The State-owned Assets Supervision and Administration Commission and the Ministry of Finance have successively issued a series of documentsEncourage group enterprises to actively explore financial sharing services
For example, on December 6, 2013, the Ministry of Finance issued the "Enterprise Accounting Informatization Work Specification".
The document clearly states that:For large group enterprises with a large number of branches and subsidiaries and a wide range of business distribution, information technology should be used to promote the concentration of accounting work by establishing a financial shared service center
Recently, the Accounting Department of the Ministry of Finance pointed out in the summary of the work of handling suggestions and proposals in 2021 that the Ministry of Finance attaches great importance to accounting informatization and encourages enterprises to actively carry out financial sharing practices.
In the future, it will gradually establish a cross-platform and structured accounting database, and give policy encouragement and support to large and medium-sized enterprises that want to implement the financial sharing model.
The reason why the state vigorously supports the development of the financial sharing model is thatThe financial sharing model is a modern management method adopted on the basis of financial accounting to improve the economic efficiency of enterprises.
With the development of global operations and the expansion of enterprise scale, the business scope of the group company has become increasingly complex.
In addition, the management of employees is relatively scattered, and the problems of high management costs, high operating risks, and poor internal information communication in the process of enterprise working capital management have also been exposed.
The quality of working capital management will play an important role in the survival and development of enterprises.
In this context, the financial sharing model is combined with working capital managementIt is convenient for enterprises to grasp financial information in a timely manner, improve organizational efficiency and information transparency, provide a basis for working capital management decisions of enterprises, and maximize the level of working capital management
The financial sharing model originated in foreign countries and has been more widely used after being introduced in China.
However, China's financial sharing model is still in its infancy, and there are few companies that have introduced the financial sharing model, and Midea Group is one of the earliest enterprises in China to successfully establish a financial sharing service model.
Based on the above background, this paper selects Midea Group as the research object.
Midea Group is one of the top ten home appliance companies in China and has a relatively complete white goods industry chain.
As we all know, the white goods industry requires a large amount of capital in terms of material procurement and product circulation, so the quality of working capital management directly affects the survival of the white goods industry.
Midea Group applies the financial sharing model to working capital management, and has carried out a series of innovations according to its own actual situation, which has greatly improved its working capital management capabilities.
Based on the analysis of the impact path of working capital management on the financial sharing model, the relevant experience is summarized, and the areas that need to be improved are put forward, hoping to play a certain reference role for other home appliance group enterprises.
In recent years, with the construction of the financial sharing model, the efficiency of the financial accounting and capital payment of enterprises has been significantly improved.
However, in terms of the combination of financial sharing model and working capital, the research is not deep enough, and there are problems such as insufficient data comparison before and after the establishment of the model.
In addition, some companies lag behind in the idea of establishing a financial sharing model, and do not organically combine the financial process with the business process.
Therefore, this paper selects Midea Group, which has rich experience in the construction of financial sharing model, as the research object, and combines the financial sharing model with working capital management to provide reference for home appliance enterprises that want to build or are building a financial sharing model.
On the one hand,From a macro perspective.
Combined with the actual situation of Midea Group, from the perspective of process reengineering and value network, the process of financial sharing affecting working capital management is summarized.
The content of financial sharing and working capital management has been enrichedFrom a macro perspective, it reflects the impact of the financial sharing model on working capital management.
On the other hand,From a micro point of view.
By analyzing the process before and after the implementation of the financial sharing model of Midea Group, a comprehensive analysis is carried out through the increase and decrease trend chart of sub-structure, sub-factor and sub-channel.
And the changes in the level of working capital management before and after the establishment of the financial sharing model are sorted out and analyzed in stagesFrom a micro perspective, it reflects the impact of the financial sharing model on working capital management.
Practical implications. First of all,It can help enterprises understand the relationship between financial sharing model and working capital
The advanced management ideas based on the financial sharing model are consistent with the future management concepts and management directions of household appliance enterprises.
However, some home appliance companies do not fully understand the essential significance of the financial sharing model and working capital management, nor do they reflect the logic of the two.
As an early implementer of the financial sharing model, Midea Group fully combines its own actual situation and is representative.
To this end, this paper actively promotes the dissemination of the concept of financial sharing through the study of Midea Group's financial sharing.
Secondly,It provides a theoretical basis for the construction of a financial sharing model in the home appliance industry.
The financial sharing model has a significant effect on working capital managementHowever, the development of financial sharing in China's electrical industry is not satisfactory, and most of them are still in their infancy.
Therefore, through the analysis of Midea Group's financial sharing model, the optimization process of working capital management and the management method to achieve higher working capital returns were evaluated.
It provides a reference for other home appliance companies that want to use the financial sharing model to accelerate their financial transformation.
