Study On The Model Of Finance Share Services Center(FSSC) In Multinational Corporation

Continuous improvement is a basic key element of all effective business strategies.The goal of the improvements is the same: making better use of resources of the organization to create the optimal value for customers and other stakeholders.Driven by continual advances in technology,the company keeps refining of organization structure and business strategy,and also raises innovative solutions for complex business problems.Financial Shared Services Center(FSSC)is such kind of innovative way for financial management.In recent 30 years,with the development of economic globalization,worldwide expansion of corporation and international merge and acquisition occur frequently.The disadvantages of traditional and decentralized financial management mode are obvious and this mode is no longer adapted to the company's development,because it is uneconomical to maintain duplicate accounting units within each subsidiary,and it definitely causes heavy waste on human,material and financial resources.FSSC meets the company's requirements by providing optimized solutions to reduce costs and improve efficiency of financial performance through moving the work of the most basic and can be standardized from each finance unit to finance shared services center.Afterwards,the work can be centralized operated and managed.From overall point of view,financial function can focus on other value-added services after establishing the FSSC.This paper reviews the invention and development history of finance shared services center,analyzes its theoretical foundation,studies the research of Chinese and overseas scholars,discusses its build-up process,advantages and disadvantages.After years of exploration and development,FSSC has been mature with many successful cases,such as Company E,worth we draw a lesson from.This paper hopes that through the study on theory and practical case,the research on FSSC can be with more realistic significance.