Transforming Finance: A Journey from Local to Global Standards

Embarking on a journey to revamp the financial practices of a newly acquired multinational corporation (MNC) with entrenched local methods presents a unique set of challenges and opportunities. When I joined this MNC, my mandate was clear: elevate our local financial operations to meet global standards. Here’s how I tackled this transformative journey.

Embracing Efficiency and Organization

The first step was to target the "low hanging fruits" to quickly establish order and efficiency. We abolished the clutter of physical documents by partnering with a third-party filing vendor, ensuring all documents were properly stored and easily accessible. This not only streamlined operations but also secured our financial records.

Moving Away from Cash

In a bold move to enhance transparency and control, we minimized petty cash to a mere 10% of its original volume, insisting on bank transfers for all payments. This decision, albeit unpopular with some vendors, was crucial in mitigating risks associated with cash transactions and paved the way for a more secure and traceable payment process.

Implementing Robust Financial Systems

The discovery that our trial balance (TB) did not reconcile was a red flag indicating deeper issues within our financial system. Such discrepancies underscore the critical need for reliable financial reporting. I advocated for the swift implementation of Oracle's financial system, a testament to our commitment to accuracy and integrity in our financial operations.

Hands-on Reconciliation and Team Restructuring

Taking matters into my own hands, I conducted bank reconciliations, uncovering numerous unreconciled items. This hands-on approach not only helped identify gaps but also underscored the importance of meticulous financial oversight. Additionally, reorganizing the finance team led to a significant reduction in staff while achieving 20% savings in full-time equivalents (FTEs), highlighting the effectiveness of our new streamlined approach.

Inaugurating the First Financial Audit and Dashboard

A milestone in our journey was engaging with a reputable auditing firm to conduct the first-ever financial audit, marking a significant leap towards transparency and compliance. Furthermore, the development of the inaugural sales and financial dashboard, albeit in Excel, provided critical visibility into our operations, empowering decision-making with actionable insights.

This transformational journey from local to global financial practices not only enhanced our operational efficiency but also firmly established our financial integrity and transparency. Through targeted actions and strategic decisions, we successfully navigated the challenges, setting a new standard for excellence within the MNC.

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