Financial Shared Services Model: Benefits and Implementation for Electric Power Enterprises

Against the backdrop of the rapid development of network information technology and globalization, many enterprises in China are actively exploring and thoroughly studying the financial shared service model, trying to make the financial shared service model more applicable to their own enterprises. An overview of the application status of financial shared service centers at home and abroad and a comparison of them reveals that the financial shared service model has the following characteristics: First, it can provide accounting. The financial shared service center is essentially an independent entity that can provide internal accounting services and receive remuneration for its services. On this basis, it competes with external suppliers by operating in the market in a corresponding way. Secondly, it can provide back-office support services. Based on centralized finance, financial sharing breaks down the traditional boundaries of accounting units and provides back-office services and expenditures for each business unit by adopting a streamlined approach to business processing. Thirdly, it can enhance the ability of risk control. In the process of its application, the financial shared service center can promote its own service quality based on the scale effect, so as to continuously reduce its service costs and enhance its own risk controllability. Fourthly, it can effectively improve the company's information technology level. With the financial shared service center in the process of in-depth application of comprehensive information systems, it also brings in the introduction of big data, mobile applications, and other information technology. In the whole process of online delivery and management of corporate financial business, it will also significantly improve the effectiveness of the work of the majority of the enterprise staff reimbursement, contract payments, and other business, which is also reasonable for the continuous improvement of the level of information technology of the enterprise staff.

Based on the basic principles of financial sharing, the enterprise financial management system can be divided into the following three major dimensions: First, strategic finance. Strategic finance is usually divided into corporate finance departments, which formulate and are responsible for the financial strategies of electric power enterprises, and carry out integrated deployment and efficient control of all financial management work of the enterprises. Second, shared finance. In practice, the shared finance is usually divided into shared finance centers. The shared finance is mainly responsible for the accounting of the included units, and on the basis of batch processing of the accounting business of the included units, quickly provide standardized accounting information services, timely presentation of financial statements, and comprehensive financial supervision. Thirdly, business finance. In electric power enterprises, business finance is usually divided into the grassroots unit finance, which leads and implements the general strategy of enterprise finance and carries out the actual financial management work of the enterprise.

In the actual production and operation process, electric power enterprises usually use embedded, interactive, and other ways to guide the entire process of the usual production and operation of the grassroots units, and work with the grassroots departments to control risks and create production value.