Research On Centralized Funds Management Of Enterprise Groups

Enterprise group is the most popular type of organization adapting to the economic development and market competition. Currently, there are more and more enterprise groups grown up in China. Therefore, how to strengthen the financial management, how to choose the correct funds centralized management mod, how to keep the operation of the centralized management of funds, how to lower the cost of operation of the centralized management of funds and adapt to economic and social development has become one of the challenges which the Chinese enterprise groups faces. There is a saying that cash is the blood of the enterprise groups. Cash is the core of financial management. This paper is a major research focus on the group companies’ funds management by recalling the basic theoretical, comparing these 4 different types of centralized management mod..The main part of the paper is divided into three parts:The first part is the concept of group companies, centralized funds management theory. There are at least 4 types of centralized funds mode:Unified income and pay mode, petty cash mode, financial center and organizational form. The centralized funds mode can be classified by informatization degree, financial center and organizational form rely on high informatization, unified income and pay mode and petty cash mode rely on low informatization.The second part is the design of enterprise groups’ general funds centralized management mode. The first step to establish the centralized funds management of the company is setting the goals of financial management. Pointing out the direction of centralized funds management group propose. The general principles of centralized funds management is the basis for the implementation of centralized fund management plan, and the three basic principles is cash management, including normal operating principle, the principle of benefit coordination and harmonization principles. Different degrees of centralization of capital adapting to different centralized funds management model, such as, cash center mode and organizational form mode are always established in decentralize authority groups. And there is an example related to these theories.The third part is the implementation strategy and security system of centralized funds management. This paper refines the centralized funds management implement steps by steps. For the protection system, there are six proposed security plans:to establish a network of information systems, improve risk monitoring system, budget system, improve the billing function, improve,the training system. And there is an example in this part.The forth part is a case analysis--Kaisi Enterprise Group. Designing a centralized funds management plan for Kaisi by following the general principles and centralized funds management goals.Finally, to summarize the whole research in 3 important points and to look into the future of centralized funds management of China.