Study On Optimization Of Working Capital Management Of X Group Based On Financial Shared Service

The improvement of working capital management has a direct impact on the operational efficiency of the enterprise,and to a certain extent,affects the efficiency,long-term survival and long-term development of the enterprise.Effective management of working capital can ensure the efficient connection between supply,production and sales,and increase the overall business performance of the enterprise.In recent years,as China attaches great importance to ecological civilization,China’s photovoltaic industry has entered a new period of development.Good working capital management can effectively resist the cyclical fluctuations of the industry and thus promote the sustainable development of the industry,which has put forward new requirements for the level of working capital management.In response to this situation,some large companies have improved their working capital management in a new way by implementing financial shared service and using information technology and business process re-engineering.This paper selects X Group,a photovoltaic company with a more mature financial shared service construction,and uses literature research method,case study method and financial index analysis method to organize the existing literature and theories on financial shared service and working capital management,and explores the mechanism of financial shared service influencing the working capital management of enterprises.Specifically,the financial shared service can influence the working capital management level through process re-engineering and re-shaping the supply chain.On the basis of the principles,we analyzed the changes in the working capital management level of X Group before and after the establishment of the financial shared service platform.Based on the existing working capital management performance indicators,we evaluated the working capital management performance of X Group through the analysis of financial indicators from three perspectives:capital structure,elements and channels,and found that the financial shared service did effectively improve the working capital management efficiency.However,there are still some problems,such as the internal proportion of capital structure is problematic,the turnover level of accounts receivable tends to be poor,the management of accounts payable needs to be improved and the working capital turnover level of marketing channels needs to be improved,etc.Based on this,suggestions for optimization were made,using the shared platform to strengthen the control of capital structure,adjusting the credit policy,strengthening the development of synergy with suppliers,and using the digital supply chain to optimize each activity channel.It provides the development direction for the Group’s subsequent optimization of working capital management.It also provides a theoretical basis and practical reference for other PV enterprises to develop financial shared service,thus providing a reference for PV enterprises to use financial shared service to use and rationally allocate working capital,as well as providing a reference for improving working capital management.With the rapid development of big data technology,more and more companies agree that financial shared service can improve the efficiency of working capital management by optimizing processes,but most companies are still in the initial stage.Therefore,an in-depth discussion of the specific ways in which financial shared service affect working capital management performance can provide some references for companies that wish to improve working capital management efficiency through financial shared,and also complement and expand the research related to working capital management and financial shared service.