The functions and ways of thinking of the chief financial officer

1 How to understand the functions and work categories of the chief financial director

The most important resources of an enterprise are human resources and financial resources. Enterprises are composed of a series of contracts. The provider of financial resources (shareholders and creditors) transforms the original financial resources -monetary funds into a series of human resources. Provide value to create a social organization that creates value for shareholders through value -added services.

Therefore, the functions of the financial director are to assist shareholders to manage the financial resources of the enterprise in order to maximize the value of monetary capital.

Financial resources are resources from a currency form to a series of physical and non -real states and eventually transformed into currency forms (each element subject and off -table elements). Of course, the most important of which is monetary funds, because the flow of funds is like a person's blood for a business. Many companies do not fall in the company's own asset pattern or value form, but they die in blind expansion. And in the face of changes in consumer habits, there is not enough capital flow to transform in time.

Then we need to use some tools to manage financial resources. I think the two most important tools: accounting information statistics system and management report system (note that it is management reports rather than report management)

Accounting information statistics system

Accounting information statistics are the basic functions of finance. According to certain compulsory rules and industry practices, financial resources are counted on the form of various processes nodes of the enterprise, thereby forming three tables and one note we often use. The accounting language is first of all a business language. According to the language of this system, we can compare business results and asset status analysis of corporate history (vertical) and industry competitors, upstream and downstream industrial chains (horizontal). As a result, the conversion rate of financial resources (Roi).

Management report system

Note that I understand the management report rather than report management. I think the report management is to first optimize the report (such as the surplus management of the surplus management and the needs of the regulators of the supervisor or the maintenance of the relationship between the regulators). Management reports means that before the statement is generated, our allocation of financial resources, business plans and business arrangements, management and evaluation of strategic processes, in order to achieve the business effect we expect according to the reports generated by the accounting system. It contains the following 2 modules:

Budget and evaluation system

Budget is the best tool for allocation of financial resources. The budget is not to say that a goal is set at the beginning of the year. It must be implemented according to the budget according to the target. It will be implemented according to the budget. If you have budget, you will spend money. You ca n’t spend money without budgets. First of all, budget management should be a rolling budget concept. Under the shortage of life cycles and changes in our business environment and product services, an industry may change in half a year. Therefore, the competitive cycle of business is getting faster and faster, especially in the TMT field in the TMT field, in the concept of the month, not the concept of the year. It is to comprehensively consider what aspects of the investment and process control, and continuously optimize the integration of resource to evaluate, and ultimately achieve the purpose of commercial arrangements, rather than blindly thinking that the budget is how much it costs. The competition is ever -changing, and we must carry out the concept of zero -based budget and rolling budget.

Capital budget: Where does financial resources come from? Capital structure and capital costs are issues that managers must consider. How to obtain low capital costs and optimized capital structures correspond to different commercial projects. Since the current financial industry is not fully marketized, Therefore, the primary function of many financial director of private enterprises is how to obtain funds (bank loans and A -share listing), so the current market judgment of the value of a financial director is more of the ability to make money. This is a specific. This is a specific. During the period, the specific function given to the post of chief financial officer. However, after I judge that after the financial markets such as interest rate marketization are fully opened, the more important thinking of the financial director is not the issue of money, but to see the relationship between my capital structure, capital costs and projects. For example, I have a real estate project with a group, so for this project with a large leverage and a higher profit margin than debt costs, it must be configured with debt capital. Because your pre -interest tax rate is not enough debt cost.

Business budget: I understand the business budget. I understand the business project that has been formed. To plan financial resources according to the business process, the investment in human resources, the investment in asset resources, etc. It is necessary to formulate long -term and short -term financial resources allocation after deep understanding of the state of competition and its own capabilities, including credit policies, inventory transfer and asset reset, currency form and non -monetary form resources.

