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CFO ServicesAdressing the challenges of today’s Finance Organisations
Content
5 Finance Organisation & Strategy 6 Last Mile of Finance 7 Transactional Finance 8 Cost Management 9 Business and Financial Planning 10 Budgeting and Performance Management 12 Treasury Management
CFO Services Adressing the challenges of today’s Finance Organisations 3
Introduction
It is tough being a CFO these days. You are facing complex decisions on many fronts, and knowing exactly how to proceed at any given time is harder than it looks. A smart move for one business could be crazy for another – and understanding which way to turn requires experience and insight.
The role of today's CFO is more complex than ever. CFO’s are managing people, systems and technology infrastructure - all under intense regulatory scrutiny. They are driving or adapting to strategic shifts in their companies' business models. As always, they are ensuring that the finance organisation performs its core accounting and reporting duties effectively and efficiently. As their role continues to expand and evolve, it is no wonder many financial leaders are frustrated by ever-increasing demands on their time and resources.
We provide a comprehensive suite of CFO services to support the CFO in addressing the challenges of today’s Finance Organisations. We assist the CFO in transforming finance from a 'supporting' to a 'business leading' function of an organisation; reducing its cost base while improving efficiency, the quality of information, and subsequent decision making.
Talk to us! We are there to support your ambitions!
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Some things are fundamental to a well-run business, and solid Finance Operations is one of them. Getting it right means you’ll have more time to focus on making better business decisions. Getting it wrong means you’re in for a world of trouble.
CFO Services Adressing the challenges of today’s Finance Organisations 5
How we can help?Our solutions are designed to join CFO’s on their journey to transform their Finance Organisation. We can offer you:•Aone-day,Finance focused Workshop, to define the
long-term Finance Vision and Strategy;•AFinance Maturity Assessment or Benchmarking
study to assess the Finance Organisation performance and capabilities compared to your peers;
•AssistancewithdetermininganappropriateFinanceOperating Model;
•OurprovenFinanceBusinessPartneringMethodologyto transform your Finance Organisation into a value addingBusinessPartner.
•Anumberofproventoolsandmethodologiesessential in translating the strategic Finance Vision to an actionable Transformation Roadmap.
Bottom-line benefits•AFinance Vision & Strategy to support the
execution of the organisation’s Corporate strategy;•Aqualitativestudywhichwillshowyouwhereto
focus in order to bring your Finance Organisation in synch with best practices;
•AmoreeffectiveandpowerfulFinance Operating Model;
•AFinanceOrganisationbeinganeffectiveBusiness Partner that can lead to better and faster business decision-making.
•Asolidandrealistic business case and roadmap leading the Finance Transformation to success;
The four faces of the CFO
Finance Organisation & Strategy
•AreyounewinyourroleasCFOanddoyouwanttoevaluatethecurrentFinanceVisionandStrategy?
•DoyouwanttoknowhowmatureyourFinanceOrganisation is compared to your peers?
•AreyoustrugglingtoalignyourFinanceOperatingModelwiththevision onfinance,businessgrowthandstrategy?
•AreyoulookingtoincreasetheservicelevelyourFinanceOrganisationdeliverstoitsstakeholders?
•Areyouexperiencingdifficultieswithtransforming your Finance Organisation into a valueaddingBusinessPartner?
•AreyounotsurehowtotranslateyourVisionon Finance into an actionable roadmap?
Strategic
Perfo
rman
ceExecution
EfficiencyCont
rol
Catalyst
Operator
FinanceFunction
Steward
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How we can help?Our services are designed to help CFO’s in their efforts to:•CreateBalance Sheet integrity and reduce the risk of
misstatements;•Optimize the closing process by assessing the record to
report process, whilst benchmarking with best practice solutions and deriving a closing process that combines effectiveness with efficiency
•Selectandimplementabest practice tool (e.g. account reconciliation, disclosure management, consolidation, etc) supporting the business needs based on proven technical, financial and operational experience;
•Assesriskofmisstatementsthroughsystem assurance, processreviewandqualityassurance.
•Findtemporarysupportduringthecloseandconsolidation process.
Bottom-line benefits•Increasedstaffefficiencyleadingtoenhancedquality •Resourcetimealignedwithhighvalueactivities•Reducedmanualprocessesandincreasedlevelsof
automation•Reducedprocessingtimeaswellasauditcostby
maintaining availability of supporting documentation•Increasedoperationalefficiencies •Automatedprocesseswithintegration of multiple
systems•Enhancedmanagementreportinganddecision making •Automatedinternal controls reducing the need for testing•Enhancedriskmanagementcapabilities•Betterabilitytocomplywithlawsandregulations•Increasedoverallaccountabilityandtransparency
Last Mile of Finance
Our experience indicates that companies need to adopt a holistic approach to the last mile of finance and avoid the ‘white spaces’ in the Record to Report process.
