FINANCIAL FLOWS RECONCILIATION WITH FINDAP: METHODOLOGICAL APPROACH

KEY ELEMENTS

1. FINANCIAL DATA SETS
   • 👉🏽👉🏽 Set of items: from different categories (long term assets, raw materials ; semi finished products ; finished products ; services)
   • 👉🏽👉🏽 Set of Suppliers
   • 👉🏽👉🏽 Set of Clients
   • 👉🏽👉🏽 Set of invoices: invoices from suppliers & invoices to clients


2. FINANCIAL FLOWS
   • 👉🏽👉🏽 Flows of items (inventory flows): a flow of item is at minimum given/determined by a set of the following 6 characteristics
     • Item ID (or unique name)
     • Flow/transaction date
     • Quantity
     • Unit price
     • Way (origin and destination of concerned item)
     • Invoice ID
   • 👉🏽👉🏽 Flows of cash: a flow of cash is at minimum given/determined by a set of the following 5 characteristics
     • Flow/transaction date
     • Amount
     • Currency
     • Way
     • Counterpart ID

KEY TASKS

• FINANCIAL RECONCILIATION
  Financial reconciliation is done to establish a connection/relationship between a given flow (of item or of cash) with a unique element of financial Sets
  
  • 👉🏽👉🏽 Reconciliation invoice - supplier: is automatically given in purchases invoices details or WHT declaration details
  • 👉🏽👉🏽 Reconciliation invoice - client: is automatically given in Sales invoices details
  • 👉🏽👉🏽 Reconciliation payment/CASHIN - supplier: needs to be done for each inflow that appears on Bank/Momo/Cashbook statements
  • 👉🏽👉🏽 Reconciliation payment/CASHOUT - client: needs to be done for each outflow that appears on Bank/Momo/Cashbook statements

One needs to check regularly (on a daily or at least weekly basis) to make sure that following key tasks are properly & electronically recorded (preferably in better structured Excel files --templates can be provided, if necessary--):

1. recording of flows of items/inventory flows (element 2.1)
2. identification of cashflows (elements 3.3 & 3.4)

Once this monitoring task is well established and properly performed, all financial data can be very easily processed in an automated way to produce financial analysis & reports at any time in a very short amount of time, whatever the amount of data that needs to be processed.