Financial management

Financial management is one of the most important components in realizing the goals and ambitions of a company. It is the art of managing cash, finance, and assets of an enterprise within the framework of an accepted strategy. Money is the heart of business, and managing it sustainably is the ultimate determinant of a company’s long term success.

Our financial management services cover:

CFO Function

The CFO (chief financial officer) position 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 render 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. In the further course, our CFO carries on cooperating with the business according to your requirements and needs, whether financial or strategic.

Instead of hiring a full-time, in-house CFO, you can choose to outsource your needs to a part-time CFO. Or you can use our interim CFO function for the period when you are in search of 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 the services you actually need
• solve a number of finance-related issues in your daily activities

SCHNEIDER GROUP offers:

Complex CFO function outsourcing, including

  • Financial controlling
  • Tax planning
  • Financial analysis
  • Control of foreign currency flows and currency risk analysis
  • Other necessary strategic functions

Treasury and Cash Management

Corporate treasury function has always been important in making sure that a business has sufficient liquidity to meet its obligations, whilst managing payments, receipts and financial risks effectively. It is a complex function which also includes elements of accounts receivable and payable management in respect of planning payments and receipts. We support corporate treasury teams with planning and processing payments and related financial processes locally in Russia. We advise how to avoid cash shortage in daily operations, analyze cash flow and suggest ways for necessary financing.

Cash management is the corporate process of collecting and managing cash, as well as using it for short-term investing, if the owner is interested in investing. It is a key component of a company’s financial stability and solvency. As a rule, our cash management package includes cash flow budgeting and reporting with comparing the actual vs. planned data, planning and performing/initiating of payments according to the provided data by contracts, invoices, as well as approved budgets, planned taxes, etc.

SCHNEIDER GROUP offers:
  • Cash flow planning and budgeting (annual, quarterly, monthly, weekly)
  • Cash flow reporting (quarterly, monthly, weekly)
  • Planning of payments and preparing of payments calendars
  • Payments initiating & approval process organizing (regulations creation)Foreign currency cash management (conversion planning, planning of payments, etc.)
  • Deposits disposal (short-terms investing)
  • Analysis of credit instruments (overdraft, loans, etc)

Accounts receivable management

Accounts receivable (AR) management incorporates all to ensure timely payments of customers, closing by delivery of prepaid expenses, and aging of accounts receivable and monitoring of expiring dates. AR management covers also the monitoring of AR level within the general financial position of the company. Good receivables management helps prevent overdue payment or non-payment. It is therefore a quick and effective way to strengthen the company’s financial or liquidity position. Receivables management is crucial for companies and comes with certain benefits, provided a well arranged receivables process is in place.

Every company wants to buy low and sell high. But they can lose everything with poor receivables management during the last phase of the sales process (payment). Complex receivables management involves not only reminding customers to pay, analyzing of current receivables, it also includes the analyzing of reasons for non-payments or delays, and, ideally, the processes of the pre-checks for counterparties. This process is also necessary in regard to requirements and recommendations of the tax authorities.

Good receivables management directly contributes to a company’s profit because it reduces bad debt. The company also has a better cash flow and higher available liquidity available for investments or acquisitions. Furthermore, good receivables management boosts a company’s professional image.

SCHNEIDER GROUP offers:
  • Organizing of a process for customers pre-check*
  • Regular analysis of payment terms for accounts receivable
  • Accounts receivables aging control
  • Monitoring of statute of limitations expiring
  • Automation of processes for reminders
  • Regular active reconciliation (mailing out and monitoring of disputes resolution)
  • Bad debt provisions management
  • Collecting of documentation / contacts with counterparties
  • Analysis of accounts receivable level, calculation of marginal receivables
  • Detailed inventory of account receivable (one-time service)

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

Accounts payable management

Accounts payable are the amounts that are due to the suppliers of goods and services to the business. It is important for a firm to manage its accounts payable effectively. Best practices in accounts payable management can have quite a positive impact on a company’s profitability.

Effective accounts payable management can provide additional opportunities for a company to use its cash and make it profitable, while at the same time proofs the company to be a reliable customer or business partner. This trust could lead to discounts from suppliers which will positively impact profitability in the long run.

