Development of Methodology for Financial, Management, and Budget Reporting Analysis

Project Goal

Creation of analytical tools and methods for financial document indicators to identify essential links and characteristics necessary for management decision-making.

Project Tasks:

• Reduce the inevitable uncertainty present in any management decision-making process;
• Create a solid and systematic foundation for the rational application of business intuition;
• Forecast future financial conditions and results;
• Identify management issues in the company’s activities;
• Evaluate the performance of both department heads and company management.

Project Stages:

• Company Familiarization:
  • Strategy;
  • Organizational structure;
  • Business processes.
• Reporting Familiarization:
  • Financial reporting;
  • Budget reporting;
  • Management reporting.
• Development of Reporting Analysis Methodology:
  • Horizontal analysis;
  • Vertical analysis;
  • System of financial ratios:
    • Operational analysis;
    • Operating cost analysis;
    • Asset management;
    • Liquidity indicators;
    • Profitability indicators;
    • Capital structure indicators;
    • Debt service indicators;
    • Market indicators.
  • Regulation of analysis processes.
• Compilation of the “Reporting Analysis Methodology” document.

Execution Methodology:

• Drafting an initial list of requested documents from the Customer and analyzing them;
• Compiling a list of questions for the Customer’s respondents and analyzing response results;
• Analyzing the received information;
• Coordinating and approving the developed documents regarding the reporting analysis methodology.

Project Result:

• A formalized reporting analysis methodology corresponding to the goals and objectives of the project;
• A structured list of works and investment volumes for automating the reporting analysis methodology.

Value for the Customer:

• Reduction of uncertainty when making management decisions;
• Increased predictability of future financial conditions and financial results of the company;
• Effective control over the company’s activities;
• Constructive nature of management decisions made;
• Control and evaluation of management personnel performance;
• Enhancement of the company’s investment attractiveness.