Financial Management And Selection Of Group Companies

The key to management is to see functions, namely, the scope of responsibilities, what should be managed, and whether management is in place. The financial management of a group company can be generally divided into the following four management levels:

The 1. group's financial management: This is the highest level and the most important part of the group's financial management mode. Generally speaking, the group company itself has no production and operation process, but it is a running investment company. It cares about the investment income. Therefore, it is necessary to carry out effective regulation, guidance, supervision and control for the investment and the production and operation process of the controlling subsidiary. This determines that the financial management at this level of the group can neither be too detailed nor too specific for other levels, nor can it be used for general surface management only.

(1) to request and manage the standardization of the accounting work of the subsidiary. Including the reasonable setting of subsidiary accounting institutions, the appointment criteria of accounting personnel, the determination of accounting methods, the contents and requirements of accounting supervision, and the formulation of internal accounting management system, we should not only reflect commonalities, but also embody individuality. We should work out a set of high-level management practices and standards that are both uniform and practical, and conduct regular examinations and inspections.

(2) investment management. It includes investment in subsidiaries and foreign investment and subsidiaries' investments in sun and abroad. This is a very important aspect of group financial management. Because every expansion, reorganization of assets and merger and reorganization of internal enterprises must be based on the information provided by the financial department and other relevant financial data, so as to make decisions on every capital movement, and formulate a set of specific financial systems and implement them.