If the accounts payable are paid too early cash would be unnecessarily used but could have been utilized elsewhere (opportunity cost). However, if payments delay beyond the payment due date, it may spoil the relationship with the suppliers, which will lead to stricter credit terms in the future. Some suppliers may also charge interest if payments are made beyond due dates.

At the same time, effective allocation and diversion of funds due to strictly scheduled payments allow directing them on urgent needs, or short-term investing, and become, in fact, an additional source of non-expensive borrowing.

SCHNEIDER GROUP offers:
  • Accounts payable aging control
  • Regular analysis of payments terms for accounts payable
  • Monitoring of statute of limitations expiring
  • Arranging of timely payments initiating
  • Development of possible contracts payments terms
  • Regular active reconciliation (mailing out and monitoring of disputes resolution)
  • Control of advances received (terms for delivery, return)
  • Analysis of accounts payable level & structure
  • Detailed inventory of accounts payable (one-time service)

Financial planning & budgeting

Financial planning and budgeting lay the foundation for any effective business planning. Without a clear set of goals and objective and a financial plan that supports those goals, managing your day-to-day business is akin to driving your car while looking in the rear view mirror.

Financial plans and budgets can help the company be financially successful now and in the future. The two go hand-in-hand, but are not the same.

Creating a financial plan requires building a long-term strategy for getting the company and owners where they want to go, while building a budget means cash flow and/or income/costs management for the day-to-day.

A budget is an outline of expectations for what a company wants to achieve for a particular period, usually one year. One year is a standard period, but that’s not a hard-and-fast rule. For some companies, management may need to be flexible and allow the budget to be adjusted throughout the year as business conditions change.

Some of the characteristics of budgeting include:

• Estimates of revenues and expenses for the year
• Expected cash flows
• Expected debt reduction, if needed
• A budget is compared to actual results to calculate the variances between planned and actual data.

In turn, the effective budgeting system and processes for this one are very important for companies’ daily activities and their financial management. It allows monitoring the current status in cash and finance of business day-by-day, including due to regular reporting with actual data.

Budgeting represents a company’s financial position, cash flows and goals.

SCHNEIDER GROUP offers:
  • Collecting information on business plans and needs
  • Financial planning based on the business information
  • Development of the budgeting system
  • Cash flow budgeting
  • Preparing of PL budget
  • Preparing of planned BS
  • Plan vs fact analysis of budgets (BS, PL, cash flow)
  • Analysis of differences / development of measures for optimizing

Financial controlling (complex service)

Financial control has now become an essential part of any company’s finances.
Financial planning and financial controlling involve a combination of activities that support the entire financial management process for different companies.

Financial control refers to the system of processes implemented in place to trace the used resources of an organization with timely monitoring and measurement. These controls majorly track compliance with the financial and other processes of the company, monitor operations efficiency, match the plans and budgets, thereby protecting an organization’s physical and intangible resources, goals and financial results.

As part of their strategic management plan, organizations implement various strategies to allocate resources more efficiently and reduce unnecessary expenses. They also check their financial statements regularly to identify losses and find new opportunities for growth and expansion. Financial controls play a key role in these processes.

Project financial controlling
Financial controlling can be arranged in respect of projects for companies with significant construction and other project works.
Established and effective cost control systems and financial procedures, understood by both managers and members of the project team, entail less effort than ‘crisis management’ and will release management effort to other areas of the project.

SCHNEIDER GROUP offers:
  • Project financial controlling
  • Control of statutory and management accounting
  • Ensuring of payments management, accounts receivable & payable management
  • Ensuring of proper capital and non-current funds management
  • Ensuring of effective cash management in general
  • Budgeting
  • Control of sticking to budgets limits
  • Plan vs fact analysis of budgets (BS, PL, cash flow)
  • Development of measures for financial optimization.

* Financial controlling could also include compliance controlling processes, represented on the Legal Services page

Tax planning (forecasts & optimization)

In the current modern world companies have a number of tax obligations to state budget. Tax planning is a very important mission for each company. Within our financial planning and budgeting we should take into account all taxes and duties, including VAT, profit tax, payroll taxes, etc. and make necessary forecasts according to the planned companies’ activities.
In turn, it is important to work on the optimization of tax calculation, planning of cash flows and transactions for effective VAT flows, etc. All these processes provide an impact on financial result of companies.

As advanced services, tax planning includes such analysis from a tax perspective. The purpose of tax planning is to ensure tax efficiency by making optimal use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the statute.
Tax planning covers several considerations, which include timing of income, size, and timing of purchases, and planning for other expenditures.

