Finance
The financial processes within a company results in financial information that is used both internally and externally. The processes are subject to rules and regulations which can be changed by the authorities.
The financial processes must be handled with care so that the board, the shareholders, the banks and the authorities receive sufficient information, and are well informed about the company’s financial status.
Output from financial processes
A correct picture of the company’s economy and value-added statements for the given fiscal period.
A solid foundation for historic and future analysis of the company, useful to both internal and external stake holders.
The most important function within a company is its core activity. Next to that you will find the financial management. All companies, no matter size and industry, are dependent on a healthy financial management.
The finance department has the daily responsibility to follow up on the financial transactions with customers and suppliers. Monitoring and reconciliation of the general ledger postings are other important, daily tasks. Account receivables and account payables aging reports will form the basis for financial statements, reports and analysis that help the board make appropriate short- and long-term decisions.
Tasks involved in this process
Base registers - Set-up and maintenance of the Chart of accounts, account defaults, and account groups are examples of the tasks involved in this process.
General ledger - The General ledger (GL) is used to monitor the company’s financial status. This is where you handle the fiscal period closures, VAT calculation and reconciliation, and where you keep track of the stock value. Deviations and errors are detected through the reconciliation of the GL.
Receivables - Handling of payments from the customers, reminders, customer balances and due amounts are examples of the tasks involved in this process.
Payables - Handling of payments to the suppliers, due amount balances, and future deliveries are examples of the tasks involved in this process.
Liquidity - Handling of incoming and outgoing payments from the bank is central in the liquidity management. There are solutions for both manual and electronically handling of payments. Setup, maintenance, and monitoring the bank accounts are included in this process.
Assets - Registration of investments is a part of this process. The fixed asset register provides a detailed overview of the monthly depreciation. There are tools for life cycle management of every single asset.
Budget - Budgeting is essential for analyzing numbers and planning the future by comparison of historic and real values. It is possible to group the general ledger accounts to make the comparison easier.