Financial Shared Services Mode Establishment And Implementation Study For The Construction Companies

With the carrying out of the ’B&R’ Initiative, the construction companies are playing more important roles in the infrastructure development in both domestic and overseas markets. More and more companies join the international development groups. But the traditional decentralized financial management mode could not meet the company’s fast expansion demands and has become bottleneck constrains for further development of the company. Since 1990’s, along with the rapid development of information technology, Financial Shared Services Mode has been adopted by some conglomerates. The Financial Shared Services is an innovation of traditional financial management mode essentially. It has successfully integrated the personnel, technology, relative process, and realized the standardization and simplification of the existing financial management.After 30 years of exploring and development, the Financial Shared Services Mode has been widely used by many international companies, yet in China it is still at the preliminary stage. The establishment of the Financial Shared Services Center in the company will effectively integrate the internal resources, reduce the running cost and increase the operating efficiency. It will somehow solve the problems that the companies are facing.This paper takes Company A of CRCC as an example, by demostrating and analyzing the company’s present situation of financial management mode, pointing out the main problems exists in the current mode and the barriers for further development. Combining the self-position and strategic target of the construction companies’financial management, this paper summarizes the fundamental principle and frame target for the establishing of Financial Shared Service Center for Company A of CRCC. The implementation plans, module construction of the system, and the secure measures have been discussed in details. Through the specific case studies, the establishment of Financial Shared Services Mode for the construction company has been theoretically and practically approved, which reflects the practical significance to the construction companies’Financial Shared Services Center Establishment.