📊 BUDGETING
It's about planning and forecasting revenue and expenses. For instance, a company creates an annual budget outlining expected sales and planned expenditures to ensure they stay within financial limits.
This procedure interests the CFO, finance team, and department managers.
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📚 ACCOUNTING
This involves recording and reporting financial transactions. To illustrate, an accountant records daily sales and purchases in the company's ledger to prepare monthly financial statements.
Typically, accountants, the CFO, and auditors are involved in this task.
🔍 AUDITING
It's about evaluating financial statements for accuracy and compliance. For example, an external auditor reviews the company's financial records and processes to ensure they adhere to legal standards.
The external auditors, internal audit team, and board of directors are generally concerned with this activity.
💰 PAYROLL MANAGEMENT
This entails handling employee payments and taxes. Consider this, the HR department processes payroll bi-weekly, ensuring all employees receive their salaries and applicable taxes are withheld.
This process is of primary interest to the HR department, payroll specialists, and employees.
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💸 CASH FLOW MANAGEMENT
It's about monitoring and optimizing cash inflows and outflows. For instance, a business forecasts its cash flow to ensure it has enough liquidity to cover upcoming expenses, such as paying suppliers.
CFOs, the finance team, and treasury department typically focus on this aspect.
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📈 FINANCIAL REPORTING
This involves preparing financial statements such as balance sheets, income statements, and cash flow statements. For example, at the end of each quarter, the finance team prepares and publishes financial reports for stakeholders.
Those usually concerned with financial reporting include the CFO, finance team, investors, and board of directors.
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🧾 TAX MANAGEMENT
It's about planning and complying with tax obligations, including filing tax returns. For instance, the company hires a tax advisor to ensure all tax filings are accurate and submitted on time to avoid penalties.
Tax advisors, the CFO, and the accounting department typically manage this procedure.
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📥 ACCOUNTS RECEIVABLE MANAGEMENT
This entails managing money owed to the business by customers. To illustrate, the accounts receivable team sends invoices to clients and follows up on overdue payments to maintain cash flow.
This process interests the accounts receivable team, CFO, and sales department.
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📤 ACCOUNTS PAYABLE MANAGEMENT
It's about managing money the business owes to suppliers and creditors. For example, the accounts payable department schedules and makes payments to suppliers according to agreed terms.
Usually, the accounts payable team, CFO, and procurement department are involved in this task.
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🏷️ INVENTORY MANAGEMENT
This involves tracking and managing inventory levels and costs. Consider this, a retail store uses inventory management software to track stock levels and reorder products as needed.
Inventory managers, supply chain managers, and the procurement department generally focus on this aspect.
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🔎 FINANCIAL ANALYSIS
It's about analyzing financial data to support decision-making. To illustrate, a financial analyst reviews sales data to identify trends and recommend strategies for increasing revenue. Financial analysts, the CFO, and department managers typically handle this task.
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🏗️ CAPITAL BUDGETING
This entails evaluating and planning long-term investments and capital expenditures. For instance, a company evaluates the potential return on investment for a new manufacturing plant before proceeding with the project. This procedure involves the CFO, finance team, and senior management.
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⚠️ RISK MANAGEMENT
It's about identifying, assessing, and mitigating financial risks. For example, a business purchases insurance to protect against potential losses from unforeseen events, such as natural disasters. Risk management teams, the CFO, and board of directors are typically concerned with this aspect.
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💼 TREASURY MANAGEMENT
This involves managing the organization's financial assets and liabilities to optimize liquidity and financial stability. Consider this, the treasury department invests surplus funds in short-term securities to maximize returns while maintaining liquidity. The treasury department, CFO, and finance team generally manage this procedure.
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📊 COST ACCOUNTING
It's about tracking, recording, and analyzing costs associated with the production of goods or services. To illustrate, a manufacturing company uses cost accounting to determine the cost of producing each product and sets prices accordingly. Cost accountants, production managers, and the CFO are typically involved in this task.
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🛡️ INTERNAL CONTROLS
This entails implementing procedures to safeguard assets, ensure accuracy, and promote operational efficiency. For example, a company implements access controls and regular audits to prevent fraud and ensure financial data integrity. This procedure interests the internal audit team, CFO, and compliance officers.
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💳 CREDIT MANAGEMENT
It's about evaluating and managing the credit extended to customers. For instance, a business conducts credit checks on new customers before extending credit terms to minimize the risk of bad debts. Credit management teams, the CFO, and sales department generally handle this task.
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🧾 EXPENSE MANAGEMENT
This involves controlling and analyzing business expenses to ensure cost efficiency. Consider this, the finance team reviews monthly expense reports to identify areas where costs can be reduced. The finance team, department managers, and CFO typically focus on this aspect.
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✔️ COMPLIANCE MANAGEMENT
It's about ensuring adherence to financial regulations and standards. To illustrate, the compliance officer ensures all financial practices comply with industry regulations and company policies. Compliance officers, the CFO, and the legal team generally manage this procedure.
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📈 INVESTMENT MANAGEMENT
This entails managing the organization’s investment portfolio to maximize returns. For example, the investment team diversifies the company's investment portfolio to balance risk and achieve optimal returns. Investment managers, the CFO, and board of directors are typically involved in this task.
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📦 PROCUREMENT MANAGEMENT
It's about managing the acquisition of goods and services to ensure cost-effectiveness and quality. For instance, the procurement department negotiates contracts with suppliers to secure the best prices and quality for raw materials. Procurement departments, supply chain managers, and the CFO generally handle this aspect.
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📉 FINANCIAL PLANNING AND ANALYSIS (FP&A)
This involves supporting strategic planning through detailed financial analysis and forecasting. Consider this, the FP&A team prepares a five-year financial plan to guide the company's strategic initiatives and investment decisions. The FP&A team, CFO, and senior management typically manage this procedure.
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💳 DEBT MANAGEMENT
It's about managing the organization’s borrowing and repayment strategies. To illustrate, the finance department structures loan repayments to maintain a healthy balance between debt and cash flow. This procedure interests the finance department, CFO, and board of directors.
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🎁 GRANT MANAGEMENT
This entails managing funds received from grants and ensuring compliance with grant requirements. For example, a non-profit organization tracks grant expenditures and submits reports to the grantor to demonstrate proper use of funds. Grant management teams, the finance team, and program managers are typically involved in this task.
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