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and accelerate your company's growth
Financial Planning
and Execution
Financial planning and execution are crucial elements for a company to compete and succeed in today's market. Those who neglect this aspect face high financial costs and expenses, hindering their competitiveness. Time wasted generating cash flow reports can hinder the achievement of profitable objectives. In today's environment, companies with a solid financial vision are the ones that emerge as market leaders.
Proper financial planning not only aligns the company's processes but also improves financial efficiency and optimizes resource utilization. Accurate financial information provides agile leadership, which enables accurate and timely decision-making. The availability of reliable information in the financial plan enables the company to make agile financial decisions and it maximizes the value of money in the forecasted future.
At London Consulting Group we
ensure your company’s success through
the development of a financial plan
that focuses on profitability
Promote digital transformation in the financial department through methodologies and tools that provide real-time information on the company's cash flow. Take control of key financial indicators and back your decisions with a reliable financial plan. Manage information efficiently and build accurate short- and long-term cash flow projections. Develop executive leaders who have an agile approach to decision-making, ensuring accurate and profitable results.
SOLUTIONS
How we achieve digital transformation in the finance department
Our financial department approach focuses on cultivating a new leadership style based on building collaborative teams and a genuine interest in developing the company’s personnel. We drive digital transformation in the financial department by optimizing the processes and tools that enable the visualization, collection, and efficient management of the company's main financial indicators. By prioritizing the optimization of these processes, we reduce financial expenses which then positively impact the company’s overall profitability.
METHODOLOGY
Our process for developing a successful financial plan
Deep-dive Analysis
We start our approach in the financial department by comprehensively evaluating all processes and identifying areas that can be improved. Based on this evaluation, we prioritize the changes that need to be made to meet the objectives established by the company.
How we do it
• Analyzing the current process: In-depth evaluation of the current financial processes to identify areas for improvement and optimization. Detailed examination of how the current financial tools are used to determine efficiency and effectiveness.
• Alignment with general objectives: Analysis of the company's general objectives to ensure that the financial processes are aligned with the company’s vision and strategic direction. Identifying areas of improvement that directly contribute to the achievement of corporate objectives.
• Determining the resources required: Assessing the current resources and defining the resources needed to carry out the digital transformation process in the financial department. Identifying the technological and personnel investments required for an effective implementation.
• Order-to-Pay and Order-to-Cash analysis: Detailed evaluation of the current processes related to the Order-to-Pay cycle. Comprehensive analysis of the Order-to-Cash cycle to identify areas that can be improved and optimized.
Project
Experience a strategic breakthrough in your company by implementing a macro-conceptual model that integrates your processes, technology, and human talent. This carefully designed integration ensures that the resources are precisely aligned with the financial processes, thus increasing financial planning efficiency and effectiveness. We work closely with your company's managers to ensure that every aspect of this model is tailored to your organization's specific goals and objectives, providing you with a competitive advantage and a clear path to financial success.
Accounting Structure and Balance Sheet
• Defining the matrix of accounts and sub-accounts: Establishing a detailed accounting structure for accurate financial management.
• Establishing the parameters for the ERP system’s structure: Configuring the accounting structure in the ERP system for an effective and efficient integration.
• Multilevel sales budget model: Developing a model that encompasses various budget levels, enabling more detailed and strategic planning.
• Expense budget model: Creating a specific model for forecasting and managing expenses and optimizing financial control.
• Inventory valuation model: Establishing a detailed and efficient model for valuing inventories and ensuring that the resources are adequately managed.
Order-to-Cash
• Defining a payment type structure: Establishing a detailed structure that covers different payment methods for a versatile financial management process.
• Discount and credit control policies: Developing clear policies that regulate discounts and credit terms, ensuring efficient and profitable management.
• Agile credit scoring model: Creating a fast and effective model for evaluating credit risk and streamlining the credit granting process.
• Defining decommitment strategies and mechanisms: Establishing strategies and procedures for releasing credits, ensuring a balanced management process.
