Financial management

Financial management is one of the most important components in realizing the goals and ambitions of a company. Money is the heart of business, and managing cash, assets, and finance sustainably is the ultimate determinant of a company’s long term success.

Our financial management services cover:

CFO Function

The CFO (chief financial officer) role in a company is a multifunctional one, responsible not only for financial management, planning, reporting, but also risk management, data analysis, and strategic planning.

When providing a CFO, we do not just simply provide consulting services—we ensure the CFO will have the right mix of professional knowledge, experience, and skills to handle every financial and managerial aspect of your business.

The outsourced CFO gets involved hands-on and closely communicates with you to gain an in-depth understanding of your business. Our CFO can manage your business and financial or strategic requirements for as long as necessary.

Instead of hiring a full-time, in-house CFO, you can outsource your needs with a part-time CFO, or use our interim CFO function while you search for your own CFO. An outsourcing arrangement helps you:

• benefit from the experience and best practice of our professional team
• save money on hiring and training costs
• choose only the services you actually need
• solve daily, finance-related issues

SCHNEIDER GROUP offers:

Complex outsourcing of CFO functions, including:

  • Financial controlling
  • Tax planning
  • Financial analysis
  • Control of foreign currency flows and currency risk analysis
  • Other options according to your needs

Treasury and Cash Management

Corporate treasury and cash management functions are important to ensure that a business has sufficient liquidity to meet its obligations, while managing payments, receipts, and financial risks effectively. While responsible for planning payments and receipts, they also use cash for short-term investments, if a company so desires. They ensure a company’s financial stability and solvency, avoid cash shortages in daily operations, analyze cash flow, and find financing.

We support local corporate treasury teams with planning and processing payments by analyzing contracts, invoices, budgets, and taxes, reporting and comparing actual vs. planned data, and suggesting financing methods.

SCHNEIDER GROUP offers:
  • Cash flow planning and budgeting (annually, quarterly, monthly, weekly)
  • Cash flow reporting (quarterly, monthly, weekly)
  • Planning payments and preparing payment calendars
  • Payments initiating & approval process organizing (regulations creation)
  • Foreign currency cash management (conversion and payment planning, etc.)
  • Short-term investing of deposits
  • Analysis of credit instruments

Accounts receivable management

Accounts receivable (AR) management ensures timely payments of customers, delivery of prepaid goods and services, and monitors the aging of accounts receivable. AR management also monitors the level of AR in relation to the financial position and plan of the company. Complex receivables management reminds customers to pay, analyzes current receivables, reasons for non-payment, or delays, processes counterparty pre-checks, and ensures compliance with tax authority regulations.

Good receivables management maintains a company’s professional image, helps prevent overdue or non-payment, strengthens the company’s financial position, reduces bad debt, and improves cash flow which can then be used for investments or acquisitions.

SCHNEIDER GROUP offers the following:
  • Organizing a process for customer pre-checks
  • Regular analysis of payment terms
  • Accounts receivable aging control
  • Monitoring expiration of statute of limitations
  • Automation of reminder processes
  • Regular active reconciliation and dispute resolution
  • Bad debt provisions management
  • Collecting documentation and contacting counterparties
  • Analysis of accounts receivable level, calculation of marginal receivables
  • Detailed inventory of accounts receivable

*within compliance controlling processes, represented on the Legal Services page

Accounts payable management

Accounts payable are the amounts that are owed to the suppliers of goods and services to the business. It is important for a firm to manage its accounts payable effectively. If the accounts payable are paid too early, companies incur an opportunity cost by using cash that could have been used elsewhere. However, if payments are paid too late, it may spoil the relationship with the suppliers, incur interest payments, and lead to stricter credit terms in the future.

Effective accounts payable management can provide opportunities for a company to use its cash and prove the company to be a reliable customer or business partner. This trust can lead to discounts from suppliers which will improves profitability in the long run.

Effective allocation and diversion of funds from strictly scheduled payments allows them to be directed toward urgent needs, short-term investing, or become a source of inexpensive borrowing.

