The financial management of enterprise groups must be market-oriented, with capital as the link and modern enterprise system as the guarantee, rationally allocate the assets of enterprise groups, give play to the advantages of the group and improve the efficiency of capital operation. Below, I will share with you the financial management mode and method of enterprise groups. Welcome to read and browse.
First, the choice of enterprise group financial management model
The financial management of enterprise groups must be market-oriented, with capital as the link and modern enterprise system as the guarantee, rationally allocate the assets of enterprise groups, give play to the advantages of the group and improve the efficiency of capital operation. The financial management modes of enterprise group companies to the member units in the group can be divided into three types: centralized management, decentralized management and decentralized management under the guidance of the group headquarters.
(A), centralized financial management model
In the enterprise group that adopts this model, most of the financial power is concentrated in the parent company, and the parent company adopts strict control and unified management over its subsidiaries. The characteristics of centralization: the financial management decision-making power is highly concentrated in the parent company, while the subsidiaries only enjoy a small part of the financial decision-making power, and their personnel, finance, supply, production and sales are under the unified control of the parent company, while the financing, investment, asset restructuring, loan, profit distribution, expenses, salary and bonus distribution, appointment and dismissal of financial personnel and other major financial matters of the subsidiaries are under the unified management of the parent company.
The parent company usually issues production and operation tasks and controls the production and operation activities of subsidiaries through direct management. To some extent, a subsidiary is only equivalent to a factory or branch directly under the parent company, and its investment function is completely concentrated in the parent company.
Advantages of centralized enterprise group financial management;
(1), which is convenient for commanding and arranging unified financial policies and reducing administrative costs;
(2) It is beneficial for the parent company to exert its financial control function and realize the unified financial goal of the group;
(3) It is conducive to giving full play to the role of financial experts of the parent company and reducing the financial risks and operational risks of the company;
(4) It is conducive to the unified adjustment of the group's funds, ensuring the fund position and reducing the cost of funds.
Defects in financial management of centralized enterprise groups;
(1), the financial management authority is highly concentrated in the parent company, which is easy to dampen the enthusiasm of the operators of subsidiaries and inhibit the flexibility and creativity of subsidiaries;
(2) Although a high degree of centralization can reduce or avoid some risks of subsidiaries, the decision-making pressure is concentrated on the parent company, and once the decision-making is wrong, it will cause huge losses.
(B), decentralized financial management model
In the enterprise group adopting this model, the subsidiaries have complete financial management decision-making power, while the parent company mainly indirectly manages the subsidiaries. The characteristics of decentralization are as follows: in terms of financial rights, subsidiaries have full decision-making power in terms of capital integration, investment application, financial revenue and expenditure expenses, financial personnel selection, employee wages, benefits and bonuses, and make larger financial decisions according to the market environment and the company's own situation; In management, the parent company does not interfere with the production and operation activities of its subsidiaries with mandatory plans, but mainly with indirect management; In business, encourage subsidiaries to actively participate in competition and seize market share; In terms of interests, the parent company tends to favor its subsidiaries to enhance its strength.
The centralization and decentralization of financial management authority are opposite, and the resulting advantages and disadvantages are roughly the opposite. Advantages of financial management of decentralized enterprise groups;
(1), the subsidiaries are full of enthusiasm, make quick decisions, easily capture business opportunities and increase profit opportunities;
(2) Reduce the decision-making pressure of the parent company and reduce the negative effects of direct intervention by the parent company.
Defects in financial management of decentralized enterprise groups;
(1), it is difficult to unify command and coordination, and some subsidiaries ignore or even damage the overall interests of the company because they pursue their own interests;
(2) Weakening the financial control function of the parent company and failing to find out the risks and major problems faced by the subsidiaries in time;
(3) It is difficult to restrain operators effectively, which leads to the problem of insider control of subsidiaries and discourages the enthusiasm of employees.
(3) Decentralized management under the guidance of the group headquarters
There is neither absolute centralization nor absolute decentralization. The decentralized management mode under the guidance of the group headquarters emphasizes centralization on the basis of decentralization. It is a centralized model that integrates fund raising, utilization, recovery and distribution, participates in market competition and makes multi-level decision from bottom to top. This model can not only give full play to the financial control function of the group parent company, stimulate the enthusiasm and creativity of the subsidiaries, but also effectively control the risks of the operators and subsidiaries, which is conducive to overcoming the defects of excessive centralization or decentralization and integrating the advantages of centralization and decentralization. It is an ideal model pursued by many enterprise groups.
(d) The main factors that should be considered when selecting the financial management mode of the group.
The three financial models have their own advantages and disadvantages, and enterprise groups should weigh the advantages and disadvantages according to their own conditions. Generally speaking, when choosing the financial management mode, enterprise groups should mainly consider the factors such as the concentration of equity, the nature of subsidiaries, the size of the group, the operator style of the parent company and so on.
