Financial Planning and Analysis

BI systems help banks operate in an environment of risk, competition and heavy regulation. With analytics, banks determine a development strategy, schedule their operations appropriately, set priorities, evaluate operational efficiency and allocate resources based on the objectives and strategy of the bank.

In addition, BI systems help the bank analyze its strengths and weaknesses, find opportunities to generate more revenue and reduce costs, and plan investments in various areas of activity. Take a look at our project on implementation of a budgeting system for a commercial bank.

Our BI systems help banks operate efficiently in the face of the following factors:

• Dealing with Interest Rates: Banks can make allowance for changing interest rates for various types of transactions, for example, lending and deposit sourcing.
• Loan Portfolio: Banks can plan income and expenditure for the loan portfolio, taking into account potential losses from loan defaults.
• Risk Management: Banks can plan their operations taking into account various types of risks, for example, credit risk, transaction risk and reputational risk. BI systems help to properly plan reserves for possible losses associated with risks.
• Statutory Regulation: Accounting for potential costs of compliance with laws and regulations. For example, our project to optimize the balance sheet and comply with IFRS requirements.
• Competition: Accounting for marketing and advertising costs to attract new customers and retain existing ones.
• Adoption Of Technology: Cost accounting for the development and deployment of new technologies, and for staff training.

CASE STUDY

Hi-Tech company’s operations are associated with a high level of innovation, high costs for equipment and technology, research and development, rapid development, etc.

BI systems help companies address the following challenges:

• High R&D Costs: The company can correctly calculate the costs of research and development and remain competitive in the market.
• Short Product Development Cycles: The company gets the opportunity to quickly review budgets and respond to changes in technologies and markets.
• Uncertain Markets and Unpredictable Semand: Business chooses the best approach to budgeting for it.
• Need for Rapid Commercialization: Business accounts for marketing costs and can bring the product to market quickly.
• Investment in Human Capital: HR department accounts for the costs of staff development, engaging new specialists, incentivization and retaining talented employees.
• High Equipment and Technology Costs: The company can plan the cost of updating equipment and technologies.
• Intellectual Property Accounting: Business accounts for the costs of defending patents and other intellectual rights.

CASE STUDY

BI systems address the following tasks:

• Infrastructure Cost Management: Companies have to invest heavily in infrastructure such as communications networks and equipment. When budgeting, it is necessary to take into account the costs of purchasing, installing and maintaining equipment, as well as labor and other costs.
• Planning Of Marketing Expenses: Accounting for marketing expenses: cost of advertising, promotions, development of products and services, research and development of new markets and technologies.
• Operating Expenses Management: Accounting for labor costs, taxes, insurance, technical support and other costs.
• Revenue Forecasting: Accounting for prices of products and services, sales volumes, demand forecasts and other factors that may affect revenues.
• Financial Risk Management: Risk accounting (changes in exchange rates, interest rates, inflation, etc.) and taking measures to manage them: financial hedging tools and investment diversification.
• Investment Forecasting: Forecasting the amount of investments and estimation of their payback periods.
• Management of Taxes and Financial Statements: Accounting for tax consequences and taking measures to reduce tax liabilities, for example, through the use of tax incentives and exemptions.
• Security Risk Management: Security cost accounting: protection of personal data, protection against cyber attacks and other threats.
• Investor Relations Management: Cost accounting for investor relations: arrangement of investor conferences and reporting of financial performance.
• Investment Project Management: Assessment of return on investments and risk management associated with investments.
• Compliance with Regulatory Requirements: Accounting for the costs of compliance with the requirements of regulators and taking measures to meet them.
• Technology Shift Prediction: Accounting for the costs of introducing new technologies and their impact on company revenues.
• Capital Management: Accounting for capital expenditures, capital increase costs, expected returns and risks.

BI systems allow managing finances in industrial production in a reliable manner. Solutions help businesses operate with due regard for:

• Complexity of The Production Process: When planning finances, accounting for all stages of production, from the purchase of raw materials and materials to the production of finished products.
• Significant Capital Investments: Accounting for investments in equipment, machines, technologies, buildings, etc. and their distribution over a long period of time.
• Seasonal Production Variability: Taking into account the seasonality of the production cycle and planning financial costs for the whole year.
• Need for Continuous Operational Excellence: Taking into account possible adjustments to production plans and quick response to changes in the market environment.
• Need to Comply With Quality And Safety Standards: Cost accounting for compliance with quality and safety standards, including inspections and audits.
• Need to Account for Energy Expenditures: Accounting for the costs of electricity, gas, fuel, water and their optimization to reduce costs.

CASE STUDY

• Seasonal Patterns: Accounting for fluctuations in seasonal demand, forecasting sales for each month or quarter.
• Stock Management: Accounting for the cost of purchasing goods and monitoring stocks to avoid unnecessary costs.
• Personnel Management: Accounting for salaries, bonuses and other payments related to personnel.
• Marketing and Advertising: Accounting for advertising, sales events, discounts and other marketing activities to attract customers.
• Rental and Maintenance of Premises: Accounting for rental and maintenance costs of premises, such as utilities, repairs and maintenance.
• Information Technology: Cost accounting for IT infrastructure, software and staff training in order to more effectively manage the business and meet customer needs.
• Competition: Identification of competitive advantages and weaknesses, as well as forecasting potential changes in the market environment.
• Customer Base: Accounting for customer retention costs, loyalty programs and market research to attract new customers.
• Data Analysis: Cost accounting for data analysis (sales, inventory, customer base) and planning investments in management systems to improve business efficiency.
• Risk Management: Accounting for possible risks, for example, losses from theft, non-compliance with safety rules, failures in IT systems, and planning the costs of managing and mitigating them.