Last Mile of Finance
•Doyouwanttofastenyourclosingprocessbyreducingtime-consumingandlabor-intensiveactivitiesinadecentralizedandnon-integratedsystem landscape?
•Areyoustrugglingwithdatainconsistenciesandmammothdatavolumesandseektomovetoafluent and risk-based closing process?
•Doyouwanttonavigatearoundthedangerousrocksinfinancebyavoidingerrorpronemanualprocesses?
•Areyoulosingyourvisibilityinajungleofspreadsheets?
•Wouldyouratherrelyonfinancialandoperationaldatageneratedviaanautomatedprocess?
Report
Reconciliations adjustments • Allocations • Re-Class Entries • GAAP/IFRS Top side entries
Consolidated • Income statement • Balance sheet • Cash flows
Management discussion and analysis Footnotes Disclosures
“Last Mile” of Finance
Preliminary trial balance/ consolidation (Sub-ledger Close)
Management and statutory reporting
Close and reporting governance
Validation
• Fluctuation/ variances
• Forecasting • Continuous
monitoring
Analytics
Reporting
Policies, procedures, grants of authority and controls
Close and consolidate Process transactions
Consolidations
Intercompany eliminations
Currency valuation
Accruals and prepaids
Allocations
Minority interest and joint ventures
Chart of accounts mapping Tax and regulatory reporting
SEC filings monthly quarterly XBRL
Subledgers (e.g., procure to pay)
Account Reconciliation
Disclosure Management
AR
AR
AR
DM
DM
CFO Services Adressing the challenges of today’s Finance Organisations 7
How we can help?Our services are designed to help CFO’s in their efforts to:•Designandimplementprocessesandtechnologyto
optimize the processing of general ledger and sub ledger transactions on an ongoing basis;
•Designprocessestooptimizeaccountingtransactionprocessing in the areas of internal control, access and IT controls and segregation of duties;
•Assessthecurrentstateofthefinanceprocessesandsystems through benchmarking and best practice comparison;
•Automatethetransactionalactivities to concentrate the effort on value-adding activities.
Bottom-line benefits•Morereliable “industrialized” finance processes;•Increasedproductivity at reduced costs;•Understandingofcurrentperformancelevels;•Strengthenedorganizational focus on performance
issues;•Enhancedinput/outputratioofthefinanceprocesses;•Significantperformanceimprovement opportunities;•Takingcost out of transaction processing while
mining the flow of information for valuable business opportunities.
Benefits of optimizing Transactional Finance Processes
Transaction processing offers the opportunities to create value and reduce costs all at the same time. But getting it right requires an intimate understanding of the business, which many finance organisations lack.
Transactional Finance
•Areyourfinancecostsgoingthroughtheroof?•Doyoufacealargeandgrowingnumberofmanualtransactions?Areyouawarethatthisintroducesahighriskoferrorsandextendstheclose processes?
•Doyoufacedifficultiesinprovidingtimely,accurate and meaningful financial and operating information at the end of each period?
•Areyousurethatyourecordallrevenuetransactions in your accounting systems? Or do you seek an increased integrity of your revenues?
•Doesthecurrentgovernancestructureofyourfinance department really support operational efficiency?
Planning &Analysis
Transaction Processing
Control
Planning & Analysis
Asset & liability Management
Reporting
Asset & liability Management
Reporting
Current state Future state
Transaction Processing
Control
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How we can help?Our services are designed to help CFO’s in their efforts to:•Identify hidden business costs and provide an
organizational structure to effectively manage and reduce costs – all without diminishing value;
•Simplifyorganisationalstructuresandidentifyandassign roles and responsibilities in the organisation;
•Gaininsightinthecoststructureoftheorganisationand relate all cost components to the organisation’s product, services or customers;
•Redesign the current costing system or implement a state of the art cost model, in line with the leading costmodeltheoriessuchasABCorStandardCosting;
•Explorethereasonsofdifferencesincustomer profitability and how to significantly increase the profitability of the client portfolio;
•Focusonexecutionandcommunicationofprioritiesto the organisation to monitor and report progress against stated goals
Bottom-line benefits•Acompetitivecoststructure that allows the
business to capitalize on growth opportunities;•Ascalable cost model that can easily adapt
to organisational changes and shifting market conditions;
•Streamlined business processes that are easier to manage;
•Acost-conscious culture throughout the organisation;
•Broadquantitativesupportofthestrategic decision-making process
•Keycostingapplicationsservingothercontinuous improvementinitiatives
Develop a Costing Model
Companies often struggle to understand costs as a result of the breadth and interdependencies of activities and operations across the organisation. We offer an essential foundation to enable meaningful analysis and reporting to help execute the business strategy.