• Developing an automatic management mechanism or algorithm to increase or decrease the credit quota: Creating an algorithm that automatically and dynamically adjusts the credit limits, improving efficiency and decision-making.
• Designing a payment collection scheme: Developing a structured scheme for managing the payment collection process, optimizing the process and improving the recovery of funds.
Order-to-Pay
• Structuring the DPO vs. DSO: Designing and structuring the Days Payable Outstanding (DPO) and Days Sales Outstanding (DSO) indicators in order to efficiently manage the financial cycles.
• Establishing the ERP system’s parameters: Adjusting and configuring, in detail, the ERP system in order to align it with the financial processes, ensuring effective integration.
• Updating the Supplier Master: Reviewing and updating the entire supplier master in the system, ensuring accurate and consistent information.
• Designing the returns to supplier process: Developing a structured process for managing the returns to suppliers, improving efficiency and communication in this area.
• Automating the reports for uploading payments or shipments: Implementing an automated system that generates the reports, facilitating and optimizing the uploading of payments and shipments.
Banks and Cash
• Standardized design of the cash cut-off/closing process: Developing a uniform and efficient procedure for cash desk closing, ensuring consistency and accuracy when managing the financial records.
• Automating the bank reconciliation process: Implementing tools that automatically and efficiently reconcile transactions between internal records and bank statements, reducing errors and reconciliation times.
• Implementing and standardizing the BI tool: Developing and implementing a Business Intelligence (BI) tool for visualizing and analyzing financial data. This tool provides key information that is used for strategic decision-making.
Intercompany
• Identifying companies within the intercompany scheme: Process of recognizing and classifying those companies that participate in intercompany transactions, ensuring that these operations are efficiently managed.
• Defining criteria and special agreements: Establishing parameters and agreements for particular transactions made between related companies, ensuring a transparent operation that is aligned with the strategic objectives of the parties involved.
Cash Flow Tools
• Standardizing the reports: Developing standardized processes and formats for generating the financial reports, ensuring coherence and consistency in the presentation of information.
• Implementing forecasting tools: Adopting tools that facilitate financial planning and forecasting, allowing you to anticipate scenarios and optimize future decision-making.
BENEFITS
Gain better performance by optimizing
your financial processes
Optimize your company's financial management with a solid strategy that drives growth and profitability. Make informed and agile decisions using a comprehensive financial plan that takes into account your organization's key indicators. Simplify your financial processes to achieve operational excellence and make the most of the tools available, increasing your financial income. With our guidance, you can strengthen your company's financial position and prepare it so that it can successfully face the market’s challenges.
What makes us different
• Close collaboration with the Finance department: We work closely with the finance team to understand and address your specific needs.
• Agile leadership style and personnel development: Establishing an agile leadership style that fosters personnel development and growth.
• Structuring a roadmap for generating working capital: Creating a clear strategic plan to optimize the generation of working capital.
• Improving information accuracy: Implementing measures that ensure the accuracy and reliability of the financial information.
• Simplifying processes with systematic execution: Designing and implementing simplified processes that are supported by systems to achieve operational excellence.
• Implementing BI flow management tools: Integrating Business Intelligence solutions that facilitate how the financial information is managed and analyzed, enabling better informed strategic decision-making.
TRENDS
How financial planning defines future decisions
Financial planning and execution will be a must-have competitive factor in the coming years. Brainyard's Summer 2020 Financial Priorities Survey highlights a significant shift: 72% of companies surveyed consider the Financial Planning and Analysis (FP&A) function increasingly vital. This trend reflects the evolution of financial planning from an administrative task to a vital strategic component. Furthermore, a Business Application Research Center (BARC) report reveals an impressive increase in the use of predictive financial planning technology in corporate planning, rising from 4% in 2020 to 27% in 2022. This increase underscores the need for advanced planning and analytics tools to address the complexity of today's business environment.
The Importance of Financial Forecasting, Oracle
The top 7 FP&A trends for 2023, Jedox