FINANCE & ACCOUNTING (F&A)
BUSINESS PROCESS OUTSOURCING (BPO)
Finance & Accounting (F&A) Business Process Outsourcing (BPO) is the outsourcing of finance related business processes to another firm. The business process being outsourced is interpretation & analysis of financial statement (analysis/financial planning & analysis).
INDUSTRIAL SERVICE
INTERPRETATION & ANALYSIS
OF
FINANCIAL STATEMENT
I- Types of the Industrial Service
The 4 types of the Industrial Service - Interpretation & Analysis of Financial Statement are:
â– Industrial Service - Methodology
â– Industrial Service - Software Transfer
â– Industrial Service - Original Template
â– Industrial Service - Co-Creation
1- Industrial Service - Methodology
This industrial service will involve transferring the methodology used by the customer to External.
2- Industrial Service - Software Transfer
The Industrial Service - Software Transfer will involve transferring the software used by the customer for financial statement analysis to the firm.
3- Industrial Service - Original Template
The ratios contained in the Industrial Service – Original Template are:
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1- Liquidity Ratio: Working capital, Current ratio, Acid-test ratio, Account receivable collection period, Number of days of sales in inventory & Operating cycle.
2- Leverage Ratio: Debt ratio, Equity ratio, Debt to equity ratio &Times interest earned ratio
3- Efficiency (Activity) Ratio: Asset turnover ratio & Cash conversion cycle
4- Profitability Ratio: Gross profit ratio, Operating profit ratio, Net profit ratio, Sales to total assets ratio, Return on total assets & Return on equity
5- Financial Structure: Debt to equity ratio
6- Market Measures: Earnings per share, Price-earnings ratio & Dividend yield ratio.
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Trend analysis in the Industrial Service – Original Template will involve using 2 analyses: 1- horizontal analysis & 2- vertical analysis.
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The 1st technique, horizontal analysis will involve using 2 methods to analysis the income statement & the balance sheet. The 1st method: Calculation of Percentage Changes From one or several years over the base year dollar amount will be used to analyzed the income statement & the 2nd method: Percentage Change Between two Years, will be used to analyze the income statement & the balance sheet.
The 2nd technique, vertical analysis will involve using: Total Assets, Total Liabilities & Total Equity as base amount for the balance sheet & Net Revenue (Net Sales) as base amount for the income statement.
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Included in the Industrial Service - Original Template are: Economic data, Industry Data & the Overall Analysis.
4- Industrial Service - Co-Creation
The contributor (customer) can enter the ratios & trend analyses desired, with the ability to withdraw ratios & trend analyses from the original template. The resulting list of ratio & trend analyses will constitute a co-created template that will be made by the initiator (External) & delivered to your firm.
II- The Business Process
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Below is an example of an organizational chart (SBU Structure) that involve a "Section of Financial Analysis" where the business process is made. The Section of Financial Analysis is within a Department of Financial Planning & Analysis.
Figure 1 - Section of Financial Analysis < Department of Financial Planning & Analysis < Corporate Finance (Organizational Chart: SBU Structure)
In order to start the process send an email "Hi" to the following
email address: externaltheenterprise@gmail.com, and the business process outsourcing process will be made with External, or send an RFI (Request for Information) or an RFP (Request for Proposal) directly to the same email address.
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- Payment: fiat money (bank transfer).
- Supply Chain (Channel):
Email (encrypted) or
Shipping (encrypted USB flash drive (digital) or printed (paper)).
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- Encryption AES-256:
Supercomputer: will take billions of years.
Quantum Computer: will require 6,600 logical, error-corrected qubits.
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