1. Finance
Often Companies Consider Finance as controlling
department but they are rarely so, It must be understood that Finance is
required only when there is some use of money, and that use for money is when
there is some objective. ABC3M Considers Finance as Service
Department to other functions and it owns only one Function, Finance. The
Objective of Finance is to Provide Liquidity, Information and Best Mix of
Sources of Finance to users of It. Apart from same it has Duty towards
providers of Finance as Regulator over other functions and Towards Users of
Finance is to provide then acute knowledge about rules of money and how they
can achieve financial efficiency and identify Capital Needed towards objectives
of Company, Finance Functions another role is to get involved into Strategic
Planning to ensure that all objectives of Company are translated into Financial
Performance Parameters and then help Compliance team to ensure same are
translated into Operational Parameters. The Key aspects that are discussed
here:
1.
Is Break even Exercise is done in Real Time
Basis with use of Manufacturing Accounting?
2. What
is Working Capital Position of Company through Peak Season and through Non-Peak
Season
3. Does
Finance Department Provides Cash to Cash Cycle Based Operations Control Inputs
to Other Departments like Purchase and Production for Managing Market
Perception
4. What
is Finance Department Effectiveness in?
a. Financial
Controllership
b. Management
Reporting &
c. Compliance
Readiness
5. Does
Finance Department has made Provision for Contingent Expenses?
6. Does
Finance Department Observes BEP Point Attainment for Each Month, Quarter and
Annual Basis
7. Does
Adequate Reserves of Money and Working Capital Is Maintained by Finance department
8. Does
All Accounting Standards are reported while Accounting?
9. Does
Manufacturing Accounting is Followed to get relevant Information to control
Cost Driving Expenses
10. Does
Record of Sunk Costs and Write Offs is maintained separately and periodic
review is taken for use of same for alternative application?
11. Does
Cost of Capital also Includes Cost of Equity and Return on Market Value of
Assets for actual Productivity Analysis of company as whole?
12. Does
Cash Flow Statement and Fund Flow Statement is prepared for Budgetary Control
13. Does
Special Provisions are made for Ageing Equipment and Track of Asset Wise Track
is Maintained
14. Does
Audit Queries are aptly shared to BOD with reasoning and Control Action
15. Does
Safety Cash Reserves are maintained for non-seasonal period to cover
operational expenses as well as Creditors Payments
16. Does
Finance Department has made provisions to cover foreign Translation Risks
17. Is
Adequate Liquid Funds are maintained in company?
18.
What is Cost of Debt to Company?