Research On Establishing Financial Shared Service Center To Enhance Enterprise Internal Control Of BY Airport

Financial Shared services is a kind of innovation management mode,is the starting point of the large group company to implement financial transformation,is a large enterprise of internal business processes,financial processes to streamline and standardize an innovative means of modification,help and support the development of the enterprise scale expansion,globalization.First raised on the Fifth Plenary Session of the 18 th CPC Central Committee,shared economy is expected to be a hot topic in the next decades as the idea of shared service based on information technology tends to be the backbone of shared economic service in the future.With the development of Chinese economy and comprehensive national strength,an increasing number of Chinese airports rapidly expand themselves to cover diversified industries,turning into comprehensive enterprises.As one of the core operational support departments,financial departmentplays an essential role in corporate production and management.Traditional financial departments are monopolistic,multifunctional,and repetitively set in various parts of enterprises.Monopoly leads to low efficiency.Multifunction results in disordered work.Repetitive and scattered departments obviously increase costs for enterprises.These drawbacks restrict the functioning of financial departments and obstruct the establishment and implementation of new strategic plans and reforms in enterprises.Under such a circumstance,establishing a financial shared service center would become an imperative settlement.BY Airport,one of the big three aviation hubs in China,used to designate financial managers in branches and subsidiary companies,thus streamlined policy announcement and obedience,budget assignment and implementation,and ensured independence of financial officers.It has boosted corporate efficiency,improved internal management,and enhanced competitiveness of BY Airport.As BYAirport develops,however,its drawbacks also occur,calling for a reform.Financial Shared Service Center(FSSC)could do better in reducing costs,improving service quality,concentrating on core business,expanding and creating profits,delivering and sharing information inside enterprises,promoting centralization and professionalization,helping enterprises control risks and clarify responsibilities.FSSC can overcome the problems occurred in branches and subsidiary companies with designated financialmanagers,improve corporate management and enhance group management through building a new financial management mode.It is a universal problem for enterprises to explore ways of implementing internal control,regulating financial behavior,upgrading operational management and increasing efficiency,so as to catch up with the rapid development of the whole conglomerate.The author has worked in BY Airport for years and witnessed different stages of internal control implemented by BY Airport.From the issuance of Enterprise Internal Control Mannual,to the Enterprise Internal Control System established by financial departments,enterprise internal control has been gradually perfected and has provided significant help in corporate management.As the enterprise develops and expands,however,many problems of internal control also occur and appeal for urgent settlement.After three years' study for MBA,the author takes BY Airport as an example and applies Process Re-engineering Theory to analyze problems of internal control in BY Airport,and suggests building FSSC to solve the existed problems.Through case study of BY Airport,the author wishes to find universal rules of internal control and help Chinese airports develop to a higher level.This paper argues that financial transformation starts with Shared services,the establishment of financial Shared service center to promote financial sector transformation,the finance department from the heavy accounting,settlement,reimbursement and other daily affairs,make its attention to analysis enterprise financial situation,management decisions.Build and share financial center,first to clear enterprise build the necessity and feasibility of sharing center,and get the approval of top management and support,unified leadership by the company;Secondly,it is based on the information platform,which has the mature running ERP system and the relevant system of the sharing service.Realize enterprise finance,business process reengineering,standardization and standardization;Arrange personnel and establish effective financial sharing service center internal control mechanism.