Study On Construction And Application Effect Of Centralized Capital Management System

For the past few years,in response to the rapid growth of China's economy and the intensified market competitions,various enterprises are expanding their business scales,which promotes the demand of centralized management and liquidity administration of the internal capital.The question of how to carry out the work of capital management is not only the foundation task of the accounting apartment,but also a focus mission.The basic financial accounting,the budget management customization,as well as the company's operation risk control,are all based on the usage and control of the fund.Given that the fund is the core of an enterprise,to make the capital flow is essential for the company's smooth running.Since the formal enforcement of GE's "Cash Pooling System",the pattern of centralized fund management has won extensive attention,and the example is followed in a growing number of conglomerates,with which the theoretical researches are enriched.However,there is lack of case study which is relating to the problems that different enterprises have to confront in practice.Taking COFCOTrading Co.LTD(hereinafter referred to briefly as COFCO Trading)as the research object,this paper conducts a thorough study on COFCO's cash pool by the methods of case study and theoretical summary.The paper takes the business characteristics,development strategy and status quo of capital management of "COFCO Trading" as the entry points,and conducts the analysis of the inevitability of the employment of "COFCO Trading" system.The paper also studies on the preliminary research preparation work.system build and guarantee,as well as implementation process of the system,and analyzes the advantages the system brings during the enterprise capital management on certain aspects such as control of financial planning accuracy,capital account supervision,capital allocation and appropriation,financial and administrative cost control,tax cost reduction,and the demonstration functions the system plays within the group company.In the meantime.the paper points out the problems in the implementing process of the system,such as internal complexity,user experience and enterprise system establishment,as well as the solutions.As the newly-developing pattern of centralized fund management in recent years,there are more different aspects relating to the "Cash Pooling System" can be developed and discussed in detail further.The "COFCO Trading Cash Pooling System" has been launched on May 28th.2017.The performance period is relatively short.There are problems need to be solved relating to the system framework integration and the practical implementation.Therefore,the system need to be enhanced constantly and the problems above have to be solved practically after further research and analysis in deep in the next step.Meanwhile,it is the great honor that this paper could provide any useful and valuable experience for any other enterprise in centralized fund management pattern selection.