What are the financial management models?

What are the financial management models?

What are the financial management models? In the workplace, it mainly depends on the individual's ability to work. Only by learning healthy competition can we open the way for ourselves. The contacts in the workplace are also accumulated bit by bit, and there are many traps hidden in the workplace. The following are related articles about financial management mode.

What financial management modes include 1 1 and decentralized financial management mode?

Decentralized financial management mode refers to the financial system in which subsidiaries have complete financial management decision-making power and the parent company mainly indirectly manages subsidiaries. Subsidiaries have full decision-making power in capital integration, investment application, financial revenue and expenditure, selection and dismissal of financial personnel, wages, benefits and bonuses of employees, and make major financial decisions according to the market environment and the company's own situation.

2. Financial management mode combining decentralization and centralization.

Extremely centralized, subsidiaries have no initiative flexibility, and the group's financial and operating mechanisms are bound to be rigid; On the contrary, excessive decentralization will also lead subsidiaries to blindly pursue individual economic interests and ignore the overall interests of the group.

The combination of centralization and decentralization, emphasizing proper centralization and decentralization, can not only give play to the financial adjustment function of the group parent company, stimulate the enthusiasm and creativity of the subsidiaries, but also effectively control the risks of the operators and subsidiaries. This model overcomes the defects of excessive decentralization or centralization to a certain extent, and integrates the advantages of centralization and decentralization.

What are the financial management models? 2 1, centralized financial management system.

Centralized financial management system is a highly centralized organizational form of financial power. The parent company exercises strict control and unified management over its subsidiaries. Major financial matters such as fund scheduling, asset management, investment decision-making, internal control, personnel appointment and dismissal are managed by the parent company. The accounting person in charge of the subsidiary is responsible for the headquarters and implements vertical leadership, and its salary and benefits are determined by the headquarters. The manager of a subsidiary company shall not interfere in its work, let alone have the right to appoint or remove it. Let's take a quiz before studying. Click to test whether I am suitable for accounting.

Its characteristics include highly centralized accounting information contact, strict fund management system and strict internal control. The advantage of adopting this model is that it is conducive to formulating and implementing a unified financial policy, giving full play to the financial management function of the parent company, reducing operational and financial risks and ensuring the realization of the group's strategic objectives. The disadvantage is that the high concentration of financial power is easy to dampen the enthusiasm of subsidiaries, which makes the financial management of the group lack horizontal cooperation and may lead to obstacles in information flow.

2. Decentralized financial management system

Decentralized financial management system distributes financial responsibility and power to subsidiaries, and the parent company and subsidiaries keep relatively loose contact in management and finance. Subsidiaries can make major financial decisions according to the market environment and company conditions. The parent company mainly manages them indirectly and strengthens its own functions of information processing, control and performance evaluation. The most important feature of decentralization is that the investment center responsible for cost target, profit contribution target and capital appreciation moves down.

The advantage of this model is that subsidiaries can actively and flexibly respond to the market and reduce the decision-making pressure of the parent company. The disadvantage is that it is difficult to unify the command, which weakens the financial control right of the parent company, and sometimes the subsidiaries will disregard the overall interests of the group for their own interests.

3. The mode of combining centralization and decentralization.

The mode of combining centralization and decentralization appropriately distributes financial power between the parent company and subsidiaries, forming an organizational structure of moderate decentralization or moderate centralization. In practical work, absolute centralization and absolute decentralization are relatively few, and most enterprise groups choose to combine them.

In terms of power structure, it is generally divided into three levels: the highest decision-making level, the middle management level and the grassroots level. The top decision-making level is attended by the vice president of finance, whose main function is to implement the strategic management of the whole group, make financial strategic decision-making and management, long-term development planning, important personnel arrangements and surplus distribution.

There is no uniform standard for the distribution of financial management authority within enterprises, but it varies from time to time and from enterprise to enterprise. The combination of centralization and decentralization is beneficial to the combination of centralization of major financial decision-making power and moderate decentralization of management decision-making power.

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What are the three centralized financial management modes?

definition

Centralized financial management mode means that all kinds of financial decision-making power of enterprise groups are concentrated in the group company, which centrally controls and manages the operation and finance within the group and makes decisions, which must be strictly implemented by member enterprises.

Financial management mode

trait

Financial management decision-making power is highly concentrated in the parent company, and subsidiaries only enjoy a small part of financial decision-making power.

superiority

Answer: It is convenient to command and arrange unified financial decisions and reduce administrative costs.

B: It is beneficial for the parent company to exert its financial control function and realize the unified financial goal of the group.

C: It is conducive to giving full play to the role of financial experts of the parent company and reducing the financial risks and operational risks of the company.

D: It is conducive to the unified adjustment of group funds, ensuring funds and reducing the cost of funds.

disadvantage?

A: The financial management authority is highly concentrated in the parent company, which is easy to dampen the enthusiasm of the operators of subsidiaries and inhibit the flexibility and creativity of subsidiaries.

B: Although a high degree of centralization can reduce or avoid some risks of subsidiaries, the decision-making pressure is concentrated in the parent company, and once the decision-making is wrong, it will cause huge losses.

Decentralized type

definition

Refers to the proper division of financial control, management and decision-making power of group companies and member enterprises according to the principle of materiality. Group companies only pay attention to directional and strategic issues.

trait

Financially, subsidiaries have full decision-making power in capital integration, investment application, financial revenue and expenditure expenses, appointment and dismissal of financial personnel, wages, benefits and bonuses of employees, and make large financial decisions according to the market environment and the company's own situation.

In management, the parent company does not interfere with the production and operation activities of its subsidiaries with mandatory plans, but mainly with indirect management.

In business, encourage subsidiaries to actively participate in competition and seize market share.

In terms of interests, the parent company tends to favor its subsidiaries to enhance its strength.

Financial management mode

superiority

A: Subsidiaries are highly motivated, make quick decisions, and easily seize opportunities and increase profit opportunities.

B: Reduce the decision-making pressure of the parent company and reduce the negative effects of direct intervention by the parent company.

disadvantage?

A: It is difficult to unify command and coordination. Some parent companies ignore or even harm the interests of the company because they pursue their own interests.

B: Weakening the financial control function of the parent company can't find out the risks and main problems faced by the subsidiaries in time.

C: It is difficult to restrain operators effectively, which leads to the problem of "internal controller of subsidiaries" and discourages the enthusiasm of employees.