SCHNEIDER GROUP offers the following:
  • Accounts payable aging control
  • Regular analysis of payment terms
  • Monitoring expiration of statute of limitations
  • Arranging timely payment initiation
  • Developing possible contracts payment terms
  • Regular active reconciliation and dispute resolution
  • Control of advances received
  • Analysis of accounts payable level and structure
  • Detailed inventory of accounts payable

Financial planning & budgeting

Financial plans and budgets are critical to a company’s current and future success. The two are related, but are not the same. A financial plan is a long-term strategy, while a budget is shorter term and focuses on cash flow, income, and cost management based on actual data. Budgets are usually developed annually, but some companies need to be flexible and allow the budget to be adjusted throughout the year as business conditions change.

Budgeting tasks include:

• Estimates of revenues and expenses for the year
• Expected cash flows
• Expected debt reduction
• Calculation of variances between planned and actual data.

Effective budgeting systems and processes allows monitoring the current financial status of the business day-by-day with actual data.

SCHNEIDER GROUP offers the following:
  • Collecting information on business plans and needs
  • Financial planning based on business information
  • Development of the budgeting system
  • Cash flow budgeting
  • Preparing of PL budget
  • Preparing of planned budget strategy
  • Plan vs. fact analysis of budgets
  • Analysis of differences and developing optimization

Financial controlling (complex service)

Financial control refers to the systems and processes that trace the resources of an organization with timely monitoring and measurement. These controls track financial compliance, monitor operations efficiency, match plans and budgets, and protect an organization’s physical and intangible resources.

Effective strategic financial control allows companies to allocate resources more efficiently, reduce unnecessary expenses, identify losses, and find new opportunities for growth.

Project financial controlling

Financial controlling can be applied to individual projects for companies with significant construction or project-based activity.

Clear and effective cost control systems and financial procedures, are preferable to ‘crisis management’ and allow team focus to remain on the most important areas of the project.

SCHNEIDER GROUP offers the following:
  • Project financial controlling
  • Control of statutory and management accounting
  • Payments, accounts receivable, and accounts payable management
  • Capital and non-current funds management
  • Effective strategic cash management
  • Budgeting
  • Adherence to budget limits
  • Plan vs fact analysis of budgets
  • Developing strategies for financial optimization
  • Compliance control processes

Tax planning (forecasts & optimization)

Tax planning is financial analysis from a tax perspective to ensure optimal use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions, and so forth available under local law.

In turn, it is important to work on the optimization of tax calculation, planning of cash flows and transactions for effective VAT flows, timing of income, size and timing of purchases, and planning for other expenditures. All of these processes have a significant impact on companies’ financial results.

With our tax planning and budgeting we take into account all taxes and duties, including VAT, profit tax, and payroll taxes to make necessary forecasts according to the companies’ planned activities.

SCHNEIDER GROUP offers the following:

  • Tax forecasts for different periods
  • Analysis and recommendations for maximizing tax efficiency

Financial analysis and monitoring of the financial position

Financial analysis is the process of evaluating businesses, projects, and budgets to determine their financial performance. When looking at a specific company, a financial analyst focuses on the income statement, balance sheet, and cash flow statement to determine whether an entity is stable, solvent, liquid, or profitable. Using current and historical data, they produce useful information about the present, past, and future financial health of the company.

This analysis informs decisions on process optimization, reallocation of resources, mergers and acquisitions, and financing. These operations directly and significantly affect the bottom line, and making well-informed financial decisions is a critical task for every business manager.

SCHNEIDER GROUP offers:
  • Express financial analysis with short review on results
  • Financial ratios groups analysis
  • Accounts receivable / payable analysis
  • Detailed financial analysis
  • Regular bankruptcy testing
  • Consulting on business financing options.

Control of foreign currency flows and currency risks analysis

Currency risk (exchange rate risk) refers to risk arising from the changing price of one currency compared to another. Exchange rate differences can increase the cost of liabilities in a foreign currency or decrease the value of assets, investments, and their related interest streams. This income and expenditure volatility can be damaging to companies or investors that possess funds, business operations, assets, or liabilities in foreign currency if their positions are not protected.

Companies have to analyze their transactions, assets, and liabilities in foreign currencies, assess currency rate volatility, analyze the impact on the financial result, and aim to eliminate any significant influence. After an analysis, a company can choose the best strategy or financial instruments to control this risk.

