Professional Contacts

Business process is a number of logically connected repeated actions resulting in use of the enterprise’s resources for reprocessing the unit (physically or virtually) with a view to achieving specific measurable results or products in order to satisfy demands of internal or external consumers. In the event a company’s business processes are not built optimally, then each of the links of this chain will result in loss of resources (time, finances) and/or quality. 

As part of the service of “Arrangement and optimization of business processes”, our experts perform the following:

• carrying out high level review of an enterprise’s activity for identification of key business processes; assisting the Client in defining goals of improvement of business processes and their key success factors (assessment criteria of goal achievement of the business process being analyzed);
• describing key business processes and gathering additional information regarding them;
• analyzing business processes, determining “bottlenecks”. Basing on the gathered information, recommendations are developed aimed at their optimization, or arrangement of new business processes; executing the performed analysis in the form of a relevant document, describing the source information, analysis method used, its results (recommendations);
• taking decisions together with the Client regarding optimization of existing processes or implementation of new ones, assisting in performing required organizational changes and process readjustment (implementation), including personnel training.

Experience of IDelync’s experts as well as use of well-known and well-established methods of analysis, arrangement and optimization of business processes, allow to improve the enterprise’s quality of work through improvement of business processes, as well as prepare it for further automation.

Russian enterprises currently have to resolve contradictions determined by imperfection of structural relations. There is a high level of depreciation of equipment, lack of own sources of finance, credit inaccessibility  due to high price of their provision, low buying power holding back demand for manufactured products. In this situation, enterprises are looking for inner resources and optimize their use.

In these conditions, one of the leading issues is that of analysis of the potential of development of business products and services, which allows to effectively use both existing and new business products. IDelync’s experts provide assistance in resolving this issue and determination of managed factors influencing an enterprise’s activity, develop advice on their restructuring, improvement of the inner structure and management mechanism. At the same time management of potential is the decisive factor, which in many aspects determines the strategy and ways of an enterprise’s development.

Management accounting suggests automation of the following areas:

• Budgeting;
• IFRS accounting and reporting;
• IFRS consolidation;
• Analytical management reporting;
• Key indicators and Balanced Scorecard.

The information of operating accounting is the source of primary data for management accounting. This is the very reason why during automating management accounting, it is important not only to build a system of management reporting, but also connect it to the systems of operating accounting excluding the possibility of multiple entry of primary information into different systems. Taking into consideration the fact that nowadays most of Russian companies have solutions in automation of operating accounting based on 1C: Enterprise products, IDelync actively uses products of this family for automation of management accounting. This often  helps not only to set up integration mechanisms fast and in a quality manner, but also fully realize operating and management accounting of a company in a single information solution.

By studying a company’s needs carefully, IDelync’s experts offer variants of solutions for automation of management accounting both on the basis of typical solutions of 1C: Enterprise, and on the basis of proprietary solutions for budgeting and accounting in compliance with the international standards.

Realization of projects of comprehensive automation of management accounting is performed stepwise in the following sequence:

Stage 1. Pre-project examination (analysis).

The purpose of this stage is to indentify and agree with the key experts on business requirements to the system being developed, functionality of the solution and automation project results in general, work out proposals on selection of a platform and configuration for realization of the system. Special attention in development of the system of operative accounting is paid to the issues of potential use of the data of this system as a source for the future system of management accounting.

Stage 2. Preparation of the “Project vision” document.

On the basis of the pre-project examination, IDelync’s experts together with the Client’s key specialists prepare “The Project Vision” document. The purpose of this stage lies in formalization and recording the understanding of the main Project parameters aimed at comprehensive automation of operative accounting, achieved at this stage of examination.

Description of the following sections can be found in the “Project Vision” document:

• The structure of the Solution in terms and objects of the selected platform and configuration;
• The list and description of the realized functional of the Solution as well as deviations from the base performance capabilities of the selected configuration;
• The necessity and the level of integration of the proposed Solution with other information systems (Client-bank, Web-application, OLAP-reporting, etc.)
• Recommendations on provision of (optimization) required hardware and technical resources for optimal operation of the Solution.
• Stages, time-frames and budget of the Project’s realization.
  

Stage 3. Design, setup and adjustment of the information solution.

The following tasks are realized at this stage:

• Methodological adaptation of regulated processes, document flow and reporting;
• Designing changes in the information solution, their realization in the system;
• Setup and creation of a prototype for adjustment and checking of correct realization of accounting and reporting of the obtained solution;
• Initial fill of the information solution (fill of reference data, transfer of the original remainders).

Subsequent to the results of this stage, the information solution is formed on the basis of the selected typical configuration or IDelync’s own decision, adjusted to the needs of the enterprise, in accordance with the current requirements to automation, defined at the stage of Pre-project examination. The obtained information solution is handed over for beta testing.

Stage 4. Beta testing and user consultation.

The purpose of the stage of beta testing is full scale testing of the realized settings and performed adjustment of the information solution, with close support of a Consultant over the whole of the agreed period of time. At this stage the enterprise’s employees are maximally involved into work with the obtained information solution, receiving all required consulting support from the Consultant and learning the peculiarities of work of the information solution.

