Financial Shared Services Model: Advantages and Applications in Electric Power Enterprises

This article explores the benefits and implementation of a financial shared services model in electric power enterprises. It examines the model's characteristics, including its ability to enhance efficiency, improve risk control, and streamline business processes.

In the course of its operation, the organizational structure is constantly optimized and financial standards are standardized systematically, thus it can achieve a continuous improvement in work efficiency, a gradual reduction of production and operating costs, and a continuous increase in the added value of financial management.

Therefore, the application of a new management model, such as financial shared services, to the production and operation of electric power enterprises can effectively improve the original redundant organization of electric power enterprises. It can also change the traditional management model of electric power enterprises, which is too old, and constantly update the management philosophy of enterprises. This provides a professional service management model for electric power enterprises from a zero-market perspective and creates favorable conditions for all departments to quickly improve the efficiency of the work.

Against the background 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.