Cost Management
•Doesyourcostmodelprovidesufficientinsightintothebusinessactivitiesthatactuallydrivecosts?
•Canyoudeterminewhichactivitiescontributethemosttolong-termenterprisevalue?Canyouidentifyareasthatprovidethebestopportunitiesfor strategic cost reduction?
•Doyouhaveaclearviewonhowpricecutswillaffectyourprofitability?Whatisthecostofextraeffortforaspecialgroupofclientsordistribution channels?
•Areyourstrategiceffortsenhancedbyaclearorganizational structure or do you suffer from complexprocesses,andunclearrolesandresponsibilities?
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Develop Costing Model
Cost Initiative
Pricing/Promotion decisions
Process re-engineering
Value adds vs non-value add
What-if Analysis
Benchmarking Analysis
Product rationalization
From ConceptTo Implement
CFO Services Adressing the challenges of today’s Finance Organisations 9
How we can help?Our services are designed to help CFO’s in their efforts to:•Gainaclearerviewoncashflows and financial
headroom through the preparation of short-term forecasts and liquidity planning templates;
•Integratesimulationandsensitivityanalysis capabilities in financial plans by reviewing, improving and/ordevelopingunderlyingfinancialmodels;
•Monitor business plan outcomes and actions by integrating financial plans with budget and management reporting through robust financial models.
Bottom-line benefits•Visibility on financial (cash) situation;•Greaterconfidence in the feasibility of business
plans under different economic circumstances;•Aneffectivestrategicplan translating your
business strategy into a consistent story about your organization’s future;
•Compliance with creditor’s debt coverage requirements;
•Viewonkeybusinesssensitivities and their impact on financial projections;
•Greateraccountability for implementing business plan actions.
•Broadersupportforstrategicdecisions.
Integrate Performance Management
We assist companies in reviewing, developing or improving business plans and the supporting financial models as part of transactions, restructuring, refinancing or strategic reviews of business units.
Financial and Business Planning
•Doyoulackvisibilityonyourshorttermcashflows?Doesitfeellikeyouare“flyingblind”withrespecttoyourdebtcovenantsorfinancialheadroom?
•Doyouhavetobaseyourstrategicdecisionspurely on your intuition? Would you rather rely onasystemofferingyouquantitativesupport?
•Areyourbudgetslinkedtolongtermplansordoyoufeelalackofmonitoringandownershipwithrespecttobusinessplanoutcomes?
•Yourcurrentbusinessstrategymaybechanging.Doyourfinancialplanningandbudgetmodelsofferflexibilityandsimulationcapabilities?
Integrates Technology Architecture
People and organisation
ValueCreation
Budgeting
OperationalReporting
ManagementReporting
ExternalReporting
Analysis
Intervention
Forecasting Strategy
Planning
Developement and reward
Plan and targetAlign the bussiness to deliver on strategy
Measure and evaluate Run the business and monitor performance
Intervene and realignActive intervention to realign the business
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How we can help?Givenourprovenexperience,wesupportorganisationsand
their CFO’s with:•Adetailedanalysis(incl.benchmarking) of the current
budgeting and reporting processes, capabilities, and tools;
•Thedesign and implementation of a new budgeting & forecasting business model (process, people, technology, organisation), drilling down from the strategic to the operational level;
•Theidentification and prioritization of risks linked to relevant, accurate, timely, and complete data capturing, as well as assessing the reporting process in order to develop an effective management reporting strategy that incorporates leading practices;
•Thedesignandimplementationofanewbudgetingand performance reporting tool, with relevant key performanceindicators,and/orbalancedscorecardslinked to the organization’s strategic objectives.
Bottom-line benefits•Amoreefficientandeffectivebudgeting&
forecasting process, eliminating endless iterations, wasted technology, conflicting goals, and poor decision-making;
•Increasedconfidence in the integrity of reported figures;•Animprovedvisibility to the operational performance
and measurement against targets, helping your management to better understand the business and define relevant action plans;
•Aless-manual budgeting and reporting process, allowing you to spend more time on business partnering, instead of operating as a “concierge service”.
Budgeting & Performance Management
•Areyourcurrentbudgetingandforecastingactivitieschewingupmorevaluethantheycreate for your organisation?
•Isyourbudgetingprocesscurrentlytootimeconsumingandlaborintensiveasdataismanuallyreconciledbetweendifferentsystems,spreadsheets, and other paper sources?
