Financial Processes and Systems Impact 9.2

• Why are financial processes important?


  They help organizations manage financial resources, maintain accuracy in financial records, and comply with regulations.
• What are the goals of financial processes?


  To ensure accurate recording, analysis, reporting, and monitoring of financial transactions and compliance with regulations.
• What is a financial process?


  A systematic set of activities, procedures, and workflows that organizations implement to manage their financial resources effectively.
• What is the finance industry?


  An industry that includes businesses and institutions that manage money.
• What are financial services?


  A wide range of economic services provided by the finance industry, including businesses and institutions that manage money.
• What are insurance services?

  Risk management solutions to protect against financial losses.
• What are banking services?

  Services that include deposit-taking, lending, and account management offered by banks, credit unions, and savings institutions.
• What are investment services?


  Assistance with wealth creation and management through investments.
• What are payment and settlement services?


  Services that facilitate transactions and monetary transfers.
• What are financial advisory services?


  Guidance on managing finances, including tax planning, estate planning, and budgeting.
• What are capital markets and brokerage services?


  Services related to the buying and selling of securities and other financial instruments.
• What is the purpose of Accounts Receivable (AR)?


  To maintain cash flow by ensuring timely collection of revenue
• What are the key steps in the Accounts Receivable (AR) process?


  Generating and sending invoices, monitoring payments received, and following up on overdue accounts.
• What is Accounts Receivable (AR)?


  The process of managing money owed by customers or clients for goods or services delivered.
• What is the purpose of Accounts Payable (AP)?


  To ensure timely payments while avoiding errors or fraud.
• What are the key steps in the Accounts Payable (AP) process?


  Receiving and verifying invoices, approving payments, and issuing payments to vendors.
• What is Accounts Payable (AP)?

  Short term liability that businesses use to track and manage outstanding payments owed to suppliers/vendors
• What is budgeting and forecasting?


  The process of planning and predicting future financial performance.
• What are the key steps in budgeting and forecasting?


  Setting financial goals, allocating resources, and using historical data to forecast revenue and expenses.
• What is the purpose of budgeting and forecasting?


  To provide a financial roadmap and aid in strategic decision-making.
• What is payroll processing?

  Managing employee compensation, including salaries, benefits, and deductions.
• What are the key steps in payroll processing?


  Calculating wages, deducting taxes and contributions, and disbursing payments to employees.
• What is the purpose of payroll processing?


  To ensure timely and accurate employee payments while complying with regulations.
• What is financial reporting?

  The preparation and presentation of financial data for stakeholders.
• What are the key steps in financial reporting?


  Compiling financial statements, auditing financial data, and filing reports with regulatory bodies.
• What is the purpose of financial reporting?


  To provide transparency, support decision-making, and ensure compliance.
• What is tax management?


  Calculating, filing, and paying taxes in compliance with legal requirements.
• What are the key steps in tax management?

  Identifying taxable income, calculating various taxes, and filing returns with authorities.
• What is the purpose of tax management?


  To avoid penalties and ensure legal compliance.
• What is procurement and vendor management?


  Managing purchasing activities and supplier relationships.
• What are the key steps in procurement and vendor management?


  Identifying procurement needs, evaluating suppliers, and monitoring and paying vendors.
• What is the purpose of procurement and vendor management?


  To reduce costs, ensure quality, and streamline supply chains.
• What is audit and compliance?


  Reviewing financial processes to ensure accuracy and adherence to laws and policies.
• What are the key steps in audit and compliance?


  Conducting internal audits to review controls and external audits to verify compliance.
• What is the purpose of audit and compliance?


  To detect discrepancies and maintain organizational credibility.
• What is Accounts Payable and Receivable automation?


  The use of automated systems to streamline invoice management, payment scheduling, reconciliation, and payment reminders.
• What are the key features of Accounts Payable and Receivable automation?


  • Invoice management with OCR,
  • payment scheduling,
  • reconciliation of invoices, purchase orders, and delivery receipts,
  • payment reminders for receivables.
• What are the benefits of Accounts Payable and Receivable automation?

  • Increased efficiency,
  • cost savings,
  • enhanced transparency,
  • improved compliance with tax regulations and audit requirements.
• What is supplier onboarding?


  The process of registering and verifying suppliers, including document submission, compliance checks, and risk assessments.
• What are the key features of supplier onboarding?


  • Digital forms for document submission,
  • automated verification of tax IDs and bank details,
  • risk assessment tools,
  • approval workflows