The following is a summary of a healthy financial system based on the experience and understanding of a senior CFO:
First, how to understand a healthy financial system.
1. Generally speaking, the organization should be scientific and effective, and the operation should be scientific and efficient;
2. The department culture should be healthy and the team should be sustainable;
3. The accounting, reporting and control system can well support the business development needs of the company;
4. Being able to support the strategic development of enterprises in the depth, height and breadth of value management;
5. It can meet the needs of the company's capital operation (external support may be needed, but this operation can be organized and managed) and daily operation.
This is a healthy financial system.
Whether the financial system is healthy or not is difficult to describe with a universal standard. Generally speaking, a system that meets the needs of enterprise development is a good system.
Second: the framework of a healthy financial system.
1. Department building and team building
2. Construction of accounting system (including system and process)
3. Construction of management accounting system oriented to management and decision support.
4. The financial manager, the leader of the financial system, moves towards Excellence.
5. Professional knowledge support system for financial personnel (such as budget, risk management, internal control, analysis report, taxation, standards, cost management, contract/project management, etc.). -See the course system of this forum for details) (Cost management and risk management are not separate systems in practice, but integrated into management).
Third: the demand for finance.
Let's talk about the demand for finance: the demand for finance comes not only from inside the enterprise, but also from outside the enterprise.
1. Demand from inside the enterprise
Management and employees need to know the financial status, operating results and cash flow of enterprises-the reflection function of accounting information system.
Managers need to use accounting information and financial analysis to understand and locate the problems of enterprises, and manage with the help of corresponding financial tools, which also requires financial personnel to continuously improve the quality and relevance of information (such as introducing standard cost method when conditions permit), as well as the detail and speed of information (such as using information systems).
Enterprises need financial personnel to carry out proper earnings management, so that it looks healthier from the outside, just like makeup, which makes people look more pleasing to the eye.
Enterprises need financial personnel to design and promote the budget as an important management tool to manage the future.
Enterprises need financial personnel to control and supervise, participate in risk management, and make the development of enterprises deviate from the track as little as possible. (including the participation of risk management system and the dominance of internal control; Daily business audit and so on. )
Various decision support analysis, internal investment and financing management.
Support performance management.
Enterprise value management, moving towards capital market.
Meet the complex special management needs of enterprise collectivization, multi-region and multi-industry
2. External capital requirements
Tax requirements
Requirements of creditors such as banks
Requirements of securities regulatory agencies
Owner's requirements
Requirements of other stakeholders
Fourth: How can finance meet the above needs?
In order to meet the above requirements (different enterprises or enterprises at different stages of development may have different requirements), the construction of financial system should be carried out from different aspects.
1. In terms of objectives, it includes what needs, to what extent, time and phased arrangement are met by financial management choices.
2. Organizational structure, including the organizational structure, post setting and job responsibilities required by the Finance Department to achieve the objectives.
3. Talent training and team building, including the use of management tools such as talent selection, training, echelon construction, team harmony and efficient promotion, assessment and encouragement.
4. Improvement of quality and ability, such as professional knowledge and experience, management skills, communication skills, reception skills, etc. And the retention and transmission of knowledge and experience.
5. Construction of departmental culture, establishing and constantly improving a healthy departmental culture in line with the enterprise's situation, such as being positive and cooperating with each other instead of complaining and doubting.
6. In the process of external relations and image building, form a good and healthy relationship with relevant departments inside and outside the company and maintain a healthy image.
7. Establish and optimize accounting and analysis systems (information systems and reporting systems).
8. Division of labor and the construction of institutional processes.
9. Depth and breadth of business participation-business collaboration, monitoring and decision support. With the passage of time, the knowledge and experience of departments, enterprises and industries have been accumulated and transmitted, and the business cooperation and decision support have been gradually deepened, so as to better monitor the risk preference of enterprises.
10. Functional construction in budget, taxation, investment and financing, etc.
Fifth: Requirements for the person in charge of finance
The construction and health of the financial system is the unshirkable responsibility of the chief financial officer.
In order to meet the financial needs of enterprises, finance must carry out some work and arrangements to meet the needs of enterprises continuously and optimally. This mainly depends on the work of the chief financial officer, which puts quite high demands on the chief financial officer.