Monitoring And Practical Cases Of Group Financial Centralized Management

The group company carries out the unified management of financial accounting for wholly owned subsidiaries. Its main points include: (1) handling the approval procedures of annual accounts; (2) reporting the balance sheet, the profit statement and the annual cash flow statement monthly, and timely analyzing the accounting actual performance of wholly owned subsidiaries; (3) helping the wholly owned subsidiary to prepare budgets and medium-term plans; (4) guiding and guiding opinions on the financial and accounting aspects of wholly owned subsidiary companies. Wholly owned subsidiaries, without the consent of the leaders of the group, are prohibited from undertaking mortgage, guarantee and foreign investment activities in any form. When a wholly owned subsidiary purchases a fixed asset, it will report it to the group company with the annual comprehensive plan. When the purchase of fixed assets is temporarily increased in special circumstances, it is necessary to report the additional plan. The capital and capital needed by the wholly owned subsidiary should be solved on its own. If the cash flow difficulties are used to the group company, the financial department of the group company should first sign the opinions, and be approved by the leaders of the group company.

There are many advantages in implementing financial centralized management: first, improve the efficiency of capital use and strengthen the sense of capital management. By implementing centralized financial management, the enterprise group collectively funds the temporary idle and dispersed funds of the companies in the group and distribus them to the companies that need funds in the group, through the withdrawal of funds. capital It also strengthens the capital operation, and at the same time, promotes the management of capital within the group to achieve the balance and effectiveness of capital flow.

Second, strengthen group Internal monitoring 。 The general membership of an enterprise group is numerous, its organizational level is complex, and its management chain is long. The implementation of centralized financial management can make the operation and operation of the subsidiaries in the group, especially the operation of funds, be completely placed under the supervision of the group, so as to ensure its business behavior is standardized, safe and efficient.

Third, reduce group financial expenses. The centralized financial management of enterprise groups enables the group to integrate funds, revitalize capital and raise the utilization rate of funds. Under the same investment and production scale, the demand for funds for banks has decreased correspondingly and interest costs have been reduced. Short term credit satisfaction Subordinate company The long-term use has reduced the risk of high debt management.

Fourth, improve the credit rating of the group. After the centralized financial management of enterprise groups, each subsidiary no longer has credit relationship with banks alone, but carries out credit activities in the name of enterprise groups, so it is easier to obtain financing from banks.

Fifth, provide reliable information in real time to ensure the smooth operation of the whole enterprise and the healthy development of the subsidiary's production and operation activities.

Centralized financial management is an integrated process of information technology and advanced management ideas and management methods to improve the comprehensive management level of financial and business of large enterprises, and to effectively configure, manage, control and optimize the overall enterprise resources. This method will play a significant role in promoting effective financial management of enterprise groups. It will be adopted by enterprise groups more and more.