Five systems of enterprise financial management?

The ancient chief financial officer is called “Mr. accountant” and the modern chief financial officer is called “CFO”. Nowadays, any enterprise that can survive under the impact of all kinds of technological changes is able to adapt to the times and make rapid response to environmental changes. In the digital and information age, is it enough to only understand the content of enterprise financial management? Of course not enough! If you don’t understand the five basic financial management systems of an enterprise, you are shouting to upgrade the enterprise’s financial management to realize digital management. Isn’t that just telling jokes? In this case, it is better to understand the five systems of enterprise financial management together with Xiaobian today.

What are the five systems of enterprise financial management? Know that you want to say a lot of concepts, such as: comprehensive budget management system, internal control management system, cost management system, financial information management system, accounting team management system. You’re right! This is really the five systems of financial management. However, we cannot look at these five systems in isolation, because they are the organic unity of building financial management.

Let’s briefly analyze the relationship between them: cost management system is the foundation, accounting team system is the key, comprehensive budget management system and financial information management system are the means, and internal control management system is the guarantee. Next one by one, why should we establish a comprehensive budget management system? The business objectives and development strategies of an enterprise are more related to the level of management, the strength of competitiveness and the quality of resource allocation. This is the core value of comprehensive budget management. As an enterprise, it doesn’t care whether it can do it?

What is the internal control management system? It is an important management means and mechanism of modern enterprises, and it is also a mechanism to realize self-regulation and restriction of production and operation activities of enterprises. The success or failure of an enterprise is often closely related to it. Industry insiders call it: success is also internal control failure is internal control! Cost management system is an eternal topic of financial management and an important weight for enterprises to maintain competitiveness. How can we watch it slip away!

Some financial experts compare information network to the nerve of business development, and it has become an important part of modern financial information management system. Once the nerve system reacts too slowly, the consequences will be unimaginable. What does modern enterprise information management rely on? Handwritten, manual report? What time is it! Too many enterprises have already realized the interconnection of enterprise management information through ERP software. For example, SAP ERP software, which accounts for a relatively high proportion of large and medium-sized enterprises in China, can not only support the flexible and efficient operation of enterprises from finance to all, but also provide reference for enterprises from finance to all data analysis and future innovation, which is very convenient. Of course, all of these are inseparable from people, which is the significance of establishing the financial team management system. How to manage? Talent advantage needs to be transformed into a series of competitive advantages, such as knowledge, technology and industry. Personnel training and management become the key. Today, many businesses rely on SAP’s intelligent financial solutions to anticipate and proactively respond to changing risk and compliance requirements through continuous monitoring and automation capabilities.

Digital thinking is reshaping the social form and corporate governance paradigm. Enterprises are also experiencing unprecedented transformation and upgrading pressure and power. The models of corporate finance and financial management are constantly emerging. Based on the organic operation of the five systems of enterprise financial management, it is the essence of enterprise financial management in the new era to continuously improve and give new content and significance to enterprise financial management. No matter the five systems, or the organization of financial activities, and the handling of financial relations, are not problems that can be solved in one or two sentences. To realize the excellent management of enterprise finance, we must be aware of the fact that we have to do it on paper! For a more comprehensive understanding, consult acloudear share – SAP gold partner.

This article "Five systems of enterprise financial management?" by AcloudEAR. We focus on business applications such as cloud ERP.

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