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Group Financial Shared Service Center And Its Construction

Posted on:2017-05-14Degree:MasterType:Thesis
Country:ChinaCandidate:N H WangFull Text:PDF
GTID:2439330488978411Subject:Business management
Abstract/Summary:PDF Full Text Request
Compared with the traditional centralized or decentralized management model,it makes full use of information and network technology to Integrate human resources and technology into the process,so as to realize the financial treatment process standardization and simplification.Despite of the time Finance Shared Service Center which is a new accounting and reporting business management appears is not long,it attracts a lot of Professional people's attention and has been widely used in practice.After the establishment of SSC(shared service center),Branches in different country and region will use this center to deal with the business of accounting in practice,such as accounting and reporting,in order to establish a consistent and standardized accounting reporting system.And through providing financial sharing services,it will help many businesses and institutions to save the job of accounting.Above all,SSC appears after developing to a certain level.Under the increasingly frequent motivation of the market,many enterprises have been greatly improved in terms of efficiency and scaleo And enterprises start to branch,resulting in an increase in the number of branch enterprise companies and a rapid expansion of the financial personnel and administrative expenses,which led to the rise of shared service center management model in order to solve this question.Financial Sharing Center will integrate the group's internal business resources,and then use standardized operation mode and business process to achieve the standardization of the process of the company and the fine simplification through the consistency of financial work.Overall the characteristics of financial shared service center are mainly embodied in these aspects:fast reaction speed,high transparency,low operation cost,low management risk.Thus,the application of SSC can reduce the management cost and improve the quality of service,which will cause great impact on the traditional mode of enterprise management.Corporate Financial Sharing Center can guarantee companies independent entities in the financial sector isolated from the traditional sense of the functional departments on a high level and fulfill the achievement from a cost-centered real sublimation to a profit-centered one,leading to the realization of the self-functional significance of "hematopoietic" addition,the establishment of Financial Sharing Center can effectively play a role in motivating and retaining talents from the system level.J&K Investment Holding Group(hereinafter referred to as the J&K Group)is approved lawfully as a large-scale investment holding group,with registered capital of RMB 3.2 billion.The company engages in business very widely,covering investment loans,corporate bonds,asset management,etc.Through establishing a new financial operation platform,Group provides leading financial services to institutions and individual customers in various industries,with businesses eovering mergers and acquisitions,financial adviser,asset management,wealth management and so on,and meanwhile invests in real estate,electricity,agriculture,hotel,cultural and other fields.Up to March 31th,2016,the number of company's holdings and equity entities,including branch,subsidiary reached 289.Each unit of the existing positions of the financial staff increase up to more than 100 people.And with the rapid expansion of business,the company will continue to increase in the office and is expected to be new.If the financial center of the group are still using the traditional functional management mode,financial personnel will form a huge crowd,team of financial management cost will increase dramatically,and financial management will further increase the difficulty,the phenomenon of information island will be inevitable,mission control will become the short board in a barrel on the financial side,the financial management efficiency will be unable to protect.It has achieved a remarkable success after the establishment of J&K Financial Sharing Center.Based on comprehensive theoretic research and summarization,J&K Group creatively introduced in the financial shared service combined with the actual situation of itself through establishing an independent financial management company as the branch or project corporation for the Group to provide financial shared services.It adopted standardized operation mode and business process,intending to reduce costs,enhance enterprise expanding and solve the increasing challenges arising from financial management and operation,meanwhile aiming to accelerate enterprise standardization and institutionalization of the process and improve the quality and efficiency of financial services so as to promote the development of the core business of the group and form a virtuous circle.Data collected from the pre-operation period showed that the group finance department personnel costs after the establishment of J&K Financial Sharing Center only occupied 37.74%compared to the before,but it has met the demand of relevant Financial functions matched with the growing group subsidiary or holding company.This paper introduced in details the background of centralized finance and implementation process in J&K Group and described the several key elements.It analyzed the benefits the centralized finance can bring for the Group and the issues how to deal with management reformation for the enterprise and so on.Many enterprises have various forms of successful cases in the world,J&K Financial Sharing Center has displayed strong superiority in saving the cost of workforce and finance,enhancing the efficiency of financial management and optimizing the financial resource distribution of the group companies,which resulting in the establishment of a larger platform for resource integration and the favorable support for improvement of management and effectiveness.The case of J&K Group enriches the achievement of multi industry group enterprises in the theoretical aspects which play an important role in theory and practice aspects for a lot of group companies.Meanwhile,the practice of the developing and characterized Financial Sharing Center is bound to provide new elements for the "Financial Sharing Service" improvement and provide fresh fodder for related research in the field of financial management.
Keywords/Search Tags:Financial reform, Shared services, Shared Financial Service Center, Financial management, Localization
PDF Full Text Request
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