At present, the global economy is at the beginning of a new cycle. With the emergence of a new round of scientific and industrial revolution, China’s economy will enter a new era to achieve high-quality economic growth. To adapt to the new normal of the economy, the group enterprises are also actively seeking for transformation and development and expecting to realize operation and management upgrading with the help of new technologies.
The shared finance model of group enterprises came into being
Under the new normal of the economy，large enterprises will move towards multi-organization, multi-industry, and multinational operations. In the process of development, the group enterprises are faced with challenges in operation and management, and the challenges of financial management are particularly prominent, which mainly reflected in the following four aspects：
1. The Group’s operating costs continue to increase. As the business and the organizational structure continues to expand, if each subsidiary needs to be equipped with duplicate financial organizations and a large number of human resources engaged in simple basic work, the operation and management costs of the company will be very high, which will inevitably affect the development of the company；
2. Difficulty in group control continues to increase. With a large number of investments, mergers, acquisitions, and business reorganization, the influence of factors such as more management institutions, larger differences in business formats, and longer management chain will inevitably lead to increased difficulty in management and control of the group enterprises. How to avoid financial management, human resource management, and resource allocation of molecular companies all separating？How to strengthen business supervision？How to strengthen risk control？How to achieve global operation control? These are all problems faced by group companies after expansion.
3. Group’s right to know is challenged. The member enterprises of the group are distributed in different regions, and the business information, operation information, and financial information are on different platforms. Without effective integration, the quality and authenticity of each member’s financial data cannot be verified in real-time, and the group’s right to know the operations of its subsidiaries will be challenged.
4. Financial risks continue to increase. Group companies’ cross-region, multi-format, and international operations, and the uncertainty of the external environment make the financial management risks continue to increase. If the group headquarters cannot effectively supervise and control the financial status of the subordinate enterprises, the financial risks faced by the group are also increasing. If a molecular company has problems, it may involve other companies, causing a chain reaction and accelerating the risk.
In this context, shared services came into being. Group companies can integrate resources globally, reduce costs, improve risk management, and control capabilities through the shared service model, which makes the entire group more efficient. The application of shared services in the field of corporate finance can effectively support the group’s corporate strategy, promote its core business development and improve financial management while laying the organizational foundation, digital foundation, and management foundation for the digital transformation of corporate finance.
The important role of consulting and planning in the construction of shared finance
Shared finance relies on information technology and is based on the financial business process, aiming at optimizing organizational structure, standardizing the working process, improving management efficiency, reducing operating costs, and creating service value. It brings accounting services in different regions, different legal persons, and within the same time range to a unified platform for unified accounting and reporting.
Enterprises need to carry out unified planning, design, and demonstration for the construction of a shared finance service center. The consultation planning process is to help enterprises to answer the question of whether it is suitable to build a shared finance service center, what kind of shared finance service center to build, how to build and how to operate, which is a necessary stage for all enterprises to build shared finance service.
Yonyou Shared Finance Accompanied Consultation Planning + Digital Platform Implementation Plan
In order to support the development of group enterprises and improve the level of financial management, Yonyou launched a new digital shared finance service platform based on NC Cloud under the guidance of the digital transformation of enterprises. Yonyou provides the service of “concomitant consulting planning + new digital platform deployment” to comprehensively help the construction of shared finance service center of enterprise groups.
Relying on the NC Cloud shared finance cloud platform, using cloud computing, mobile Internet, artificial intelligence, and other new technologies, Yonyou helps enterprises achieve full business sharing and realizes the integrated application of industry finance and tax. In this way, enterprises can more easily and quickly build their own shared finance system, improving their operational efficiency and management level, and at the same time realize the great sharing of people, business, and data.
Historical data show that shared finance center can bring significant benefits：For example, the financial integrated operating cost is reduced by 10%-20%；The reimbursement cycle of employees is shortened by 20%-30%; Document approval efficiency improved by 25-50%；End-of-month checkout efficiency increased by 10%-20%.
