Management accounting
and financial planning
We audit and implement management accounting systems covering revenue, expenses, cash flow, profit, budgets, plan-versus-actual analysis and financial accountability.
Revenue, expenses, profit, budgets and cash flow in one integrated financial system.Plan-versus-actual analysis, financial accountability and regular planning for owners and executives.
WHAT THE MANAGEMENT ACCOUNTING SYSTEM INCLUDESfinance → reporting → planning → accountability
01Revenue and expenses: financial control
02Cash-flow statement and income statement: a 12-month financial model
03Budgeting: monthly budgets and weekly cash planning
04Accountability: financial responsibility centers, cost centers and an accountability matrix
OUTCOME
One financial management system instead of uncertainty
Revenue, expenses, financial models, budgets, accountability and recurring planning are integrated into one management system.
ASSESSMENT
How accurately do you understand the company’s financial position?
If these questions create uncertainty, the company needs an audit of its current financial management process or implementation of a management accounting and financial planning system.
Profit for the previous month
Do you know exactly how much the company earned last month?
Owner distributions
Do owner distributions from the business meet your expectations?
Break-even point
Do you know the exact revenue level required to break even?
Customer advances not yet earned
Do you know how much the company owes customers for advances received but not yet earned?
Expense control
The company gains an integrated financial control system with clear visibility and governance over expenses.
Financial position
You will have a clear view of the company’s financial position at any time, even without a finance background.
SYSTEM COMPONENTS
What management accounting and financial planning include
Together with you, our experts will:
System audit
Audit the current financial planning process, including the data collection system.
- financial planning
- data-collection system
- current system
Financial model
Build a 12-month financial model for the company as a whole and by business unit, including a cash-flow statement, income statement and break-even analysis.*
- Cash flow statement
- P&L statement
- break-even point
Accounting policy
Develop and implement the company’s accounting policy.**
- document workflow
- revenue and expenses
- accounting options
Financial accountability
Define financial responsibility centers and cost centers, and create an accountability matrix assigning an owner to each revenue and expense item.
- Financial responsibility centers
- Cost centers
- responsibility matrix
Monthly budget
Establish monthly budgeting and weekly cash planning, including funding requirements.
- monthly budget
- weekly planning
- funding
Executive training
Train executives to use the financial planning system and assume financial accountability.
- executives
- financial planning
- accountability
Investments
Establish a process for evaluating and justifying investments in the business using feasibility studies.
- Feasibility study
- feasibility
- business investment
Budgeting and procedures
Design and implement a budgeting process with a 6–12-month planning horizon.
- 6–12 months
- management accounting
- financial planning
FINANCIAL-SYSTEM ARCHITECTURE
Discuss implementation →
From data to financial accountability
Financial data is connected to the financial model, accounting policy, budgets and accountable executives.
Financial control
The company gains an integrated financial control system with clear visibility and governance over expenses.
Executive accountability
Executives take ownership of financial performance and actively manage revenue, costs and cash flow.
The business operates within its means
The business operates within available financial resources, while owner distributions are planned and made on a disciplined basis.
Clear view of the financial position
You will have a clear view of the company’s financial position at any time, even without a finance background.
FINANCIAL-SYSTEM ELEMENTS
What the management accounting system consists of
Together with you, our experts will:
Cash flow statement
cash-flow statement
cash movements
P&L statement
income statement
profitability
Break-even point
Do you know the exact revenue level required to break even?
planning
Budget
monthly budget preparation
monthly cycle
Planning
weekly cash planning that includes funding requirements
regular cycle
Financial responsibility centers
financial responsibility centers
accountability
Cost centers
cost centers
cost control
Feasibility study
investment appraisal and justification
investment decisionsBusiness units
* A business unit is a separate division within a company that develops and implements its own processes independently of the core business or brand while following the company’s shared policy. Each unit is responsible for a specific business area.
** An accounting policy is a document describing how accounting is organized in a specific company. It includes, in particular, document-workflow procedures, rules for recognizing revenue and expenses, and the accounting methods selected for particular transactions.
BUSINESS OUTCOME
A financial system for owners and executives
The outcome is not theoretical knowledge, but an operating financial management system for the company.
HOW IT IS USED IN MANAGEMENT
The financial system in regular operation
Revenue and expenses become transparent and actively managed, while executives work with budgets, accountability and financial planning.
Expense control
The company gains an integrated financial control system with clear visibility and governance over expenses.
Executive accountability
Executives take ownership of financial performance and actively manage revenue, costs and cash flow.
Budgeting
Establish monthly budgeting and weekly cash planning, including funding requirements.
Planning for 6–12 months
Design and implement a budgeting process with a 6–12-month planning horizon.
Investment decisions
Establish a process for evaluating and justifying investments in the business using feasibility studies.
Documented process
Document the management accounting and financial planning process in full.
HOW WE IMPLEMENT
From audit to a documented financial management system
Together with you, our experts will:
1
System audit
Assessment of the current financial-planning and data-collection systems.
2
Financial model
Cash-flow statement, income statement, break-even point and a 12-month model.
3
Accounting policy and accountability
Accounting policy, financial responsibility centers, cost centers and a financial-responsibility matrix.
4
Budgeting and planning
Monthly budgeting, weekly cash planning and a 6–12-month planning horizon.
5
Training, investment appraisal and process documentation
Executive training, investment appraisal based on feasibility studies and full process documentation.
WHAT THE CLIENT RECEIVES
An operating financial management system
Financial control
The company gains an integrated financial control system with clear visibility and governance over expenses.
Executive accountability
Executives take ownership of financial performance and actively manage revenue, costs and cash flow.
Financial resilience
The business operates within available financial resources, while owner distributions are planned and made on a disciplined basis.
Clear view of the financial position
You will have a clear view of the company’s financial position at any time, even without a finance background.
NEXT STEP
Implement management accounting and financial planning
When financial questions create uncertainty, the company needs to implement—or at minimum audit—its management accounting and financial planning system. This makes revenue, expenses and cash flow transparent and actively managed and creates a practical basis for improving profitability. The result is an operating financial management system, including:
- an audit of financial planning and the data-collection system;
- a financial model: cash-flow statement, income statement and break-even point;
- a documented management accounting and financial planning process.
Discuss management accounting
The outcome is not theoretical knowledge, but an operating financial management system used to improve profitability and support sustainable growth.