The 14th Chinese CFO Conference & Figures of the Year Award was held in Beijing on Friday, April 26. Leading accounting figures from 200 multinational corporations in 30 countries were gathered to share cutting-edge achievements and trends of the global accounting industry.
The conference evaluated Chinese CFOs and enterprises regarding their innovation in finance management, exploration of new business models as well as balance of quality and return, and awarded certificates and medals to the outstanding ones of 2018.
CMIG won the award of “Excellent Developer of Finance Shared Services of Chinese CFO 2018” with its prominent practices in the field of China’s finance shared services.
Based on its finance management strategies, CMIG established in-depth cooperation with Kingdee and set up the finance center in June 2015 to provide finance shared services for the Group and enterprises it has invested.
In light of independence of finance services, CMIG Finance Intelligence Limited (hereinafter referred to as “CMIG Finance Intelligence”) was established in September 2016. The company runs as an independent entity dealing with the finance center’s businesses including the general ledger, taxation management, accounting management, income and expenditure settlement, development of finance information system, finance consultation, auditing and due diligence.
CMIG Capital together with Kingdee opened a new chapter for finance shared services of the Group where various types of businesses can be dealt with through specialized division of labor on the same platform. Employees may access all kinds of services by themselves via platforms such as task pool management, role management, portal and workflow management as well as multi-organizational operations. Besides, the integrated imaging system may scan and store receipts, achieving the perfect combination of electronic and actual flows.
Innovation in CMIG Capital’s Finance Shared Services and Experience to be Drawn on
1. A standard process of closing entry is developed and followed, a double-entry checking platform is built and the format of reporting is standardized, all of which improve efficiency of settlement and report generation.
The finance center adopts measures such as development of a standard process diagram of closing entry, a platform for double-entry checking as well as standardization of reporting format, all of which improve efficiency of report generation and help complete settlement of accounts of over 1,000 subsidiaries within three working days. Output of layered consolidated reports and the finance statement package not only fulfill requirements of disclosure to external regulatory agencies but also supports needs of internal finance management and analysis.
2. A system of one-point entry of financial data that can be shared throughout the process is developed to fulfill the Group’s needs of business and finance analysis as well as performance management.
A standard finance information system has been built to gradually bring businesses into online processing and promoted it among subsidiaries. With over four years’ development, the Group’s financial data pool has been gradually formed, which became the basic data source of business and finance analysis, finance management and performance evaluation, and support the Group’s business development.
3. Delegate management functions to the finance center and strengthen finance management of subsidiaries.
In addition to basic operation of “accounting factory”, the finance center undertakes the development of the finance management system at the Group level, and the system’s promotion and delivery in each subsidiary, strengthen supervision and standardization of cost control, bank account management, report issuance, taxation management and informatization, and enhance finance management and control of subsidiaries.
4. Innovation of organizational structure: multi-center operation to improve the efficiency and quality of services and balance operational cost.
Multi-center operation with matrix management of employees and businesses may improve the efficiency and quality of services as well as clients’ satisfaction, and balance increasing operational cost for sustained development.
5. Finance services that covers diversified demands of both the Group and invested enterprises.
CMIG Capital encompasses diverse businesses of industries that vary hugely and each subsidiary may have individualized demands in finance management. The finance center accommodates to such demands of the Group and invested enterprises and enforces layered management of items including types of costs and systems of account titles while subsidiaries may expand on the basis of the Group’s management and control level, thus supporting both generalized and individualized needs.
6. Based on management and control features of the diversified investment group, respond flexibly to the Group’s various demands in new establishment, mergers, exits and listings.
In light of specific business features of CMIG Capital, the finance center formulates elastic management and operational guidance, and remain flexible to accommodate to various demands such as new establishment, mergers, exits and listings.