this article the sixth chapter makes aconcise summary of the overall contents.