SCHNEIDER GROUP offers:
  • Tax forecasts for different periods
  • Analysis & recommendations for planning in respect of tax efficiency

Financial analysis and monitoring of the financial position

Financial analysis is the process of evaluating businesses, projects, budgets and other finance-related entities to determine their performance and suitability. Financial analysis is an aspect of the overall business finance function that involves examining historical data to gain information about the current and future financial health of a company. Financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions.

Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid or profitable enough to monitor the financial position and to warrant a monetary investment when necessary.
When looking at a specific company, a financial analyst conducts analysis by focusing on the income statement, balance sheet, and cash flow statement.

This analysis may result in possible tactic decisions, decisions on measures for process optimizations, the reallocation of resources to or from a business or a specific internal operation, etc.
Financial analysis is one of the key tools needed by the managers of a business to examine how their organization is performing. For this reason, business managers are constantly querying their financial team about profitability, cash flows, and other financial aspects of their business.

SCHNEIDER GROUP offers:
  • Express financial analysis with short review on results
  • Financial ratios groups analysis (specific areas)
  • Accounts receivable / payable analysis
  • Detailed financial analysis
  • Bankruptcy test on regular basis
  • Consulting on options for business financing.

Control of foreign currency flows and currency risks analysis

Currency risk refers to a risk type arising from the changing price of one currency when compared to another. Whenever companies or investors possess funds and business operations, assets and liabilities stated in foreign currency, they experience currency risks if their positions are not protected. Currency risks are also referred to as exchange rate risks. Putting it simple, currency risks can be defined as the possibility of currency exchange rate differences, e.g. increasing of rates in case of liabilities in a foreign currency, or currency depreciation for assets, will have a negative impact on the value of assets, investments, and their related interest, financial result and dividend payment streams, etc.

Companies have to analyze their transactions, assets and liabilities in foreign currencies comparing their valuation dynamically due to currency rates volatiles, analyze the impact on the financial result aiming to eliminate the significant influence.

As a result of such analysis, a company can choose the way allowing controlling more or less, or decreasing such risks. A foreign exchange hedge is a method used by companies to eliminate or “hedge” their foreign exchange risk resulting from transactions in foreign currencies. Hedging is a way for a company to minimize or eliminate foreign exchange risks. There are several common types of financial instruments used for hedging. In turn, for many cases, companies can eliminate the currency risks by using natural hedging.

A natural hedge is the reduction in risk via exploiting the companies’ normal operating procedures. This can include receiving income in another currency while incurring expenses in that same currency, or making conversion to another target currency. A natural hedge does not require the use of sophisticated financial products (often provided by banks) but is still able to confidently decrease risks. However, most hedges (natural or otherwise) are imperfect, and usually do not eliminate risks completely.

SCHNEIDER GROUP offers:
  • Analysis of cash flow in foreign currency
  • Analysis of assets & liabilities in foreign currency
  • Currency control compliance analysis
  • Review of accounting and tax correctness in respect of transactions in currency
  • Development of measures for decreasing of exchange difference negative influence

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

Beyond the traditional accounting services, which is a necessary and effective measuring tool working with the actual proved data and covering also tax calculation function and evaluation of business assets and liabilities for reporting periods, the financial management of companies sets a new focus on the efficiency and transparency of companies. It covers wider managing, advisory and analytical functions in respect of cash, risks, assets and liability values.

Within daily activities, the management of a business has to face a number of issues associated with planning, decision making, analyzing and assessing of results, etc. The availability of operational, timely received, correctly presented and effectively analyzed financial information is the basis for management and strategic decision taking, as well as for efficient operational activities, and helps to solve the aforementioned issues on a daily basis.

Very often the financial controlling function is still 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 for processing the data, while the immediate reporting is required for headquarters’ operational purposes.

SCHNEIDER GROUP’s Financial Management Team assists the local team, be it the CFO, financial controller or the accountant, in financial tasks and achieving goals set by the company. As an alternative solution the function of the CFO can be outsourced to a team of professionals from our company, cooperating with corporate financial teams and supporting local managers. For either variant our Finance Team with its vast knowledge in different industries supports the development of your local financial function and the communication with your headquarters with best-practice examples.

Other services, we offer in Russia:

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