INTRODUCING BUSINESS PLANNING AND BUDGETING PROCESSES

Introducing business planning and budgeting processes for a company engaged in industrial manufacturing

  • Deadline : 4 months

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KEY OBJECTIVE:
Efficient management of the Company's finances and resources to ensure greater business accountability and resilience to external changes

PROJECT TASKS:

  • Setting up the structure of financial responsibility centers (FRC) based on the company’s Business Model (BM) and Organizational Structure
  • Developing and approving the Management Accounting Policy
  • Updating departmental directories, expenditure items, and cash flows in the accounting system under the Management Accounting Policy
  • Developing budget options for data collection and consolidation
  • Drafting Regulations on the Budget and Investment Committee (authorities, business processes, decision-making procedures, and control over their implementation)
  • Drafting and approving the company’s Business Plan
  • Launching the Budget and Investment Committee to approve quarterly/monthly plans and analyze their respective implementation

PROJECT OUTCOMES

  1. Cost optimization (-) 12%: 
    • optimizing inventory procurement costs (monitoring and control over prices and needs)
    • identification and reduction of inefficient costs
  2. Effective capital allocation:
    • investments in more profitable and promising projects based on calculations of their respective indicators
  3. Effective floating capital management:
    • managing receivables and payables
    • inventory reduction (-) 18%
  4. CEO labor costs reduction (-) 20%:
    • agreeing upon scheduled payments set in the Business Plan and budgets not involving the CEO

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