Let's start with the conclusion:The integration of business and finance is a management concept that aims to achieve a more efficient and collaborative management style by integrating knowledge, processes and systems in the business and finance fields. The integration of industry and finance is divided into three levels, namely the integration of industry and finance, financial business, and business financialization. In other words, the integration of industry and finance is one of the three levels of integration of industry and finance.
There are three levels of integration of business and finance.
Let's break them down one by one.
1.Definitions
The integration of business and finance is the most basic integration of business and finance, which refers to the comprehensive integration and integration of business and financial IT systems, so that business processes and financial data can be seamlessly connected and shared.
2.Ways to do it
Through the integration of the early purchase, sale and inventory system and financial system, and then gradually expanded to the production system, human resources system, office system, etc., the basic framework of ERP is formed. With the development of a more professional digital platform for marketing, sales and service - CRM system and its interoperability with financial systems, the scope and depth of business and financial integration will be further expanded.
3.Internal Controls & Compliance
The integration of industry and finance provides a strong guarantee for internal control and reporting compliance, and ensures the realization of internal control requirements for all major business cycles of enterprises. Taking CRM as an example, the integration of business and finance can achieve comprehensive process control through digitalization, improve the quality of internal control of the sales and collection cycle, and provide a reliable basis for internal control testing and auditing.
Schematic diagram of the integration of business and finance.
1.Core
Financial businessization is what everyone usually calls itBusiness FinanceIt emphasizes that in addition to providing data, finding problems and providing suggestions, the finance department should also promote the real solution of business problems, and further promote the cognition, consensus and action of the business side on the problem.
2.Financial analysis framework
Divide the process of financial analysis from data to value:Process layer, monitoring layer, insight layer, driving layer, target layerFive levels. The financial driving layer is the key to this, and it is necessary to promote the business side to understand the problem, form a consensus, formulate measures, and continuously follow up the effect through professional analysis and insight to achieve real business goals.
The value goal of financial operationalization.
1.Concept
Business financialization is the highest level of integration of business and financeIt requires business managers to have certain financial knowledge and financial thinking to achieve rational decision-making and scientific management.
2.Impetus and cooperation
Business financialization emphasizes that business managers understand finance, and financial personnel understand business, so as to achieve two-way running. The key to driving force is to make the value of financial analysis truly exert itself through in-depth communication, consensus formation, and promotion of the implementation of measures, so as to achieve the business objectives of the enterprise.
Schematic diagram of the guidance of the concept of business financialization.
Overall, the integration of business and finance is a multi-layered concept that achieves synergies by integrating all aspects of business and finance. At different levels, the role of finance is not just to provide data and advice, but also to drive business problem-solving, consensus, and goals. Achieving the integration of business and finance requires the use of information technology systems and closer cooperation and communication between business and finance.
The author of this article is the CFO of Fanxiang SalesMr. Guo Baobin, the article is included inLatest Special Issue"How Listed Companies Can Fight a Win-Win Battle for Compliance and Growth".Welcome to the original eBook: