Ideal company - financial section

Financial section of an ideal company includes strategic financial plan, corporate budgeting system, a system of financial valuation models, financial KPI – both financial statements items and financial ratios, and corporate accounting systems for financial, cost and tax accounting.

Financial management system in an ideal company is based on a rock financial strategy, tightly integrated with all other corporate strategies. Financial strategy in an ideal company, obviously must perfectly match your KEF, your DCI, and your corporate vision and mission statements.

In an ideal 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 an ideal 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 (DCF) and shows in financial terms how the object in question generate the maximum amount of financial value.

In an ideal 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.

An ideal 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 an ideal company is maximized.

An ideal 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 an ideal company makes the necessary adjustments to make sure that its corporate accounting generates totally accurate and reliable financial data, eliminating the ‘BAAP effect’.

An ideal 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.

An ideal 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.