Lockdown & Free a bit? New FY- 1st April? This combination is boon for finance department changes in place

First of All, Wish you a safe stay at home during corona & definitely we can beat it with the right paradigm & positive attitude.

Do you as CEOs, CFOs & CXOs are getting desired periodic reporting & best practices from your finance department, If the answer is no, then this article is very important for you to study once.

Now Let's think if we as CEO, CFO & Key decision-makers related finance function can make ourselves & our Finance department ready to bounce back once this corona lockdown will be over? As we all know that everything will always bounce back just like Sensex.

Let's understand how we can make our finance department more effective and involve all the finance team in this lockdown situation in a more effective way!

Here is the eight steps process to have an effective finance system in place.

Step 1

BMI Health Check-up for your business: Our process starts with understanding the current health of your business. Here we come to know the answers such as!

• Do you know which part of Business is doing Extremely well/Worse?
• The company is profitable but the cash-flow situation is not in control?
• What is the efficiency of your finance department?
• What are our Growth strategies?

In Nutshell, That's like your blood test, we'll know what activities need to be taken for improvement in the overall organization ecosystem.

Step 2

Brain Storming with Existing team & understanding finance processes in place: Our approach starts with Planning: Understand Background, Prepare Plan, Information Gathering: Interviews/ Questionnaires, Management Discussion, Characterisation of Entities, Review of Agreements, Reporting/Outcome: No. of SOPs, New chart of account and reporting formats.

Step 3

Reporting Planning: This phase is very important in Step 2 before making any new SOPs & Processes so that our path is very very clear. We discuss all the periodic reporting that are required for ease in understanding & a watch on key parameters for your industry. For Example in a Food chain, food cost % is something that needs to be monitored on a regular basis. Or For a Manufacturing unit, RM Cost % is an important element for any decision making. We prepare a robust Monthly MIS & Cash Flow reporting so that we can consider all important parameters for your entity. Then Next step goes into SOPs as per this Outcome.

Step 4

Detailed SOPs Preparations: Based on the information collected, prepare a list of recurring activity in F&A and purpose of SOP to carry out the operation smoothly, Prepare the SOP in word file in bullet point, training to concerned employees. This includes our accounting software study based on our future plans. We can suggest you shift from regular software such as Tally to any other robust accounting system such as SAP, Dynamics depending upon your thought process.

Step 5

SOPs & System Implementation in Finance & Accounting: This is the step where most of the organizations will fail to implement the Systems & Processes & change the team mindset for changes way of working. Our Expert Team members understand the thought process of finance people & always plan effective & engaging activities to conclude this activity in a phased manner.

Step 6

Effective Budget Planning: Effective budget planning is not about just preparing an excel & then at the month-end just submit the variance. We have a dedicated expert team in budget planning so that we have a less than 1% variance in budget vs. actuals in 3-6 months time. Budgets are very important for the organization's growth & to take key decisions for the company's success.

Step 7

Expansion Strategies: Do we have clear expansion strategies in place? That can vary from industry to industry. Let's have a clear target for your Sales Team and eventually for the decision-makers. For Example, If we are a retail outlet company, do we have studied our growth path in terms of franchise, Kiosk, COCO, FOFO, FOCO, and others. Similarly, for an E-commerce company, fund planning is very important to have an expansion strategy in place. We have to understand here the obstacle & key growth drivers so that we can follow them.

Step 8

Regular Monitoring: We monitor all the processes on a regular basis to ensure that each & every aspect related to the finance department which is required for that growth & expansion strategy implementation is in place. This will include all the reporting & day to day compliance monitoring so that we get a single report every month which is talking about each & every aspect of your business. You need to review it for half a day & you can have department meetings for the key indicators & done.

These 8 steps process if we follow, then your finance department can work as a rocket and will support your overall business growth.

No Matters, you are into Healthcare Industry, or Pharmaceuticals, Food & Beverages, Automotive, Engineering, Process Manufacturing, E-Commerce, Media Industry or technology or any other Service Industry, we can help your entire finance ecosystem planning.

We are currently supporting companies ranging from turnover 5-250 crores for now. It's not about the size but about the management perspective & attitude towards business growth. Our Teams are working at a 100% capacity from home to give you a clear path ahead post this lockdown situation. Let's have a Free consultation for your business now at [email protected] or you can simply call or Skype us at +91 9310165114. Trust me this will worth it.