Cfo System Research

CFO(Chief Financial Officer) is one of the most valuable management jobs on the senior level in the enterprise. He is the leader in the value-creating course for shareholders, a decision partner of CEO.Chinese enterprises lack not traditional accountants, but CFO -- the professional who puts the ideal of the supreme policymaker of enterprise into practice. To perfect the Corporation Governance, it is necessary to speed up the development of CFO system in China.This paper goes on the study on the basis of the background.In chapter one, the study background has been briefly introduced. In the year of 2002,"China Institute of General Accountant" renamed itself as "China Association of Chief Financial Officer",which proved that it is a kind of trend that the Controller is transformed into CFO. While, the understanding to CFO is far insufficient, have already delayed the development of CFO. Then,I have introduced the historical evolution of the most representative American CFO,and compared with the situations of China. Through comment on the present achievement in research, I find that existing research lacks systematicness. So it has both important theory meaning and urgent realistic meaning to draw lessons from ripe CFO system abroad and study CFO system in China.The chapter two has compared CFO system and other systems.At section one, two large-scale enterprises have been compared: Goldfield(Group) Ltd.,Co. and China National Electronics Import & Export Shenzhen Company. By contrast of their structure charts of organization, financial administration workflow and efficiency, treatment methods of financial public relations I draw the conclusion: It is necessary and feasible to set up CFO. At section two, the connection and difference between CFO and General Accoutant are explained in detail. General Accoutant is a result of era of planned economy, and does not adapt to the current situation , so should be replaced progressively by CFO. At section three, the relations of CFO and financial Controller has been analysed omni-directionally. In China, financial Controllers are often appointed by the government to the state-owned enterprises . They exercise authority to supervise mainly. The function of CFO is mainly to participate in strategic management. It is very meaningful to understand their relation: We can draw lessons from CFO system , and reform financial Controller's system. The last section of this chapter has compared the CFO systems in our country and others,then found that the functions of CFO in China is still in relatively low-level. Chapter three has designed the Chinese CFO's system.In the first part,I have analysed the reason why our enterprises lack CFO at present.In the second part of this chapter, The concrete frame of CFO system with the distinct Chinese characteristics has been proposed.It includes six items of content: production, localization, duty, work , quality requirement, environment related to build. The main views are: only large-scale companies with relatively perfect administration structure need set up CFO; The current situations of enterprises determine that there are three ways to realize CFO system; In order to ensure CFO to really play the strategic administrator's function , should let CFO enter the board of directors , and let him hold share ; Chinese CFO should be regarded as the chief leader in affairs of financial public relations, build financial culture and be responsible for implementation; CFO and CEO should set up cooperation on the basis of function dividing, and the contradiction of the two can be coordinated through the board of directors.In the last chapter,a brief summary to the full test has done on the basis of the preceding analysis.Directing against the reality of the CFO system in China,several pieces of suggestions are given.