Stage 5. Productive operation of the information solution and post-project maintenance.

Upon successful completion of the stage of beta testing, an information solution is handed over to productive operation. The enterprise’s experts independently operate the information solution turn to the Consultant only when necessary.

The key to successful realization of an operative accounting automation Project is in the Project’s containing a full list of the Executor’s services: from assistance in realization of current requirements to comprehensive methodological support over the whole duration of the project. This is the reason why the project team from the side of the Executor must include experts in the area of IT, system analysis and financial analysis.

IDelync provides services of comprehensive automation of operative accounting of enterprises representing different kinds of business.

In this case operating accounting stands for accounting of the following business processes:

• Sales and CRM;
• Procurement;
• Services;
• Stocks;
• Production;
• Bookkeeping and tax accounting, regulated reporting;
• Treasury;
• Personnel and salary;

Executive services of a company require the data of operative accounting for carrying out current activities and timely solution of arising issues, and they are also the source for management accounting data. The information received as a result of operating accounting is processed, supplemented with necessary analytical cuts and is further transformed into aggregated data of management accounting.

Realization of projects of comprehensive automation of management accounting is performed stepwise in the following sequence:

Stage 1. Pre-project examination (analysis)

The purpose of this stage is to indentify and agree with the key experts on business requirements to the system being developed, functionality of the solution and automation project results in general, work out proposals on selection of a platform and configuration for realization of the system. Special attention in development of the system of operative accounting is paid to the issues of potential use of the data of this system as a source for the future system of management accounting.

Stage 2. Preparation of the “Project vision” document

On the basis of the pre-project examination, IDelync’s experts together with the Client’s key specialists prepare “The Project Vision” document. The purpose of this stage lies in formalization and recording the understanding of the main Project parameters aimed at comprehensive automation of operative accounting, achieved at this stage of examination.

Description of the following sections can be found in the “Project Vision” document:

• The structure of the Solution in terms and objects of the selected platform and configuration;
• The list and description of the realized functional of the Solution as well as deviations from the base performance capabilities of the selected configuration;
• The necessity and the level of integration of the proposed Solution with other information systems (Client-bank, Web-application, OLAP-reporting, etc.);
• Recommendations on provision of (optimization) required hardware and technical resources for optimal operation of the Solution.
• Stages, time-frames and budget of the Project’s realization.

Stage 3. Design, setup and adjustment of the information solution

The following tasks are realized at this stage:

• Methodological adaptation of regulated processes, document flow and reporting;
• Designing changes in the information solution, their realization in the system;
• Setup and creation of a prototype for adjustment and checking of correct realization of accounting and reporting of the obtained solution;
• Initial fill of the information solution (fill of reference data, transfer of the original remainders).

Subsequent to the results of this stage, the information solution is formed on the basis of the selected typical configuration or IDelync’s own decision, adjusted to the needs of the enterprise, in accordance with the current requirements to automation, defined at the stage of Pre-project examination. The obtained information solution is handed over for beta testing.

Stage 4. Beta testing and user consultation

The purpose of the stage of beta testing is full scale testing of the realized settings and performed adjustment of the information solution, with close support of a Consultant over the whole of the agreed period of time. At this stage the enterprise’s employees are maximally involved into work with the obtained information solution, receiving all required consulting support from the Consultant and learning the peculiarities of work of the information solution.

Stage 5. Productive operation of the information solution and post-project maintenance

Upon successful completion of the stage of beta testing, an information solution is handed over to productive operation. The enterprise’s experts independently operate the information solution turn to the Consultant only when necessary.

The key to successful realization of an operative accounting automation Project is in the Project’s containing a full list of the Executor’s services: from assistance in realization of current requirements to comprehensive methodological support over the whole duration of the project. This is the reason why the project team from the side of the Executor must include experts in the area of IT, system analysis and financial analysis.

Automation of the budgeting process with the use of the ID.Budgeting MIS ensures performance of the following tasks:

1. Drawing up the master budget of the company consisting of the income and expense budget, cash flow budget, payment schedule (operating plan of execution of the cash flow budget), pro forma balance sheet and other budgets. The drawing up of budgets may be performed in accordance with different scenarios on the basis of the target or actual data for the prior periods.
2. Planning of the monetary funding and controlling the financal condition of the enterprise for any period with a breakdown into turnover of individual items using the necessary analytical breakdowns.
3. Controlling the correspondence of the actual data with the set target indicators.
4. Controlling the correspondence of the current schedule of application of resources with the working schedule for the period and analysis of fulfillment of the budget requests.
5. Drawing up consolidated accounts based on the result of monitoring and multivariate analysis of deviations of the actual data from the target indicators.

Additional features of the “ID.Budgeting” MIS:

Integration of the data from the financial accounting information system with the MIS – the actual data of the budgetary accounting is integrated from the financial accounting information systems, which allows to avoid repeated information input.

The automated business process of “Change Management” provides feedback between the budget and the supporting primary accounting documents.