Innovation project budget: Enterprises either die in the failure of innovation or die in the revolution of innovation, so innovation is the DNA of the long -term enterprise, and innovation also means risks and failures. Buying and selling, the minimum cost reaches the establishment of commercial attempts and competition barriers is an opportunity that any company wants to have. Just like the Ministry of Industry and Information Technology arranges some funds every year for technical reform funds. A company should arrange a separate arrangement in the annual profits and capital arrangements. Innovative projects, it is necessary to make a separate budget, supervision and evaluation of this part of financial resources. Strategic verification and risk control: Whether it is a business budget or an innovative project budget, the chief financial officer should establish a set of financial models for the strategic goals of the industry and enterprises. O2O store, the first half of the year is estimated to be the construction stage, then how much financial resources I match during the construction stage, the second, the third half of the third half of the year, how much business benefits, how to allocate resources and evaluate resources, you need to use the financial model to verify the verification Below, and observing whether the effect of achievement and the expected verification model in each subsequent half a year may not achieve the expected benefits for the third and half months, then you must evaluate whether it is a strategy problem or a problem of execution. If it is it, if it is The problem of strategy must be considered to reduce the loss of project investment to the minimum level. Through continuous verification and testing, timely warning and evaluation, the maximum transformation of financial resources in strategic projects.

Internal Control

Internal control is a set of institutional arrangements that ensure the financial resources of the enterprise in the internal scientific and efficient operation of the enterprise, and to ensure that the financial resources are finally formed by a powerful and accurate reporting system. It can be referred to the various guidelines of the Ministry of Finance on the internal control. It should be combined The industry's industry is refined and adjusted. Among them, the control of cash security is particularly important. In addition to the operation arrangements of daily accounts, there are also predictions on the flow of funds and the management of surplus funds, as well as credit policies, suppliers, suppliers Purchase and tangible assets' storage and operation.

2 Thinking model of director of financial director: financial thinking and business thinking

Origin from a recruitment: Recruitment of financial managers, I interviewed a girl who was engaged in software outsourcing companies. During the interview, I asked about its cost accounting process, income settlement process and the company's organizational structure and the operation structure of the financial department. Understand the business process and financial accounting process, but the feedback given me after the interview after the interview was: the applicants did not understand their company business, and they couldn't say that the company's business process was not clear.

Later I want to exist two points: 1. The boss uses business thinking to ask, and the candidate either cannot understand the logic of business thinking, or to answer this question in financial thinking and in financial language, which leads to the deviation of communication bias. Essence 2. The boss asked the professional question, such as how your market channels do marketing and how to view competitive strategies. For a financial manager, he may not have penetrated that level. What is the proportion of sales? There are no marketing methods for the specific competition, what are the marketing tools and potential competition.

So as a financial manager, when your superior is a non -financial leader or you need to communicate in depth with the business department, you should transform the problem into business thinking and use simple business language to describe the problem and communication solution. Therefore, the financial departments and business departments of many enterprises have a lot of differences, and a manager of an outstanding financial knowledge is a good communication and understanding if his direct boss is a financial profession, but in the face of non -financial leadership At the time, the gap between the two sides is relatively large. This requires our financial managers to think about how to use effective communication tools, how to simplify and transform financial language on different occasions to solve the problem.

3 The management realm of the director of the financial director: the more the rules, the more humanities

In the Chinese market, especially the bosses of private enterprises who want to be bigger and do not want to fulfill their obligations according to law. These are the bottom lines of enterprises and financial people.

In the business operation of specific enterprises, business departments and bosses often have different understanding and finances (often rhetoric is that other companies do so feasible, your financial level is limited), so finance people Under the premise of grasping the bottom line rules, how to distinguish sin and non -crime, and grasp the large and small, must communicate in advance with the business department, and plan how the business is manifested and handled on the book before the business occurs. What is the influence and what contracts and bills are required for matters. To communicate and grasp the rules in advance, as long as the risk prompts and control are in place, they have died. This is what I understand to follow the rules. The humanistic affairs require humanities, the more rules, the more humanities.

Source: CFO communication circle, financial management research

- END -