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Bank Reconciliation (Cheque Return - Finance Company)
Bank Interest (rate reduction benefit)
Cost Centre Accounting: Poor MIS – wrong business decision
Ensure timely and complete Statutory Compliances
ROC Annual Report
Disallowances of expenses and penalties
Cash Flow Forecasting : 2 years Plan and 13 weeks Rolling forecast
Plan for the worst. Await no surprises
Receivables Management: Revenue is Vanity, Profit is Sanity, Cash is Reality
Cost Management ILLUSTRATIONS: Rentals – Measuring Chargeable Area. Employee Exps – e.g. Business Development Lunch Lawyers Bill – Billable Hours Support Services Provider – Cafeteria / Transportation, etc. Travel – Cost vs. Frequent Flier Miles Banking Operations – OD / CA Utilization
Post Listing Compliances and Public Company Reporting
Financial Reporting: Numbers to Text Reporting Financials is an Art and finesse in financial reporting distinguishes a good finance professional from the rest. ILLUSTRATION Option 1: The Company closed Q3 with $ 5 mn in sales and $500K in losses. Option 2: The Company closed Q3 with $ 5 mn in sales, as compared to budget of $6 mn and Net Loss of $ 500K as compared to budgeted loss of $200K. Option 3: The Company closed Q3 with $ 5 mn in sales as compared to $ 4 mn sales last quarter, registering a growth of 25%. The company however generated sales of $ 2mn in the same quarter (Q3) last year thereby posting a growth of 150% year-on-year. While the company had set an aggressive sales target this year, since last BOD meeting, efforts are on to control costs and instead of only chasing revenues. While the net loss for the quarter was $500K, the company incurred a one-time non-cash cost on account of ESOP’s issued to key employees of $ 1mn. If excluded, the company generated a profit of $500K, being the highest profit per quarter since inception.
The list can go on……….. Summing up : Today’s CFO is like Clark Kent, who appears simple, but doubles up as a Superman, performing multiple challenging tasks – so he is not just a CFO but a Super CFO .