Portrait of a Happy Company - Financial Section

Financial management system in a happy company is based on a rock-solid financial strategy, tightly integrated with all other corporate strategies. Financial strategy in a happy company, obviously perfectly matches its KEF, DCI, your corporate vision and mission statements.

In a happy company, a strategic financial plan is a financial valuation model for the entire business entity. It is based on a rock-solid financial valuation methodology (DCF) and shows in financial terms how the company will achieve its strategic financial objectives. First and foremost, generate the maximum amount of financial value.

In a happy company, every corporate object (brand, product, target market, corporate tool, etc.), process and project has its very own financial valuation model. It is based on a rock-solid financial valuation methodology (Discounted Cash Flows - DCF) and shows in financial terms how the object in question generates the maximum amount of financial value.

In a happy company, corporate budgeting system is based on financial valuation models for the whole company, corporate objects and processes. And thus presents a complementary view of how exactly financial value is generated in a business entity.

A happy company achieves optimal values of its key financial performance indicators (KPI) – on balance sheet, income statement, statement of retained earnings, and statement of cash flows – as well as financial ratios. These values are optimized in such a way that the financial value of a happy company is maximized.

A happy company develops and deploys a highly efficient financial accounting system based on the chosen accounting standards – GAAP or IFRS. However, the financial accounting system in a happy company makes the necessary adjustments to make sure that its corporate accounting generates totally accurate and reliable financial data, eliminating the ‘BAAP effect’ (‘barely acceptable accounting principles’).

A happy company develops and deploys a highly efficient cost accounting system based on appropriate methodologies. This system ensures that corporate costs are allocated to corporate objects and processes in a correct and natural way.

A happy company develops and deploys a highly efficient tax accounting system that ensures that the company minimizes its tax burden (and, therefore, maximizes its financial value) at the same time staying out of legal trouble with tax authorities.