Analysis Of Several Functions Of Chief Financial Officer

Whether the company's business decisions or investment decisions need a strong decision support system, that is, the accounting information system.

In decision making, the application of the concept of cost, such as opportunity cost, differential cost and so on, the analysis of the relationship between quantity and benefit, return on investment and internal rate of return, and the measurement and calculation of net cash flow and its present value, especially the introduction of the concept of EVA (economic value added) and so on, are all the professional advice advice provided by the chief financial officer before making decisions by the board of directors.

In addition, it can provide non-financial information that can be used for decision-making.

For example, the degree of the impact of investment projects on environmental protection and the related costs arising from the protection of the environment, the situation of market share after the implementation of the decision and the factors affecting it, the status quo of the technological innovation and management innovation before the decision making, the development trend after the decision making, and the trend of the relevant economic policies of the state.

These financial information and non-financial information are extremely useful for ensuring the scientificity of decision making.

In strengthening the operation and management of enterprises, the chief financial officer can lead the financial department to provide information on funds, costs, profits and other aspects to all levels of management team, find problems, propose measures, correct deviations, and solve problems.

Such as capital information, capital is the "blood" of the enterprise. What channel does the fund obtain? Is the capital structure reasonable or not? Is the appropriateness and distribution of funds properly? What is the amount and duration of debt and debt? What is the direction, structure and net flow of cash flow? Where are the ways to save money?

For example, cost information, in the market economy, the elements of competition are price, quality and service level first.

Price competition, in the final analysis, is the competition of cost level.

Therefore, in the enterprise, the cost of purchase and construction of fixed assets, the cost of material procurement, the cost of product production, the cost of goods sales and the cost of obtaining funds are all the information that the chief financial officer can provide and the highest management authority should pay great attention to.

In addition, the chief financial officer also wants to "think about the future with his heart". He can make a lot of valuable views on strategic decision management, capital management, new product selection and investment, and the development and management of human capital.

As a talented person, the position of the chief financial officer in an enterprise depends on the importance of his leadership and his own level.

As long as it is a growth and development enterprise, capital resources are always scarce.

Besides, from good financial management skills, there are also requirements for outward financing and fund scheduling and monitoring.

In the course of business operation, there are too many capital stocks. On the contrary, insufficient funds will also affect the normal operation of production and business activities.

Therefore, as the chief financial officer, the chief financial officer has the responsibility to lead the financial department to carry out scientific capital dispatching and monitoring.

For group companies, group headquarters is a contributor to equity capital of subsidiaries.

As a contributor, its basic right is to grasp the flow of funds in the whole group, and to understand the rights and interests of the company's capital and the right to know and regulate it.

Many enterprises in China fail in operation or fail in operation, mostly due to inadequate supervision of their subsidiaries' funds.

And strengthening capital monitoring and paying attention to fund management of subsidiary companies can make enterprises flourish and thrive.

Such as Panasonic Corp in Japan, General Company in the United States, SIEMENS in Germany and Haier group in China are all examples of fund management.

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The chief financial officer should sign and seal the financial statements together with the legal representative and the person in charge of the accounting department, and provide true, complete, correct and timely financial information to shareholders and other stakeholders. This is one of the chief tasks of the chief financial officer. At the same time, he should coordinate with the stakeholders in all aspects of information collection.

(1) relationship with shareholders.

Shareholders are the investors and owners of a company. According to this fundamental nature, the chief financial officer has the responsibility and obligation to disclose publicly the financial information of the company to them (real shareholders and potential shareholders) in a truthful, complete, correct and timely manner, "do not make false accounts", and report the company's operation and financial status, so that they can make accurate investment decisions.

In mind, we always keep in mind the interests of shareholders, and think about how to properly manage the capital provided by shareholders, and maximize the value of capital so as to give shareholders a satisfactory return.

(two) relationship with creditors.

There are various types of creditors, but the most important ones are the financial institutions that have loan relationships with the company and holders of the company's bonds.

According to this nature, the chief financial officer is responsible for disclosing the company's financial information publicly, correctly, and in a timely manner in a truthful, complete, correct and timely manner, that is, the company's long and short term solvency so that they can make the right credit decisions.

(three) relationship with other stakeholders.

Such relations include government financial and taxation departments, accounting firms and other social intermediary agencies, the China Securities Regulatory Commission and its dispatched offices.

The chief financial officer provides financial information to the finance and taxation department, such as the business process and its results, so that they can check the situation that they have paid taxes in accordance with the law and perform honorable tax obligations, and provide comprehensive financial information to the public intermediary organizations such as accounting firms, asset appraisal companies, etc., so that they can verify the legality, fairness and consistency of the company's operation and financial status, and correctly confirm the value of the assets of the company; provide financial information to the CSRC and its dispatched offices, so that they can effectively supervise and help the company's economic behavior in the perspective of the regulatory authorities and the position of small and medium-sized shareholders.

For these stakeholders, in addition to providing them with true, complete, correct and timely financial information, they should also acquire their understanding, support and assistance through the process of providing information and maintaining communication, coordination and coordination with them in various ways.

This is a very important aspect. The chief financial officer must devote great efforts and great attention to it.