Basic methods of financial management of chain enterprises

Because each chain store of chain enterprises has similar characteristics in accounting, capital inflow and outflow, fixed assets or decoration investment, inventory and management, personnel recruitment and management, etc., it requires us to adopt roughly consistent management policies and methods for each chain store. Then, the following is the basic way for me to share the financial management of chain enterprises. Welcome to read and browse.

First, the financial management of chain enterprises

Chain enterprises have many characteristics, such as wide coverage, replicability, large investment in general fixed assets (or decoration), large inventory, providing services in addition to selling products, low gross profit margin (such enterprises generally rely on scale advantages), difficult to raise funds, relatively high financial costs, and wide management range. For example, we usually see similar enterprises such as supermarket chains, clothing, restaurants, cinemas and hotels. This requires us to adopt different strategies in corporate form, accounting policy formulation, financial management and tax planning according to these characteristics. How do excellent enterprises do it? Here is a summary based on our experience.

general idea: centralized management

because the chain stores of chain enterprises have similar characteristics in accounting, capital inflow and outflow, fixed assets or decoration investment, inventory and management, personnel recruitment and management, etc., this requires us to adopt roughly the same management policies and methods for each chain store. Due to the characteristics of consistency, it provides us with convenience and requirements for unified management of chain stores, and also improves management efficiency and saves management costs. In which aspects can centralized management be carried out? I think we can start from these aspects: accounting, fund control, purchasing, sales policy formulation, brand promotion, decoration standard formulation and management, personnel management, risk control, technical standard formulation, operation process setting, etc.

second, the form and setting of the company's organizational structure

it is best for chain enterprises to adopt the legal form of direct control of the head office company and the matrix management mode of sub-management modules. This is the organizational guarantee of centralized management.

The matrix structure is conducive to maintaining the professionalism and directness of management, thus improving the efficiency and quality of management and reducing the negative impact caused by personnel flow; However, it is not conducive to a single chain store to play its role as a business entity, which requires an assessment and incentive mechanism for single stores. The structure of the head office company is conducive to the implementation of the matrix management structure, which is conducive to reducing the tax cost from the tax aspect. For example, the profit of a profit-making store can be offset with the profit of a loss-making store, reducing the taxable income, thus reducing the cost of income. In order to ensure the smooth implementation of the general branches and matrix management structure, a strong information management and communication mechanism should be established from the communication mechanism to ensure smooth communication from top to bottom.

formulation of accounting policies

it is needless to emphasize that the general branch must adopt consistent accounting policies. The characteristics of chain enterprises determine that the following special accounting policies should be paid special attention to.

determination of fixed assets classification and depreciation and amortization period. The important costs and expenses of chain enterprises during depreciation and amortization have a great impact on the profits of the current period. Therefore, when they are put into use, they should be accounted for in detail as far as possible according to their expected useful life, and they should not be accounted for in one time. For example, in hotels, fire protection works, air-conditioning works, bathroom decoration, room decoration, furniture, etc., the fixed time for depreciation or amortization can only make the accounting inaccurate.

determination of interest capitalization. Chain expansion is limited by capital, which requires a lot of external financing, which produces great financial costs. It is necessary to allocate and account for the financing cost of a single store, and capitalize as much as possible if it meets the capitalization requirements. At least the internal assessment needs to be like this. This can change the situation that many chain companies make money without making profits as much as possible.

inventory management. It is particularly important to reduce inventory and improve inventory turnover rate in chain enterprises, although it is inconspicuous inventory and low-value consumables in a single store, it is very big in the whole company. Unfortunately, many enterprises don't pay attention to it, and even have no inventory logistics system. How to implement effective monitoring?

allocation of total branch management expenses. In the case that the head office is an investment company controlled by the company, or the head office can't make ends meet, it is necessary for the head office to allocate its comprehensive management expenses to its branches and subsidiaries reasonably, especially in the case of subsidiaries. Even in the case of all branches, the management expenses of the head office should be shared for the needs of fair internal assessment.

financial control

a highly centralized financial control system is an effective guarantee for the head office and institutionalized management, and it is also the most effective way according to its own characteristics. In addition to formulating a unified budget system, there are several points that must be done.

centralized budget management. Making a comprehensive and dynamic budget is an effective management means to realize the rapid development of cross-regional industries, reduce communication costs and provide institutional guarantee for full authorization.

centralized fund management. Separate revenue and expenditure, and the funds above the quota are directly transferred to the headquarters account, which is convenient for centralized funds to make overall arrangements for the use of funds or value-added management; It is also convenient to unify financing arrangements.

centralized expense approval. The funds in the budget of the headquarters and storefront are examined and approved according to the matrix management scope and budget authority, and the financial department of the headquarters supervises and verifies, while the extra-budgetary funds are uniformly examined and approved by the financial department of the headquarters. It is very important to emphasize the budget and approval of fixed assets and decoration. The control of standard cost can make the cash expenditure in the current period small and the amortization pressure in the future small.

centralized selection, training, assignment and rotation of financial personnel.

centralized financial analysis. The financial analysis of chain stores is very important, and there must be a special post to do this work. The content of the analysis is not only the financial indicators, but also the business indicators and the analysis of daily business behavior as far as possible, so as to provide warnings, sum up experiences and lessons for adjusting the budget and finding problems in time. In addition, the feasibility analysis of investment is particularly important.

financial informatization

centralized financial management is inseparable from financial informatization, business informatization and office automation, and the seamless connection among them can ensure the transmission and enjoyment of information. ;