Transformation of the financial function for the largest metal supplier and logistics operator with 17 subsidiaries

Project objective: Improving the financial management system, increasing efficiency and control in the company and its subsidiaries.

Completed works:

  • Accounting:

  • Developing recommendations for aligning accounting approaches by Russian Accounting Standards with IFRS standards
  • Developing a unified account chart, a unified accounting policy for accounting purposes, an account chart for consolidated financial statements, a transformation correction log, a consolidation correction log, a check report library, a library with IFRS consolidated financial reporting forms with a breakdown, a library of information disclosure forms for the management based on IFRS consolidated financial reports (MD&A), methodology for forming IFRS consolidated financial reports
  • Budgeting:

  • Determining process structure (annual budgeting, forecasting, preparation of actual management reports, budget reconsideration)
  • Describing an approach to forming the financial structure
  • Describing a cost allocation approach by centralized accounting departments and Cost Centers
  • Developing a list of budgets and management reporting forms
  • Developing a budget classifier (indicators for planning purposes) based on the account consolidation plan (for the purposes of forming IFRS reports)
  • Developing a budget form library as per the budget structure defined in the Planning and management accounting policy
  • Describing the methodology for forming each budget (calculation algorithms) including the required reclassifications, allocations and distributions
  • Management accounting:

  • Determining all the necessary analytic profiles (reference materials), sources for their population, persons responsible for their maintenance and support, rules for gathering and uploading actual data from the system’s accounting module into the planning module
  • Developing a library of actual management reporting forms as per the structure defined in the Planning and management accounting policy
  • Describing the methodology for forming each report (calculation algorithms) including the required reclassifications, allocations and distributions
  • Determining and describing the main differences (accounts, analytics, etc.) between the methodology of management reporting and the target methodology of accounting and the company reports (to be formed as part of the Project)
  • Forming instructions for comparing and checking the compliance of correspondence between the information contained in accounting and management reports
  • Treasury:

  • Describing step sequence of process participants based on contract examination procedures in terms of currency control, opening transaction certificates, forming and submitting currency control form and information on FCF to banks
  • Determining approaches to checking timely submittal of currency control documents with the purpose of meeting deadlines as per the currency legislation requirements
  • Describing step sequences of process participants in 1С target system aimed at creating Payment Orders, their approval, forming and approving the List of Payments, effecting payments, obtaining and processing bank statements
  • Determining a list and requirement to investment indicators applied during project evaluation along with main provisions for monitoring and controlling investment activities of the company
  • Developing process flow diagrams including incoming and outgoing information for each step of the process
  • Determining responsible participants for each step
  • Determining main risks arising during investment project implementation
  • Finance function:

  • Developing an organization structure for the Financial Directorate
  • Describing goals, tasks and functions of the Finance Directorate, rights and obligations (providing details to structural units, i.e., administrations, services, departments)
  • Determining the procedure for interacting with other company units and third-party organizations (if available)
  • Describing the activity efficiency management process in the context of main company units
  • Developing process flow diagrams including step-by-step description, sequence and deadlines, incoming and outgoing information for each step of the process
  • Determining roles and responsibilities

Work results:

  • Completing organizational changes, describing financial processes
  • Approving an activity efficiency management system
  • Forming a methodological procedures for budgeting, accounting and management accounting and reporting, treasury based on best practices

Measurable value:

Increasing transparency and reliability of financial information for decision making; optimization of processes and costs for the finance function, increasing performance efficiency.

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