SCHNEIDER GROUP offers the following:
  • Analysis of cash flow in foreign currencies
  • Analysis of assets and liabilities in foreign currencies
  • Currency control compliance analysis
  • Review of accounting and tax correctness regarding foreign currency transactions
  • Development of measures to decrease exchange rate risk

IT Solutions for process automation

Financial awareness within an organization is an essential part of successfully running an enterprise. Implementing the right financial management software and tools has a significant positive impact and is paramount to ensure growth and goal-reaching.
Financial management tools have drastically evolved alongside the upswing in technological innovation. However, many companies do not realize how quickly technology has progressed and are not utilizing tools available that will give them the greatest advantage.

Financial management tools will continue to evolve and improve over time, which is why new technologies and financial platforms are so beneficial.
Staying at the cutting-edge of technology ensures entities are at the forefront of revenue growth and consumer experience improvement.

One of the biggest advantages for financial specialists is the variety of tools available to them. Technology has made their lives a lot smoother and enhanced their ability to make a positive impact on their companies. And though finance tools may individually add some value, financial teams and the company truly excel when they jointly use these tools.

SCHNEIDER GROUP offers:
  • Customer reminder system *
  • Aging accounts receivable/payable reports *
  • Modules for Management reporting
  • Mailing of reconciliation acts
  • EDI systems
    ‣ EDI with vendors/customers
    ‣ EDI with retailers
  • Development of tailor-made program tools for financial management
  • Complex solutions for financial management & budgeting (under development)
    ‣ Budgeting (structuring, approvals, plan-fact)
    ‣ Cash management & Treasury
    ‣ Accounts receivable/payable management
    ‣ Risk management for credits, currency rates
    ‣ Investment management, etc.
  • Business intelligent reporting (tools for data extraction from ERP / accounting) *

* Additional customizing / development may be required

Bank Selection

Along with choosing an optimal legal form, one of the most pressing issues facing foreign companies when entering the Russian market is the choice of a reliable bank that offers favorable conditions, services the current account, and processes financial transactions.

The choice of banks offering settlement and cash operations services is quite extensive. However, the choice in favor of a large banking structure with many years of experience in servicing international companies in various industries seems to be the most attractive. This makes it possible to carry out settlement operations easily and quickly, creating favorable conditions for business development in Russia.

In practice, companies are guided by the following main criteria when choosing a bank:

– Minimum number of days required to open a current account
– Number of branches in Russia
– Bank rating
– Availability of a personal manager with knowledge of the language
– Bank hours
– Possibility of signing a signature card in the client’s office
– Possibility of payment on the day of registration of the application
– Payroll project management
– Fees for carrying out operations

SCHNEIDER GROUP offers its clients a comprehensive analysis of settlement and cash service conditions in the largest banks in Russia, including detailed information on the timing of opening and maintenance of accounts, online banking, fees for transactions, and additional services.

Currency control

We offer software solutions to simplify the control of operations, as well as legal support in case of you need to challenge imposed sanctions on currency control operations. Our company also provides services for conducting checks of the accounting of controlled transactions in order to correct deficiencies in a timely fashion. For more information, click here.

Beyond the traditional accounting services (working with data, tax calculation, evaluation of business assets and liabilities, etc.), financial management focuses on efficiency and transparency and covers wider managerial, advisory, and analytical functions regarding cash, risks, assets, and liabilities.

On a daily basis, the management of a company makes dozens of decisions. The availability of usable, timely, accurate, and detailed financial information is the basis for effective and efficient managerial and strategic decision making.

When expanding into Russia and the CIS, financial controlling is often actively supported by the headquarters, as the coordination and financial processes within the Russian finance team are not yet fully developed or require specialists’ support. However, immediate reporting is required for headquarters’ operational purposes.

SCHNEIDER GROUP’s Financial Management Team assists the local team, whether CFO, financial controller, or accountants, in financial tasks and achieving strategic company goals. The functions of the CFO can be outsourced to a team of professionals from our company, or our knowledgeable and experienced Finance Team can cooperate with and support the development of your local financial team and communicate with your headquarters.

Other services, we offer in Russia:

Get in touch with us:
Daria Shelkova
Finance Director
+7 / 495 / 956 55 57
Ekaterina Lozhkova
Partner, Accounting, Financial Management, Moscow
+7 / 495 / 956 55 57