Based on the value of the financial sharing model and the important role of working capital management, foreign scholars mainly learn from:Financial sharing modelWorking capital managementwithThe impact of the financial sharing model on working capital managementThese three aspects are studied.
In order to improve the financial management efficiency of enterprises, foreign scholars have begun to introduce the term sharing into the field of finance.
Foreign scholars will:The concept of financial sharing is elaborated as a new management model across business and finance, which includes information technology, organizational management, performance management, quality management and other management methods
Later, foreign scholars began to study the impact of financial sharing model on corporate financial management, especially fund management.
Foreign scholars proposedThe financial sharing model can effectively solve the problems of low financial management efficiency and low quality of financial information of enterprises, and is an ideal solution to reduce costs.
Prahala used related companies as an example to findWhen the financial shared service model is applied to enterprises, the level of financial integration of enterprises will be improved, and the operating costs will also be reduced
Recently, based on the explanatory case of organizational structure, Rothwell et al. analyzed the return on capital, capital turnover and accounts payable of multinational companies, and compared the values before and after the implementation of the financial sharing model, so as to conduct an in-depth study on the application value of the financial sharing service model.
Research on working capital management
The concept of working capital management is the starting point for the study of working capital management.
Around 1930, the concept of working capital was first proposed in foreign academic circles.
Collins defines the net amount of current assets minus current liabilities as working capital in the narrow sense.
Later, NUNN divided inventory and receivables into a permanent portion of working capital.
With the deepening of research, foreign scholars have also begun to pay attention to and extend to other fields of working capital management.
According to the existing research results, foreign experts and scholars have included practical factors in the scope of research.
By collating and analyzing the research of foreign scholars on working capital management, it is found that they pay more attention to the content, influencing factors and management efficiency evaluation system of working capital management.
The content of working capital management
The researcher has learned the capital management mode of enterprises in finance and enriched the content of working capital management.
Subsequently, some scholars proposed that the management of funds should include both individual current assets and some non-current assets, and the basic needs of fund management should be studied according to the overall development of the company.
Elenanca goes a step furtherThe long-term capital in non-current assets should account for the majority of the funds required for the production and operation of the enterprise.
m.Pirttila analyzes the working capital of automobile manufacturing enterprises from the perspective of channels and chains, and believes thatThe management mode of enterprise operating capital includes receivables and payables management and inventory management, and enterprises should achieve a win-win situation by optimizing the governance structure of the first chain.
At the same time, the subjects that need to be paid attention to in fund management are also the focus of scholars' research.
masharipovash.A proposes to focus on the objects, subjects and elements of working capital management, and finds that the impact of digital development on the cash management of listed companies plays an important role.
Factors influencing working capital management
Hofinannerik and Kotzabherbert found that:The behavior of enterprises to improve liquidity by harming the interests of consumers and merchants is not conducive to the long-term development of the company's working capital management.
In the same year, Godfred Adjapong Afrifa selected more than 7,000 companies of various types and found out by analyzing the working capital management of these companiesThe more cash flow a business has, the better its working capital management capabilities
With the diversification of research methods and research perspectives, other scholars such as Atambo analyzed the financial data of large apparel companies, and the results showed:Liquidity ratios and debt ratios have a significant impact on the profitability of apparel retail companies.
On this basis, the upadhyay study found that liquid working capital has a certain impact on the profitability of the automotive industry, namelyA shortage of working capital can affect profits.
Evaluation of the efficiency of working capital management
The use of current asset turnover ratio to evaluate the efficiency of working capital management is the method adopted in the early efficiency evaluation system, but the results evaluated based on this indicator have certain limitations.
Laughlin and Richard pointed out the shortcomings of the original efficiency evaluation systemThe cash cycle can be used as an indicator to evaluate efficiency, so as to improve the original evaluation indicators
Then, Kotzab, Hofmann and Marcus combined the cash flow model and the chain theory into the efficiency evaluation system to minimize the weighted average cost of capital of the enterprises on the chain.
Subsequently, on the basis of previous research, Tamilseivan established a new evaluation model, which combined the multi-index comprehensive evaluation method and the analytic hierarchy process to determine the indicators and proportions in the comprehensive evaluation model of enterprise working capital management performance.
At the same time, Sathikumar studied the policies and measures adopted by Indian SMEs to manage working capital, and used cash turnover period and net working capital as the main indicators to judge working capital management.
With the rapid development of China's economy and society, the financial sharing service model is becoming more and more perfect, and the traditional capital management model has been unable to give full play to its due function.
Most studies abroad have shown thatEnterprises adopt a financial sharing model, which can improve the performance of enterprise operating capital management.
It began with a detailed study of the financial sharing model, pointed out:The financial sharing model can increase the value of each department operating independently, while also saving costs and improving the efficiency of capital management.