Disadvantages of traditional financial management mode

Under the centralized management mode, the financial decision-making, management and control rights of subordinate enterprises are concentrated in the financial management department of the group, and each subsidiary has only the daily business decision-making power and specific execution power, and is responsible for short-term financial planning and daily business management. This mode can't give full play to the work enthusiasm of subordinate units, and the first-line information transmission is easy to be distorted, which easily leads to invalid decision-making information, low efficiency and inability to quickly respond to complex and changeable environment.

Decentralized financial management mode: Under the decentralized management mode, the financial decision-making, management and control rights of subordinate enterprises are all delegated to member enterprises, and the financial management department of the group centrally manages and approves major financial matters involving enterprises, and generally only gives certain guidance to subsidiaries and does not directly participate in the business activities of subordinate units.

It is easy to cause each subordinate unit to fight independently and ignore the overall financial objectives of the group, which leads to the inconsistency between the subordinate units and the group's financial objectives.

On the other hand, the result of separate financial management of each unit may lead to the inability to adjust the surplus and deficiency of funds within the group, reduce the overall operating efficiency of funds and increase financial risks.

Legal basis:

People's Republic of China (PRC) Company Law Article 163 A company shall establish its financial and accounting systems in accordance with laws, administrative regulations and the provisions of the financial department of the State Council.

Derivative problem:

How does the company hire an accounting firm?

The appointment and dismissal of the accounting firm that undertakes the company's audit business shall be decided by the shareholders' meeting, the shareholders' general meeting or the board of directors according to the provisions of the company's articles of association.

When the shareholders' meeting, shareholders' meeting or the board of directors of the company votes on the dismissal of an accounting firm, the accounting firm shall be allowed to state its opinions. "

This provision only applies to accounting firms that undertake the company's audit business, that is, accounting firms entrusted by the company to independently audit the company's financial and accounting reports and issue audit opinions, and cannot be used for accounting firms that only provide accounting consulting services to the company.