“The biggest advantages of transnational corporation in contrast to Chinese enterprise is that it realize the centralized management, especially the centralization of financial management.”
1． Analysis on Major Problems
1. With the deepening of enterprise reform, the group of enterprises has become the major economic sector in the national economy of China and the building of information-based group of enterprises has also become the major concern in enterprise reform. The current situation of financial management in the group of enterprises throughout the nation reflects the following problems:
False financial information: due to the influence of internal control, department interest and the professional proficiency limitation, etc., the financial personnel in subsidiaries of the group often cause the inaccurate accounting calculation or untrue statement and sometimes consolidate accounting statements to cover up the actual business circumstances of the subsidiaries, which may cause inconsistence between account and assets and false account.
Weak group supervision: because of the currently-used decentralized management pattern as “subset of books”, the management level of a group cannot instantly figure out the financial status and results from operation. Therefore, it is urgent to improve the financial accounting and management pattern, to shorten the financial management chain and to narrow the “financial gap” between the group company and its member units so as to ease the management difficulty.
Severe problem of information isolated island: there is no integrative and general planning for establishing an information-based group of enterprises and there are various kinds of financial software used by the subsidiaries, which makes it hard for the group to summarize their financial data for analysis and management and to realize the information sharing for management throughout the group; even inside the subsidiary, the data in the business processing system cannot flow into the financial software for accounting and there is also the problem of “information isolated island”;
Inadequate Standardization: the financial accounting and management lack the corresponding standards on the flow, business and data, which makes it hard for the group company to summarize the data, to make the general analysis and structure analysis horizontally in order to achieve a comprehensive knowledge of its economic resources; it is also hard for the group to make a depth profile on the financial data of a certain member unit.
Slow disclosure of financial information: Because the internal transaction among the subordinate enterprises of the group is frequent and great in quantity and because of scattering location and untimely posting, it is difficult for the group to timely check the account and the information cannot be timely summarized to cancel after verification, which greatly affects the disclosure of relevant external transaction and the cancellation of the consolidated statements. The summarization and consolidation of the statements and the internal transaction processing are relatively long in period, low in accuracy and complicated in handling.
Management pattern of unmatched software tools: currently the function and purpose of much financial software is intended to assist enterprises to realize accounting computerization to replace the manual accounting, which ignores the role of financial work in the process of accounting - management - decision-making and cannot meet the demand of the group of enterprises in terms of financial management. The conflicts between management pattern and information system tools become more and more obvious.
For a group of enterprises, the financial resource is undoubtedly the most important economic resources. To achieve an aggregate advantage of financial resources, to realize group strategic objectives and to maximize the interests of the whole, it is required that the member enterprise should cooperate when the headquarters implements integrative restructuring of financial resources, which means that the financial management of each member enterprise shall be in line with the general financial strategy, financial policy and primary financial system. However, the multi-location and multi-industry of group operation are the challenges in achieving this objective and the primary task in building an information-based group of enterprises is to use information technology to establish an integrative platform for financial accounting and management to realize the centralized management of group finance for a better management performance.
It is our task to find out a solution to realize the conformity to the general financial strategy, financial policy and primary financial objectives of the group. By way of systemization, the group can strengthen its monitoring, supervision and control over financial activities of its subsidiaries and their member enterprises so as to improve its structure adjustment, to promote the consensus on group financial strategy and policy of all its member enterprises for a better implementation of them, to overcome the inclination of adverse objective choice and to increase the allocation and utilization efficiency of financial resources as a whole.
2. Scheme Overview
Drawing upon the years of experience in enterprise management software development and extracting from the management ideas of many famous enterprise management home and abroad, the Inspur Centralized Group Management Software is intended for the group-type enterprise user (or large-scale organizations and enterprises as well as government agencies or administrative units with demand of centralized management ) as a set of overall solution to data, management and decision-making centralization.
Resorting to modern communication network technology, Inspur Centralized Group Management Software is intended to establish data and information sharing system for bettering decision-making of the group of enterprises. Under the premise of centralized management pattern and aiming at the overall strategy of the group, this software stresses not only on the division of labor, cooperation and specialization of all supply chain links of the group, but also on the monitoring and integration of the entire group resources by the headquarters, which can realize the centralized storage of data, the centralized allocation of resources and the centralized monitoring of information.
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