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CASE STUDY - STREAMLINING
FINANCIAL REPORTING
The Business Challenge
The Board of a software developer was concerned about the lack of clarity,
consistency and visibility is the financial reporting system. Their
key questions at Board meetings were not being adequately answered,
for example;
- "What implications do the operating results over the last
three months have on the result for the full year and the outlook
for next year?"
- "If we were to take on that new sales team in the US, how
long before they need to start hitting sales targets?"
The business challenge was to deliver key comprehensive financial data
in a clear and relevant format on recent operating performance and forecasts
for the future.
How OFM Solutions helped
The OFM Solutions team developed an integrated reporting format and
delivered monthly to the members of the board a financial reporting
pack containing:
- One page commentary on Key Financial highlights and operating summary;
- One page income statement, with comparatives, actuals verses plan
and prior month, for month and year to date;
- One page rolling 12 month cash flow projection.
Value Delivered
The benefits achieved are significantly more clarity and improved visibility
over the future. Board members are more comfortable with the financials
and less time is taken up at Board meetings clarifying the numbers.
Consequently, the Board meetings are more effective as the Board now
spend significantly more time discussing, in the light of significantly
improved financial reporting, how best to achieve the corporate goals
and objectives.
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