The 9-step Guide to Reduce a CFO’s year-end hassle

1. The 9-step Guide to Reduce a CFO’s year-end hassle

2. Content • Appoint an audit coordinator • Finalizing the draft of Annual Report well before the deadline • Time your adjustments accordingly • Calculating the added value in inventory • Functional Fixed Asset Register • Know the Importance of Internal Auditors • Prompt Management Letters • Derive more value from the Interim Audit • Prevent Staff Burnout • Conclusion • Contact

3. Appoint an audit coordinator • The first and foremost step to ensure no lags in communication and timely delivery is to appoint an audit coordinator. • The focussed role of the Audit Coordinator is to manage the whole audit process and coordinate both (interim and final) visits with the audit team and should not be assigned any other tasks. • The person may not be particularly from Finance team but should be aware of the dynamics of the company. Usually, you may find the ideal person in the accounts payable team (PS, they’re more popular than the CFOs) or someone with strong interpersonal and management skills.

4. Finalizing the draft of Annual Report well before the deadline

5. Time your adjustments accordingly • Irrespective of however automated your processes are, every organization passes adjustment entries during the quarter and year-end.  • While we understand it’s a hustle period and the accountants are in a hurry to reconcile balances, as a senior leader you must make sure that your finance team keeps a track of those adjustments i.e., the date, the nature and amount. • This will make it easier for the auditors to trace those adjustments leading to minimal back and forth with the finance team.

6. Calculating the added value in inventory • It is advisable that stock count is done as a continuous process rather than just a periodic activity (i.e., quarter end or year-end). • It is better to practice a Rolling stock count (throughout the year) and keep the books updated accordingly. • One of the most time-consuming activities in an audit is to estimate the value of inventory. In the absence of a definite number, auditors tend to follow a conservative approach which may not always be a favourable position for the company. • Which is why it is better to calculate the value addition at different stages of inventory (Work-in-progress, Finished goods) which could save hours of audit time.

7. Functional Fixed Asset Register

8. Know the Importance of Internal Auditors

9. Prompt Management Letters

10. Derive more value from the Interim Audit

11. Prevent Staff Burnout

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13. Contact • Website : https://contetra.com/diploma-in-ifrs-training/ • Email ID : Tejas.savla@contetra.com • Phone No : 9833818857