Finance Function Efficiency

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Nowadays, organisations expect finance functions to be the guard of order and good corporate rules, financial discipline and best business practices. Finance managers face a dilemma, not being certain to what extent they should concentrate on delivering added value to their business and to what extent they should meet the requirements of best practices and standards. One thing, however, is certain: nowadays, in a dynamically developing environment, where cost pressure becomes a norm, the finance function in an organisation should strongly demonstrate its added value to business and identify opportunities for improving financial performance. 

Many financial managers from leading organisations are currently working on changing the role of finances in their organisations - from being traditionally perceived as having a supporting function to the role of a business partner. Assuming the role of a business partner allows the finance function to focus on delivering added value, supporting and consulting the decision-making processes and limiting its involvement in typical transactional information processing and reporting.

How can PwC help your company?

PwC has vast experience in helping its clients formulate an appropriate approach to introduce finance function changes. With our help, finance function will start to mutually influence control elements, costs and efficiency in direct relation to the business strategy and at the same time will help create a structure and culture that react to changing conditions.

We assist our clients in improving the efficiency and productivity of finance and accounting. Our knowledge and experience in finance and accounting as well as our organisational and technical know-how can help improve basic competence in processing and reporting and enforce the finance function in supporting business decisions and organisation strategy development.

Choose an issue to learn how we can help your company:

Finance Function Development Strategy

Typical client problems:

  • Company’s processes are inefficient, manually intensive and cause a disproportionate amount of finance time devoted to transaction processing
  • The company is experiencing a high cost of finance relative to the value of the service delivered
  • There is low internal satisfaction with finance services in the company
  • Finance operating model is not aligned with the company’s strategy
  • The company is experiencing growing demands from external and internal stakeholders
  • The finance vision and strategy are unclear

How can PwC help you?

  • Performing diagnostics of the company's finance function to assess the current status of its key areas, including how it compares to other companies' best practices
  • Providing help in forming a vision for a finance function that supports the corporate strategy’s implementation
  • Developing operating model that encourages interaction and creates the right conditions
    for change

Benefits for our clients:

  • Focusing your financial strategy on helping implement the corporate strategy and supporting the company's business strategy
  • Being sure that your financial strategy corresponds to the functional strategies of other corporate divisions (IT, HR, Purchases)
  • Getting a prompt, high-quality assessment of whether the goals set for the finance function as a whole, as well as for the management and employees of various divisions, are being achieved

Budgeting and Management Reporting

Typical client problems:

  • Value destruction — lack of ability to generate profits to cover operating costs and the cost of capital employed
  • Lack of parameters and key performance indicators analysis for the company and its owners
  • Inadequate and ineffective budgeting, planning and reporting systems
  • Lack of or inappropriate control of the effectiveness of the business processes implemented
  • Lack of relevant tools to support the control of results obtained
  • Lack of a system to measure strategy implementation
  • Lack of reliable information on costs in terms of products, distribution channels, customers, sectors and geographical markets

How can PwC help you?

  • Analysing the adequacy of the indicators used and their definition
  • Assisting in the creation of budgeting models and procedures
  • Assisting in the development of forecasting and planning processes
  • Developing company’s strategy implementation measurement models in relation to KPIs (e.g. Balanced Scorecard)
  • Developing management reporting models
  • Defining objective, responsibility and effectiveness of business processes assessment system
  • Advising on development of data model concepts and architecture of applications that support the control and reporting of results assistance in the analysis and selection of systems supporting result management
  • Developing and implementing value creation measurement system

Benefits for our clients:

  • Performance indicators aligned with strategic goals
  • Accurate, reliable and consistent information provided to management and investors
  • Comparable indicators at all management horizons: strategic, medium-term, operational
  • Effective planning and resource allocation system
  • Shortened period of time required to prepare management information
  • Management reporting produced with a required level of detail
  • Performance-based motivational system

Smart Close

Typical client problems:

  • Ineffective and long-lasting reporting process
  • Ineffective manner of gathering information for reporting (lack of appropriate data structure)
  • Constant need to co-ordinate management data and financial/statutory information, which results in the excessive prolongation of the consolidation process
  • Lack of understanding of the directions concerning reporting standards

How can PwC help you?

  • Optimisation of business processes and methodological approaches
  • Development of policies and procedures
  • Performance improvement
  • Support in implementation of IT solutions
  • Streamlining organisational structures and HR processes

Benefits for our clients:

  • Complete transparency of the company's operations through use of uniform data
  • Adherence to global best practices in the presentation of financial statements
  • Improved report quality and investor confidence
  • Cost reduction due to the use of standardised processes and procedures
  • Increased staff motivation
  • Fast management decision-making based on reliable financial information

Shared Service Centers and Outsourcing

Typical client problems:

  • Inefficient cost structure and increasing operating costs to support the finance function
  • Same back office functions are performed in different locations to support simple mass transactions
  • Internal and external customer service issues
  • Inefficient billing
  • Business processes not standardized, harmonized or automated
  • Multiple systems are used, ERP platform is not standardized

How can PwC help you?

  • Reviewing the condition of a company's financial function based on survey results, and comparing those results with best practices
  • Creating an SSC operating model  framework, including recommendations on the organisational structure, the allocation of processes, and the selection of a location 
  • Formulating a detailed model for calculating SSC staffing
  • Developing an SSC implementation plan
  • Developing SSC performance indicators
  • Formulating detailed SSC operating model elements
  • Planning an approach for the entities' move to SSC, as well as a general migration plan
  • Preparing a strategy and a detailed  communication plan
  • Supporting personnel training, including preparing a training plan and training materials
  • Support in SSC implementation

Benefits for our clients:

  • Management can focus on the core business, instead of spending time managing the accounting function
  • Shareholders and management get direct access to the most up-to-date, reliable and consistent information from all business units
  • The costs of maintaining bookkeeping and tax accounting can be reduced by 30-60%
  • The quality and speed of operations are improved, and headcount can be reduced

Accounting and Reporting Improvements

Typical client problems:

  • Big quantity of manual adjustments during transformation from statutory to IFRS financial statements
  • Inability to provide information to management for timely decision-making
  • Incompatibility between the organization’s departments, absence of unified classifications, chart of accounts
  • Absence of formalized policies and procedures
  • High costs to support finance function

How can PwC help you?

  • Performing detailed diagnostic review of financial function and benchmarking of financial processes against best global practices
  • Helping in developing a streamlined financial function structure
  • Developing and aligning accounting policies under local GAAP, IFRS and other accounting standards
  • Developing and implementing methodology of transition to IFRS or other accounting standards (restatement and consolidation of financial statements)
  • Developing and implementing methodology of reporting system
  • Developing IT-based practical tools to meet user needs in analytical data at different levels
  • Adapting and developing accounting and IFRS reporting procedures and regulations to be implemented in IT systems
  • Defining functional requirements to IT systems specifically tailored and customised to your business needs
  • Introducing own methodology developed in house to shorten the period of time required to prepare financial and management statements and to improve their quality

Benefits for our clients:

  • Transparency of accounting and reporting processes
  • Minimal costs on effective processing of transactions, keeping accounting records and regular financial reporting
  • High level of accuracy and reliability of financial information
  • Timely reporting to stakeholders on business performance and sound management decision-taking process
  • Convergence of management and financial reporting systems
  • Professional development of staff by gaining further experience


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Finance Function Development Strategy Budgeting and Management Reporting Smart Close

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Shared Service Centers and Outsourcing
Accounting and Reporting Improvements