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In the earlier article,we understand some of the reasons/justifications and challenges for a faster close. So what can be some of the initiatives to drive a “faster close”:- Review the work flow/process ( refer earlier article) Increased automation – for example,online daily posting of sub ledgers integrated [...] The earlier article dealt with some of the reasons for preparing the financial forecast. As for the length and depth/details of the financial forecast,it varies as tabulated below: Purpose/Requirements How detailed? 1 To obtain banking facilities 12 months + 2 years 2 To restructure outstanding debts with banks 12 months + 3 to 6 [...] Do we know why we need to prepare financial forecast? Well,there are a few simple reasons: To obtain Banking facilities by preparing projected financial statements like the Income Statement,Balance Sheet and Cash Flow Forecast. With the forecasts,both the banker and company is able to determine whether sufficient profits is generated to pay [...] Sometimes,we might be confused with certain terms used like: Flash Best-estimate Forecast Budget Plan Normally flash is when the company’s cut off is over but the accounting deadline for submission is still a bit far away like about 7 to 10 days. Local management or your overseas bosses want to see a “ [...] It is easier said then done by wanting to institute financial discipline into the organization. To implement accurate and timely financial planning,it is quite difficult for the following reasons: We need to get data from other operating management of different business unit. We are now crossing outside our own finance border into the operation [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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