Red Star CFO, J, Read: No Business, Finance Is Just A Pile Of Numbers.

< p > some people say that CFO is the inevitable outcome of a certain stage of enterprise development. Without financial management, there will be no perfect governance structure in the modern sense.

This view has been verified again and again in the development of private enterprises.

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< p > when an enterprise enters a rapid development period from "barbaric growth", how to maintain the effectiveness of financial management and make use of finance to coordinate the development of business is the key to the financial pformation of an enterprise.

For a financial manager, it is equally important to understand finance and understand business.

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< p > < strong > from accounting to finance < a href= > http://www.91se91.com/ > Management > /a > pformation < /strong > /p >

< p > from the university teacher to the audit of the four largest accounting firms, Shi Shichang has always been a "technology oriented" talent.

Until 2010, he joined the red star, the chief financial officer, and became a financial manager who led red star to financial reform.

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"P", red star, opened in 1986 at a home based franchise in Changzhou, and gradually developed into a chain home group.

Like most private enterprises, red star Mei Kai long did not have the sense of financial management at the early stage of development.

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Until P in 2006, red star Mei Kai Long, who already had more than 30 stores, was ready to introduce strategic investors.

After the introduction of investors, the Red Star McLean has entered a rapid expansion period. Besides building shopping malls, it also expands outlets through the way of exporting brands and management services, and the demand for financial management also follows.

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After "P", schichang joined the Red Star Mei Kai Long, it began to carry out comprehensive budget management on the basis of improving the accounting accounting, which is a "painful period" for a private enterprise in the high speed development period.

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< p > Xi Shichang has a strong feeling in this regard: "when we start a comprehensive budget management, many departments will feel that financial management has suddenly become stricter. It used to feel that as long as it could bring about business, it would take much to spend, but suddenly there was a limit.

Business departments will also have some conflicts. At this point, it is necessary to fully communicate the necessity of budget management with their managers from the perspective of business departments.

When the framework of financial control is established, a unified concept should be formed.

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< p > "but financial control does not mean that business is going to die."

Xi Shichang emphasized that too strict financial management would sacrifice efficiency, which would impede the development of rapidly expanding enterprises, so there must be some flexibility in execution and gradual pition to standardization.

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"P" is looking for a listed red star, and its financial management and internal control system has been operating in accordance with the standards of listed companies.

Xi Shichang said that from the financial perspective of preparing IPO enterprises, we must first pay attention to compliance, accounting, taxation, management system and rewards and punishments mechanism must comply with the corporate governance standards required by the SFC, followed by the principle of maximizing shareholders' interests, and we should do well in budgetary management, profit control, performance analysis and decision support.

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< p > after the completion of the listing, financial management should cooperate with the vision of strategic development for capital operation, such as using financial leverage to integrate mergers and acquisitions, and introduce new business status.

Red Star Merlot, a household business, is also experimenting with e-commerce, prepaid card business, home decoration business and so on, extending the industrial chain around the furniture market, and exploring financial institutions, loan companies, private banks and other financial institutions.

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< p > < strong > Finance is a supporter of business decision < /strong > /p >

< p > when red star's chain stores reach nearly 140 stores, Shi Shi Chang should consider not only the financial system and process, but more importantly, how to implement standardized and efficient financial management so as to achieve financial and business integration.

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< p > during the interview, Shi Shi Chang has repeatedly referred to the close relationship between finance and business.

"It is the value of current finance to find out the problems in the business and adjust and rectify the business through the analysis of data and reports, and become a business decision support business partner."

He said.

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This is why P launched the ERP program last year and introduced the SAP system.

ERP system is the foundation for enterprises to obtain business data, and uses data to mine business problems, forming various analysis reports, including reports based on business, finance, management and other dimensions, to do well the support and financial control of the whole group business development, and truly realize the integration of Finance and business.

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The other thing Xi Shichang did was to set up a financial shared center. By integrating the SAP system, the accounting and bookkeeping of all the stores in the country were concentrated in the headquarters, changing the pattern of past regional independent accounting, further improving the accounting standards and quality, and shortening the reporting time.

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< p > in addition, the Financial Shared center liberates the original local financial team from the traditional simple and cumbersome accounting, provides reports and analysis by the shared center, and the local financial personnel can use these tools and reports to spend more time in the business, and find and analyze problems and solve problems with the business people.

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< p > for an enterprise, in order to maintain rapid development, besides modern financial management mode, it is also necessary to understand business financial management talents.

In the pformation of financial management of red star, the front-line financial managers and regional financial executives are also changing roles from basic finance to financial control personnel.

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< p > Xi Shichang thinks, < a href= "http://www.91se91.com/" > Finance < /a > data can truly reflect the business situation, such as the monthly income is not up to standard, the appearance of empty nest phenomenon, training meals and travel expenses are high.

You need to know your business to know where the problem is, so that you can conduct business analysis and decision every month with the business managers of various regions and shopping malls.

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< p > "if you do not understand business, financial data is just a pile of numbers."

He said.

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< p > as CFO, "understanding business" is equally important to Xi Shichang.

"Financial managers should not only pay attention to accounting and finance, but must be fully and deeply familiar with business, including traditional homes, new formats, and even future financial businesses. Only in this way can we know how to provide services through financial management."

He said.

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< p > in his eyes, a qualified CFO should have the following qualities: first, he must have strong business knowledge and understanding ability; two, he must have strong communication and expression ability; three, he must have strong management ability, and be able to build the financial structure and management team of an enterprise after growing up.

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< p > abroad, many CEO are born in CFO, which shows their importance in the enterprise.

But Shi Shichang prefers to define CFO as a supporter.

"CEO and CFO bear different responsibilities. < a href=" http://www.91se91.com/ "> CFO < /a > understand business is not to manage business, but through understanding business to build financial structure and management finance, provide support for CEO decision making, and the two cooperate with each other.

He said.

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