Various Elements of CFM

The various ways to reach to the Collaborated Financial Management are as follows:

INVESTOR RELATIONSHIP MANAGEMENT:
The Investor Relations blueprint describes the information exchange between an IR department and shareholders.

The investor relations assistant creates and updates the IR Websites on a regular basis. Interested shareholders, such as analysts and investors, browse through the Websites and look for the financial statements and the actual strategy.

• BUSINESS SCENARIO MAP
• INVESTMENT RELATIONSHIP MANAGEMENT TOOLS AND SOFTWARE

PLANNING AND BUDGETING:

Planning: The act of making a plan for the accomplishment of an objective.
Budgeting: Planning how much money you will spend on something.

KEY FEATURES

• Collaborative planning capability
• Powerful process and workflow management
• Integrated planning processes
• Planning process—planning, budgeting, forecasting and reporting
• Planning is often seen as burdensome and time- consuming
• New technologies and employ planning and forecasting best practices
• Time, reduce errors, promote enterprise-wide collaboration and foster a disciplined financial management culture that delivers true competitive advantage often accompanied by a leading or stable market position.
• Process Problems
• ERP Solutions
• Benefits
o Integrated End-to-End Solution
o Flexible and Robust Formula Methodologies

FINANCIAL SUPPLY CHAIN MANAGEMENT:
It is the whole process associated with flow of goods from manufacturer to end consumer. Supply Chain Management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed.
In the right quantities, to the right location, at the right time, in order to minimize total system cost to satisfy customer service requirements.

The two types of Supply Chian Management:
1. Physical Supply Chain Management
2. Financial Supply Chain Management

Three aspects of Financial supply chain management (FSCM)
1. Holistic and comprehensive planning and controlling of all financial processes which are relevant within a company and for communication with other enterprises
2. To increase the transparency and the level of automation of business processes along the financial value chain
3. To save processing costs and reduce the working capital of the company

Potential Areas of Development
1. Reducing significantly purchasing processing costs.
2. Accelerating payment and invoice reconciliation.
3. Reducing collections costs significantly and minimizing the number Days Sales Outstanding (DSO).
4. Enhancing visibility, which means less uncertainty in accounts receivable (A/R) and accounts payable (A/P) and a reduction in Working Capital needs.

TAX MANAGEMENT:

Tax Planning- A tax planning collaborative software can leverage compliance data already stored in the database to reduce data entry and handle state income tax planning with ease and efficiency.

Tax Process- provides new efficiencies which give time to focus on more important issues.

• Documents, information sharing made easy
• Inform management of their tax positions

Tax compliance- helps tax departments with domestic and international tax rules
compliance.

Introduction to CFM

Measuring profit today is highly challenging due to the nature of differing and complex transactions, involving costs that can be difficult to quantify. Teamwork, however, particularly where technology and accounting teams work together, can produce real results.

This is the process of planning, understanding, representing and analysing the budget and the profit involved in a particular project. This process is carried on in a collaborative fashion involving artists, technician, financer, marketer, etc. involved in a team.

In measuring financial performance and analysing the results it is sometimes not the raw data that is hard to identify and access – but the mechanism for presentation that requires much more effort than might seem to be the case at first glance.

Often technology is just the facilitator and delivery mechanism. Sometimes, however, new developments in technology help in the recognition of unforeseen benefits.