Analysis of Financial Time Series
Olivier Kumar (奧利弗~庫馬爾)
Olivier Kumar (奧利弗~庫馬爾) is leadership in general business management. His achievements include the areas of outsourcing management, corporate finance, and investment diversification.
As a key user of financial statements, he had identified some weaknesses of ERP and accounting software during his past employments. It mainly attributed to the implementation of software which cannot support formula base query function to facilitate end-users designing different kinds of time series financial statements with the capability to handle year-to-date balances of assets and liabilities.
- Outsourcing Management: completed a restructuring exercise of a logistics business from mainly on asset-based carrier to supply chain solution provider
- Corporate Finance: successfully to recruit strategic investors for a retail group which contributed to a pre-IPO preparation work
- Investment Diversification: re-balancing property asset portfolio of a global hotel group, to build up a diversified portfolio of investment properties by disposal some under-performing hotels
Olivier Kumar @ Logistics Group
The logistics group manages a supply chain consulting services helping customers to reduce total cost of logistics e.g. optimising routes, carrier rates, and tariffs. Consulting services are charging on time cost basis with ceiling per each project. Billing operations are responsible by Finance Department using a custom-made accounting software. The accounting software is customised to support interface with time sheet data (time sheet data exported from a custom-made staff attendance software) for generation of all relevant vouchers.
Finance staff is frequently using Excel Pivot Table and Excel Formula Vlookup to prepare rolling 36-month financial statements for management based on a mass volume of vouchers exported from their accounting software. This support management to review the logistics business trend and identify any abnormal account balance e.g. staff attendance and related cost allocation.
Using the Excel functions to prepare Financial Statements in fact which can provide relevant analysis information for monthly Profit and Loss Account. However, it is misleading to the management in which all Assets, Liabilities, and Equities are reported by each monthly total movement for all accounts, rather than monthly year-to-date closing balance.
Olivier Kumar @ Retail Group
The retail group has over 200 branches located in different locations within an economic region. Each branch has operated a POS software which covers sales, purchase, inventory and general ledger. Multi-dimensional double entry vouchers are generated on a real-time basis in respect of sales, purchase, and inventory. For any non-trade business activity, finance staff is required to prepare vouchers manually using an accounting software. Both POS software and accounting software has built-in a report writer to support generating financial statements.
Key concerns of using the POS and Accounting software is mainly due to the long lead time to effect any amendment of financial statement layout. Also, two software are separated from each other, this mean accounting for trade activities are separated from accounting for non-trade activities.
Top management from time to time requests to implement an end-user reporting tool without affect the existing software. The project delay due to either cost concerns or complexity of software involving automation of consolidated financial statements for different grouping of branch, company and product line. Most common consolidation systems are mainly support using trial balance as a data import template, but most of the finance users of the group cannot accept this because voucher entries which contain important audit trial to support meaningful drill down enquiry function.
Olivier Kumar @ Property Investment Group
The property investment group invests and manages a portfolio of properties for operating a leasing business. Before software selection of an ERP which specialises in property investment sector, the top management had a preference of selection criteria including the top 3 priorities as follows: –
- Customer Relationship Management
- Rental Billing and Collection
- Property & Facility Management
The selection and implementation of the ERP are proven successful to meet the top 3 priorities. However, there is a long lead time for the preparation of full set of time series financial statements with notes to accounts when the presentation of financial reports is changed very frequently. The key issue of the ERP is designed for operating business rather than operating accounting. The software does not offer formula base reporting tool to support ever changing of financial reports.
To adapt the change of financial reports, the CFO decided to implement a very popular Business Intelligence software – which offers very attractive drag and drop function with graphical presentation. It is proven the new reporting tool can build a lot of fancy dashboards, but remain very weakness to deal with YTD Balances and numerical base reports – full set of time-series financial statements with notes to accounts.