The control of execution of the budget can be performed virtually at any point of the business process of the enterprise. Five main points can be singed out, in which the execution of the budget can be checked and immediate actions aimed at prevention of deviations of the actual indicators from the target ones can be taken.

Reporting. Multipurpose settings of the reports allow to prepare any reports with arbitrary analytical breakdowns and with different level of itemization. Moreover, the use of the required analytical breakdowns allows to assess the efficiency of different business lines.  The plan-fact analysis can be built for each separate budget or a random list of items. This kind of report can be prepared on the basis of separate analytic objects: Centre of financial responsibility, contractor, etc, which allows to itemize the deviations.

Additional distribution procedures. It is not always possible to determine all the required analytics at the moment of posting of the actual dynamics of an item. Distribution into the preset algorithms is provided for this kind of cases. Distributed data is recorded under a different scenario, which allows to compare the data before and after the distribution.

The essential condition for the companies trying to attract foreign investment is preparation of IFRS reports. It is extremely important not just to obtain the reports, but rather make these reports an effective tool for analysis and support in taking management decisions.

Building the IFRS accounting model in the Company contains several stages:

• Developing the accounting policy of the Company. The accounting policy regulates all aspects of the technology of preparation of financial statements: the main components of the reports, choice of the reporting currency, description of the transformation technology from fully functional currencies (if they are used) into the reporting currency, requirements to preparation of forms of group reporting for the Group members, etc.
• Developing the Regulations on gathering and processing of information. This document assigns distribution of duties and the corporate regulations on gathering and processing of information during preparation and drawing up of statements.
• Choosing, setting up and implementing the tools for preparation of financial statements. At this stage, the Company has to establish which tools it will be using for preparation of the financial statements on time and with the required level of detail.

IDelync experts, using their own experience in preparation of financial statements as the basis, as well as their excellent knowledge of our clients’ requirements to these statements, have developed an automated solution for maintaining IFRS accounting and preparation of statements.

In contrast with the most widely spread model of maintaining the accounting in Excel, this solution gives the opportunity to immediately receive “decoded” information on the items of the statements and “submerge” to each transaction or posting (which is quite often required for analysis of the situation).

Thus, significant saving is achieved by means of completeness and substantiveness, timeliness and consistency of the automatically generated IFRS reports. This means that the specialist of financial service will be able to make analysis more effectively and take timely decisions.

On the whole the solution allows to:

• Automate processing of a greater amount of operations of the same type at the moment of transformation of RAS data into IFRS accounting (entry mapping), which allows to minimize the labour intensiveness of the IFRS accounting maintenance;
• Itemize the reporting data before the primary discount transaction, which makes the process of checking the  IFRS accounting data and collation of the RAS and IFRS data much easier;
• Maximally decrease the influence of the human factor onto the final result of transformation of accounting data due to automation and control of preparation of statements;
• Obtain the required analytical breakdown of the finalized statements.

The process of preparation of the consolidated financial statements in accordance with the requirements of the international standards by means of the “IFRS management accounting” solution includes the following stages:

• Gathering the data of prime records in accordance with the requirements of the Russian legislation and its transformation into IFRS prime records;
• Necessary alterations and missing primary information are added into the IFRS prime records obtained in the manner described above;
• The accounting data is consolidated and in the end, the consolidated statements are prepared.

The advantages of this Solution:

• The solution is implemented on the basis of 1C:Enterprise, which enables use of all the advantages of this platform: accessibility, scalability, open code.
• Functionality to use different information systems (1C, “Info-Buhgalter”, “Turbo-Buhgalter”, “Parus”) as information systems which are primary information sources.
• The functional of the system allows to set up accounting in compliance with the IFRS principles regarding “Property, Plant and Equipment”, intangible assets, inventories, which significantly simplifies the procedure of making adjustments (depreciation calculation, asset revaluation, accrual of reserves) with respect to these accounting entities.
• The flexible system of set up of templates of financial statements and data unload into Excel accounting. There is a dedicated directory of elements of financial statements, in which the statements structure and the information source for each item of the statement are specified. On the basis of the specified structure, an Excel report template is generated automatically and it is further automatically filled in with the Solution data.
• Roll-out of the values of the reports into consolidation tables is provided for by the mechanism of the Solution, which allows to obtain different management reports on the basis of the consolidation tables.
• Functionality to single out the intracompany balance and prepare consolidated group statements.

The final solution and the terms of IFRS accounting automation are exclusively individual for each company. IDelync pays special attention to organization of works for preparation of the Company for the implementation, staff recruitment and training. In the course of implementation, operating and management processes in the company, document flow and financial accounting are analyzed, as well as the existing and operating information systems and technologies. The management system, put into the basis of the organization of the project works, intended for development process and implementation of complex systems and Rational Unified Process software, allows to integrate different software into a unified integrated MIS and obtain IFRS statements of adequate quality.

Significant practical experience of IDelync experts in synergy with the theoretical knowledge, allow to find adequate alternative solutions for creating an IFRS accounting system for any one occasion.