This report from ACCA
is based on a survey conducted in late 2012 among corporate Financial leaders in China and Hong Kong about using Finance Shared Services (FSS). The survey result shows that four out of ten respondents have started using some sort FSS, mostly in highly standardized and transactional processes such as payroll, accounts receivable and accounts payable.
The key reasons to set up FSS are to reduce finance operation cost and improve business performance. Ninety-one percent of the respondents chose to set up FSSCs in cities with matured shared service centers or close to their corporate offices to ensure sufficient recruitment foundation.
Key findings regarding implementation of FSS by Chinese enterprises:
- Scope of FSS remains limited to transactional processes
- The primary business goals of FSS implementation are standardization and capability enhancement
- Preference in setting up FSSC in developed regions
- FSS is effective in process standardization and service quality enhancement
- Using financial performance dashboard to monitor FSS, in order to facilitate continuous improvement in financial performance
- Service quality management is the most priority challenge in FSS implementation
- Finance leaders regard formation of FSS team, talent transformation, recruitment and development as the primary concerns
- Shared services facilitate the realization of the finance transformation goals