Second, the realistic conception of the choice of financial management mode of enterprise groups
According to the different financial management contents of specific enterprise groups, the degree of centralization and decentralization of financial management is weighed and selected, so as to find a breakthrough to solve the problems existing in the selection of financial management mode and the operation of enterprise groups.
(A), a strong centralization
1, cash management
Capital is the blood of an enterprise, the starting point and ending point of capital circulation is cash, and other assets are the transformation forms of capital in circulation. Therefore, cash management is the center of financial management. How to concentrate the scattered cash of the parent company and subsidiary company, reduce the cash holding level and ensure the capital demand of key projects of the group is an important problem faced by the group financial management, which provides conditions for the centralized financial management of subsidiaries to strengthen cash management. Must strengthen:
(1), bank account management. In view of the problem that subsidiaries of enterprise groups intercept cash by opening accounts in banks privately, the parent company should strengthen the control of opening accounts in subsidiaries. The establishment of a subsidiary in a bank must be approved by the parent company, and the account opened must be managed by the financial department of the parent company.
(2) Cash forecast. In order to make cash management change from passive to active and overcome short-term behavior, the parent company should clearly understand how large the existing funds of the group can operate, how large the financing scale is, and the sources of funds that can be sought. For the financial department, it is necessary to keep track of the cash that can be used and must be paid at every time.
(3) Fund raising management. On the basis of cash forecast, the parent company studies the composition of the group's capital sources and chooses the best financing method. The funds required by subsidiaries shall not be raised from outside without authorization, but from within the group, and the financial department of the parent company shall be responsible for this business. In order to improve the efficiency of the use of funds, we can use the law of value to realize the paid use of funds within the group, that is, when the subsidiary borrows money from the parent company, it pays interest.
2. Budget management
The centralized financial management of the parent company to the subsidiary company is also reflected in the fact that the parent company has the final decision on guiding the budget of the subsidiary company. According to the development plan of the group, the parent company puts forward a certain general goal, which is used to prepare the company's long-term plan and annual plan, and decomposes the indicators and distributes them to subsidiaries. The subsidiary shall prepare the annual budget according to the indicators issued by the parent company and the specific conditions of the unit, and submit it to the parent company for approval. The parent company has set up a special budget management committee to review and balance the budgets of its subsidiaries and prepare the group budget. The approved budget will be distributed to all subsidiaries to guide their business activities. In the process of budget implementation, the parent company should adjust the deviation at any time according to the actual situation to ensure the completion of the budget.
(B), the proper combination of centralization and decentralization
1, investment management
The investment scale and direction of the group greatly affect the development direction of the group company, so the investment management of the group tends to adopt centralized management. After the parent company centrally manages the funds of its subsidiaries, the investment management can be appropriately decentralized, that is, the subsidiaries have the right to formulate investment projects below a certain amount, but they generally account for a small part of the group's investment. Some groups divide the investment authority according to the level of subsidiaries, and apply to the parent company for investment projects exceeding the prescribed limit. The parent company should establish and improve the system of project establishment, approval, control, inspection and supervision of foreign investment of subsidiaries, attach importance to the follow-up management of investment projects, prevent the phenomenon of only investing without management, and standardize the investment behavior of subsidiaries.
2. Profit distribution
As the main body of enterprise group, the parent company's profit distribution is the core content of group distribution. The parent company can be established by holding shares, which corresponds to the profit distribution method of dividend distribution. For the parent company, the increased profits of subsidiaries should be kept in the parent company according to a certain proportion to meet the long-term development needs of the group, and at the same time, the interests of subsidiaries and employees should be gradually increased, which is the power source of group cohesion. The total amount of wages and funds allocated to subsidiaries should be controlled, and the inspection and control system for the distribution of wages and bonuses of subsidiaries should be established and improved. Subsidiaries should strictly follow the principle of salary and bonus accrual stipulated by the parent company and distribute independently within the scope of salary accrual.
(C), extensive and thorough decentralization
The centralized financial management of parent-subsidiary companies does not exclude the exclusive accounting of subsidiaries, and the equal and independent legal person status of parent-subsidiary companies provides the basis for the decentralization of financial management. Subsidiaries operate independently and are responsible for their own profits and losses within the decision-making scope approved by the parent company, and enjoy the legal right to operate their own production, sales, investment and distribution. The subsidiary operates products from research and development, production, sales to after-sales service. The independent accounting status of subsidiaries is reflected in the conclusion of contracts, business purchase and sale, accounting of assets and liabilities and retained earnings. The system of preparation, audit, bookkeeping and reporting shall be handled by subsidiaries in accordance with the financial accounting system and relevant regulations.
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