Management Reporting

Fast Close

The amount of time until the publication of the current results is a critical factor in the success of publicly listed companies in particular.

If the figures are published too late the market becomes very uneasy until publication and there is the danger that they will disappear among the large number of other results published.

Quick and extensive publication of the results relevant to analysts and investors guarantees that the company receives the required attention and the high quality and efficiency of the company's accounting systems is demonstrated to the outside world.

But there are also numerous reasons for non-listed companies to decide for an accelerated and thus more efficient preparation of their annual accounts:

• Quicker availability of information for quick decision-making
• Creation of the leeway needed for value added activities
• Standardisation of the financial statements preparation process
• Cost savings by shortening the time required for the annual accounts

Preparing the annual accounts becomes a non-event using Fast Close. It is possible to prepare the annual financial statement in 3 to 5 days after the period end date!

Optimisation of corporate performance management

Efficient and sustainable corporate performance management is decisive for the short-term but also especially the long-term success of a company.

Medium-sized companies in particular often have inadequate corporate performance management:

• Management indicators use incorrect reference parameters, for instance, controlling based on pure output quantities, neglecting capital employed.
• Management indicators are insufficiently detailed, such that certain areas are considered as good or bad overall, even though particular parts of these areas deliver a whole range of different results.
• Management indicators are not available in the appropriate quality, resulting in, for example, the neglect of necessary deferrals throughout the year.
• Management indicators are not available in a timely manner, such that responses to negative changes occur too late.
• Optimisation of corporate performance management is determined by these four variables - reference parameters, level of detail, quality and timing - to ensure that exactly the right management indicators are available in the required level of detail, at a sufficient level of quality, and in good time.

Working capital management

Working capital management is often implemented after the introduction of value-based control systems, but also in general to release tied-up capital.

The aims of working capital management include:

• Improving liquidity
• Enhancing scope for internal financing
• Increasing the equity ratio
• Improving creditworthiness and credit rating
• Reducing the interest expense
• Reducing process costs

Studies show that European and especially German companies have substantial shortcomings in the area of working capital management.

Working capital management starts with three relevant business processes:

• Receivables - order to cash process: from the customer’s order through to payment
• Inventories – total supply chain: from product development through to delivery
• Liabilities – purchase to pay process: from the supplier order through to payment

Corporate planning

If a company does not already have medium and long-term plans, it will often prepare such plans for the first time when a venture capital provider comes on board, or for an IPO. Solid financial planning is also an indispensable pre-condition for receiving external financing.

The effects of optimising financial planning are considerable: while plans that are too conservative can result in a company being undervalued or loan applications being rejected, plans that are too aggressive can lead to massive course corrections and a consequent loss of trust by lenders if the planned figures are not achieved.

Extensive, analytically derived financial planning that has been checked for plausibility helps to answer queries quickly and satisfactorily within the context of due diligence investigations, road shows, analysts’ meetings and discussions with banks.

Furthermore, detailed financial planning makes it possible to monitor plans effectively and is thus an indispensable pre-condition for reaching targets that have been set.

Harmonisation of internal and external accounting

Our projects for harmonising internal and external accounting consist of adapting IT systems and interfaces to overall processes, as well as standardising reporting, processes, structures and organisation. There are lots of good reasons for integrating internal and external accounting:

• A company-wide standardised, clear database
• A reduction in data complexity and increases in the speed and integrity of data
• Compatibility between internal and international accounting
• Cost savings in personnel, organisation and IT

Accounting check-up

We will identify where action is required and what potential exists on the basis of your company’s existing structures and the processes and methods it uses.