Problems And Solutions Of Financial Management

Open Journal of Social Sciences, 2020, 8, 251-257

https://www.scirp.org/journal/jss

ISSN Online: 2327-5960

ISSN Print: 2327-5952

DOI:

10.4236/jss.2020.83023 Mar. 20, 2020 251

Open Journal of Social Sciences

Problems and Solutions of Financial

Management Transformation under the

Establishment of Financial Shared Service

Center

Shuqi Jia

School of Accounting, Xi’an Eurasia University, Xi’an, China

Abstract

This paper starts from elaborating the importance of Financial Shared Servic-

es, and then analyzes financial management-

related risks faced by enterprises

in establishing financial sharing centers. Also, it puts forward the advice of

improving Financial Shared Services in application. This paper aims to im-

prove enterprise’s effectiveness and efficiency of financial management work

during and after the establishment of Finance Shared Service Center (FSSC).

Keywords

Finance Shared Service Center, Financial Management, Staff Transformation

,

Accounting, Information Platform

1. Introduction

Corporation thinking, decision-making and corporate culture transcend nation-

al boundaries along with the globalization of enterprises and the increasing

number of transnational corporations. Besides, in order to maintain the compe-

titiveness of enterprises, to improve the efficiency of operation, enterprises and

other organizations strive to be condense and flat. Also, the widespread use of

“big data”, “financial intelligence”, “cloud computing”, “internet of things” and

other information intelligence processes contribute to effective disposal mass

data and information.

Financial Shared Service, as a Shared Service in the financial area of an appli-

cation, adapted to the today’s conditions, not only effectively reduces the enter-

prise financial cost, but also greatly improves the processing efficiency of the en-

How to cite this paper:

Jia, S. Q. (2020).

Problems and Solutions of Financial Ma

n-

agement Transformation under the Esta

b-

lishment of Financial Shared Service Ce

nter

.

Open Journal of Social Sciences

, 8, 251–257.

https://doi.org/10.4236/jss.2020.83023

Received:

January 27, 2020

Accepted:

March 17, 2020

Published:

March 20, 2020

S. Q. Jia

terprise business.

However, when building the FSSC, enterprises may face some problems in fi-

nancial management, which may affect the accounting efficiency, even cause the

waste of enterprise resources, and have an adverse impact on maximizing

shareholders’ equity.

This paper analyzes potential impacts and proposes solutions aimed at mak-

ing enterprises more efficient and effective in building FSSC.

2. Conception of Financial Shared Services

Schulman et al. (Schulman et al, 1999) define Shared Services as to concentrate

resources which across organizations within the corporation and jointly provide

professional services for diversified internal cooperation with lower operating

costs and more flexible services, so as to ultimately improve the enterprise value.

Su (Su, 2019) argues that Financial Shared is a process of dealing the financial

business with high–tech information technology. Through Finance Shared Ser-

vices, the structure of the enterprise’s financial department is rearranged scien-

tifically, and the financial business process is further standardized. And operat-

ing costs are well controlled and reduced.

3. The Strategic Goal of Financial Shared Service Center for

Chinese Enterprises