Research On The Financial Shared Service System Of Power Grid Group Corporation Of A Province

With the expanding structural reform of the electrical power system, the competition between power companies is intensifying. The electrical power grid group corporation of province A, as a large scale energy company, has several problems including a complicated organisational hierarchy with multiple accounting entities, excessive management activities, accounting framework which is distributed, difficulty in risk management, inadequate financial control, and other issues. To remain competitive, electrical power corporations need to adjust their management strategies, especially financial management strategies. The financial shared services model is an advanced business model that is widely used by large world-class enterprises. Recently, global financial reform occurs through the implementation of the financial shared services model promoting the financial roles transferred from the back-end to the front-end to enhance the operational decision-making ability of the company.The electrical power grid corporation of province A established a standardised financial shared services system by applying the financial shared services business model. Firstly, This thesis introduces background research, current research in the field and the motivation for this thesis. Secondly, it discusses the theory, concepts, characteristics of shared services and its implementation and goes on to introduce the financial shared services model. And it analyses the financial management status of the electrical power grid corporation of province A and discusses the necessity and feasibility of the implementation of the financial shared services model. In addition to it, it analyses the actual implementation of the financial shared services model at the electrical power grid corporation of province A from the overall vision, the construction of a financial shared services centre, the design of standardised financial processes, the establishment of a financial shared infonnation platform, the promotion of the integration of finance and business, and the security system. The implementation of this system allowed the corporation to increase the overall economic efficiency of the group, by using the current operational capacity to maximise equipment lifecycle and optimise the utilisation rate of company assets. This thesis focuses on the establishment of the financial shared services system and the significance of doing so at the electrical power grid corporation of province A.