Disadvantages of Financial Shared Service Center, What is Financial Shared Service Center?

1. Financial personnel are separated from business and may be reduced to auxiliary positions. Finance personnel are no longer in direct contact with the company's sales staff, and are confronted with a bunch of cold numbers, which often do not accurately express the financial situation that the company is currently facing, and financial analysts cannot express the emotional situation of sales performance.

2. Rapidly increasing travel expenses. Generally, enterprises that establish financial sharing centers often face high travel expenses, while American and European companies that initially established financial sharing centers have a large number of low-cost airlines, and air tickets of one or two hundred dollars are very cheap compared to thousands of dollars of labor costs, so they often choose the financial sharing center model.

3. The bloated headquarters organ causes the organ style. Enterprises that set up financial sharing centers often only "share" and do not "serve".

4. Labor costs do not fall but rise. On the one hand, there is a huge income gap between the eastern and western regions of China.

5. The cost of information management and information system has been greatly improved. In order to meet the needs of the financial sharing center, it is necessary to assign a special person to be responsible for designing the information management mode of the financial sharing center and improving the management function of the information system, which is very expensive, and even causes a serious burden to the enterprise.

6. Huge tax risk and tax opportunity cost. On the one hand, financial personnel no longer have direct contact with the local tax bureau where subsidiaries and branches are located, and their sensitivity to tax risks is greatly reduced.

7. Employees of the financial shared service center may become a vulnerable group, and the turnover rate will be greatly increased. Whether or not the employees of the financial shared service center are reduced to a vulnerable group depends on the group's positioning of the financial shared service center.

The Financial Shared Service Center, or FSSC for short, is an accounting and reporting business management method that has emerged and become popular in recent years.

It is to transfer the accounting operations of entities with different countries and locations to an SSC (Shared Service Center) for bookkeeping and reporting, which has the advantage of ensuring the standardization and structure of accounting records and reports.

First, because there is no need to have an accountant in every company and office. System and labor costs are saved, but this operation is limited by the legal requirements of some countries.

Different from the ordinary enterprise financial management model, the advantages of the financial shared service center lie in the cost reduction, financial management level and efficiency improvement and the core competitiveness of the enterprise under the scale effect.

Financial Sharing Center.

The prospect is very good, and the establishment of a financial sharing center is the development trend of the accounting processing of group companies in the future.

Financial Shared Service Center.

It is an accounting and reporting business management method that has emerged and become popular in recent years. The advantage of bringing the accounting operations of entities in different countries and locations to a shared service center for bookkeeping and reporting is to ensure that accounting records and reports are standardized and structured.

First, since there is no need to have an accountant in every company and office of the group. System and labor costs are saved.

However, this practice is subject to the laws and regulations of some countries. The financial sharing center generally serves the branches and offices of manufacturing enterprises with high personnel quality. These branches, the office often only undertakes sales tasks, and does not have complex financial accounting needs.

The role of financial shared services is to help reduce operating costs.

Save labor costs and internal management costs; It is conducive to improving the quality of service.

and efficiency, by standardizing and streamlining complex work, the work efficiency and quality of the enterprise have been further improved; It is conducive to enhancing the competitiveness of enterprises and enhancing their economic potential; It is conducive to improving the level and efficiency of financial management, through the integration of cross-departmental business and the relevant training provided by the company, so that financial shared service personnel are familiar with relevant professional skills, so as to provide more professional services; It is conducive to providing commercial services to the outer Yuanming Void, so as to obtain more profits for enterprises.

The advantage of a financial shared service center is its scale effect.

The cost reduction, the improvement of financial management level and efficiency, and the promotion of the core competitiveness of the enterprise to rise three aspects, while ensuring the standardization and unification of the structure of accounting records and reports. It helps to improve the financial management ability of the enterprise and the integration of financial business, so that the enterprise can achieve the balance between the business unit and the financial unit, and also strengthens the personnel management of the enterprise. The financial shared service center is based on information technology and financial business process processing to optimize the organizational structure.

For the purpose of standardizing the process, improving the efficiency of the financial management process, reducing operating costs or creating enterprise value, the distributed management mode of professional production services for internal and external customers is provided.

The difference between a financial shared service center and a traditional finance department is fragmentation. The division of labor is becoming more and more refined, the complex work of the bench will be dismembered, and everyone's work will become part of the assembly line. The financial sharing model is an operation management mode that reengineers and standardizes the process of financial business that is scattered in various business units, has high repetition and is easy to standardize, and centrally disturbs the financial sharing service center for unified processing.

The traditional financial model is that each business unit handles its own financial work independently, and its main function is accounting and supervision, and it is independent of the business process. The internal structure of finance can be more focused on the strategic levelFinance is a core department of the enterprise, providing important support for the company's strategy. In the case of decentralized accounting, a large amount of manpower is spent on basic accounting and internal communication, and the decision analysis is also different.