In the planning and design stage of shared finance service, Yonyou built a shared finance center for enterprises that is“Feasibility study – consultation planning – system construction – operation guidance integration”advisory services，the main contents of each stage are as follows:
First，the feasibility study stage of the project mainly solves the “why to build” and “can build” problems. Through the evaluation report of the feasibility analysis of the financial operation status, the feasibility analysis of the shared finance service construction plan, the feasibility analysis of the shared finance service construction benefit, and the financial feasibility analysis of the shared finance service construction risk, it supports the senior managers of the enterprise to make scientific decisions on whether to implement the project.
Second，the current stage of investigation is to find out the current situation. By providing financial work content tables, financial personnel information tables, financial operating cost tables, financial information system tables, financial status analysis reports, etc., it helps companies straighten out the status of financial work operations, finds management cruxes, and lays down various types of financial sharing service planning and design basis.
Third，in the planning and design stage of the center construction, it mainly solves the problems of “what to build” and “how to build”, which mainly includes overall design and segment planning. The overall design clearly defines the positioning, objectives, blueprints and paths of shared finance construction, design, and selection of construction methods, etc. Segment planning determines the construction goals, organizational personnel and business scope, functional positioning and division of powers, prerequisites and implementation methods, post settings and business processes, information system composition and functional requirements, time planning and implementation paths, etc.
Forth. The internal operation design of shared finance service center mainly solves the problem of “how to manage”. It helps enterprises establish a shared center management and control structure, compile operational management systems, optimize, and standardize business operation processes. It establishes service quality management, service billing management, operational performance management, knowledge management, and employee career development planning.
Next, based on Yonyou NC Cloud large enterprise digital platform, Yonyou’s shared finance service provides a “business-finance-tax-investment integration” full-service sharing solution to enterprises. It includes five major platforms: “reporting platform, video platform, operating platform, operating platform, the integrated platform”, supporting full business sharing such as cost-sharing, receivable sharing, payable sharing, contract sharing, capital sharing, asset sharing, and general ledger sharing. It seamlessly integrates with front-end business systems such as supply chain, asset management, project management, procurement management, sales management, and billing management to achieve a high degree of industry-financed integration. It provides value-added tax platform functions, solves the automatic identification of input tax invoices, collects fakes, integrates with the tax cloud to solve electronic invoice reimbursement, integrates with the financial cloud account reimbursement to achieve mobile fee control, and business travel service management. Finally, it realizes full-person application, full-service sharing, and full-process management and control, meeting the high-availability and high-concurrency business needs of enterprises
Yonyou shared finance service provides shared finance construction plans and project implementation for more than 100 enterprises in China, Anshan Iron and Steel Group is one of them. As one of the large enterprises with direct management by the central government, Anshan Iron and Steel Group has seven distinctive production bases in Northeast China, Southwest China, North China, Southeast China, and South China, and is the most resource-advantageous iron and steel enterprise in China. The shared delivery model of “combined consulting integration” provided by Yonyou meets the needs of long-term construction of large enterprises such as Anshan Iron and Steel Group. At present, the shared finance services of Anshan Iron and Steel Group has covered more than 10 industrial sectors, more than 400 group-level processes and more than 400 organization-level processes；More than 100 units with online expenses, more than 70 units with online receivables, more than 80 units with online payables, and more than 40 units with online general ledger；Through the construction of shared finance, Anshan Iron and Steel Group realizes the deep sharing of the whole business, including expense sharing, receivables sharing, payables sharing, capital sharing, general ledger sharing and so on. Secondly, Anshan Iron and Steel Group achieves in-depth industry and financial integration: such as invoice sharing, heterogeneous ERP multi-dimensional integration, internal related transactions, bank-enterprise direct connection, and central data warehouse.
The establishment of shared finance center is an effective way to realize the digital transformation of financial management. It can realize the optimization of financial resources, establish financial accounting standards, and improve the level of financial management. At the same time, it improves the internal control of financial compliance and effectively reduces operational risks. Based on the NC Cloud digital platform for large enterprises, Yonyou will serve more large enterprises for financial sharing service construction to support the implementation of corporate strategy, strengthen the group’s management and control ability, and realize the implementation of financial digitization!