The Case Of Centralized Funds Management Of Group A

Funding is the blood of a company. Cash flow reflects not only the ability of payment, but also the development. In the process of globalization, more and more companies have realized the importance of having a health cash flow, viewing it as the key to success. Centralized management of funds has many advantages in enhancing fund management level of enterprises and making sure of a health cash flow, which has been widely used in domestic and foreign companies.At present, fund management tools and models of enterprises have been mature, which is mentioned in a lot of domestic and foreign papers. This paper looks through related literatures, stressed the importance of management of funds, using the theory of centralization and decentralization to introduce unified revenue and expenditure, allocation of reserved fund, settlement center, internal banks, financial companies and other types of basic centralized funds management model, which are also categorized, compared and analyzed, and proposing that to choose their own development mode is the key of effective operation of enterprise centralized funds management.Group A is a large state-owned enterprise group, which is with large scale, many branches, complicated industrial structure and wide geographical distribution. During the “the Eleventh-Five year plan”and “the Twelfth-Five year plan”, Group A developed rapidly, but had been using the decentralized management of funds, which has bounded development of Group A. Nowadays under the circumstance of declining international economic environment, Group A is urgent to enhance the operation and management of internal funds. This paperstudies Group A,and after carefully analysing the current situation and problems Group A fund management,this paper proposed the goals and patterns of funds managementfor Group A. This paper empharsized on the structure of fund management,process of building the pool of RMB funds and foreign exchange pool of funds and other related applications,and mentioned the results and aspects for improvement. This paper is usful for enterprise that is eager to apply centralized funds management and enterprises that don’t know which funds management model to choose.