•Areyouspendingtoomuchtimeonputtingtogether an annual budget that is out of date by the time it is published?
•Areyoustrugglingwithchangingyourbudgeting and/or reporting process as you are lookingtointroduceanewbudgetingand/orreporting system or intend to restructure your organisation?
•Doyougetstuckeachtimewhentryingtolinktheperformanceofyourbusinesswiththecorporatestrategicobjectivesandinitiativesthatweretranslatedinyourbudget?
•Aretheremultiple“versionsofthetruth”as non-standard management reports are generated using a series of standalone spreadsheets?
•IsyourFinanceOrganisationvictimofcumbersome,laborintensivemanagementreporting processes resulting from disparate systems and uncontrolled reporting tools?
CFO Services Adressing the challenges of today’s Finance Organisations 11
If you correctly use management reporting as a communication tool, you can enable the management to exercise considerable influence on the success of your company.
Integrates Technology Architecture
People and organisation
ValueCreation
Budgeting
OperationalReporting
ManagementReporting
ExternalReporting
Analysis
Intervention
Forecasting Strategy
Planning
Developement and reward
Plan and targetAlign the bussiness to deliver on strategy
Measure and evaluate Run the business and monitor performance
Intervene and realignActive intervention to realign the business
Integrated Performance Management
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How we can help?OurservicesaredesignedtohelpTreasuryManagersintheir efforts to: •Managecorporatefundingbyoptimizingthefunding
and refinancing structures;•Managederivativesandinvestmentoperations
by optimizing and monitoring corporate hedging strategies;
•Optimizetreasurymanagementbyassessingandbenchmarking treasury management, organizations and processes and designing and implementing best in class solutions like cash-pools, treasury policies, or cash flow forecasting models;
•Managefinancialriskbydesigningandimplementingriskmeasurementmodelsand/orvaluatingfinancialinstruments;
Bottom-line benefits•Anoptimaluseofcashpoolsandeffectivebank
relationships;•Afundingstrategyandstructurethatoptimizesyour
profitability;•Aless-manualtreasuryprocess,allowingyoutospend
more time on defining and executing your treasury strategy;
•Ahedgingstrategythatallowsyoutoeasilyidentifyrisks and take corrective actions when deemed necessary.
Treasury Management Components
Treasury Management
•Whichcash-poolstrategyisthemostsuitablefor your company?
•Doesyourexistingcash-poolingstructureallowthat the right amount of cash is at the right place at the right time?
•Howdoyouorganizeyourinterestandforeigncurrency hedging? Is your risk management alignedwithyourcompany’sstrategy?
•Doyouhaveaclearviewonhowfundingaffects your profitability? What is the optimal funding structure for your company?
•Whichpartsofyourtreasuryactivitiesareautomated?Whichvendoroffersthepackagethat best suits your treasury needs?
•Doesyourtreasurymanagementsystemallowyoutoeffectivelymanagecash,investment,funding and risk?
TreasuryManagement
System
InvestmentManagement
BankRelations
TreasuryManagement
Cash Management
Funding
Risk Management
The current challenging economic environment has highlighted the need for an effective treasury function that supports the organisations in identifying and mitigating treasury risks and maximising effective use of cash.
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Audit•ExternalAudit•Agreed-Uponprocedures&assurancereports•Third-partyassurance&serviceauditor•DueDiligenceservices&publicoffering•GAAP(includingIFRSandUS)Advisory
CFO Services•FinanceOrganization&Strategy•TransactionalFinance•CostManagement•TheLastMileofFinance•Business&FinancialPlanning•Budgeting&PerformanceManagement•TreasuryManagement
Operational Assurance & Procurement•CostReduction•RevenueAssurance•WorkingCapitalOptimisation•InventoryAssurance&Optimisation•OperationalQualityScan•OperationalExcellence•OperationalRiskAssurance•ProcurementScan&OperationalEfficiency•TemporaryStaffing(Procurement& OperationalEfficiency)
Business Process Risks•Internalaudit&InternalControlAdvisory•CorporateGovernance•BusinessContinuity•FSIAdvisory&ActuarialServices•InnovationServices•ForensicServices•CorporateResponsibility&SustainabilityServices•BusinessContinuity•PeopleGovernance•PublicPrivatePartnerships
Technology•Technology•Security&Privacy•TestingServices•ITRiskConsulting•ContractRisk&ComplianceServices•Datamanagement
Deloitte’s Audit & Risk Management expertise as a key differentiator
CFO Services
Audit
Risk M
anagement
& ProcurementOperational Ass
uran
ce
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