In my earlier article on the Workflow Management concept, I wrote regarding standardization of process and reporting.

One important area is when the financial executive needs to regulate subsidiaries financial controllers in terms of reporting timeline and the understanding and speaking the same language within the group.

My suggestions are:

• to set up a uniform naming file method
• to set up a time-table showing all timelines, Head office’s reports and local subsidiaries can includes theirs in this time-table.

Uniform naming file method:

Let’s me illustrate:

• Entity Code say 7010 for Malaysia, 7011 for Indonesia ,etc

(normally, you should use back the accounts code in your general ledger hence making it easier to understand these entity codes)

• Daily/Weekly/Monthly/Quarterly/Yearly

Can be signified by D for daily, W for weekly,etc

• Report name

Wherever possible, always standardize the symbol of all the normal reports from subsidiaries to Head Office

• Currency used

To be used for foreign subsidiaries

• Date & Year

Year is important as its help in future archiving ( if need be)

Let’s see what’s mean here:

7010MFinReptRm24.3.2006:
It says that Head Office have received a file from Malaysia. The file is a monthly compliance file called Financial Report which is denominated in Malaysian Ringgit and is dated 24th March 2006.

This is particularly useful for sorting within your computer’s directory and for archiving when months have passed and you need to look for the files.

Time-table:

The next discussion is on the time-table. Normally, this time-table is release to the subsidiaries in the early part of the year showing the date of all reports needed by Head Office. It is columnar and subsidiaries can include their own local timeline in this time-table. In the subsidiaries, the finance staff can pin up this time-table hence facilitating the communication of what’s require from head office or local management. In this table, you can include your local meeting, fixed assets count, your participation in the marketing / departmental meeting and others.

Well if head office wants to propagate its finance vision and mission, do put this up at the heading of this time-table. Every time when the subsidiaries finance staff look at this time-table, they will automatically be accustomed to it.

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• Financial Operation: Simple Automation: Shared Service Folder for Overseas Subsidiaries
• Setting Up An Operational Headquarters (OHQ) In Malaysia (Part 1)
• Financial Operations: Organization Chart Of An Accounts & Finance (A&F) Department
• Technical Summary Of IAS 27 Consolidated and Separate Financial Statements
• Foreign Exchange Management: Internal Hedging Method (Part 3 of 4)