Improving the timely preparation and submission of management financial report

• Main Author: Cruz, Maria Gemma B.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Financial statements; Managerial accounting; Business enterprises—Finance; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/7052
• Institution: De La Salle University

Timeliness of the Financial Reports is vital in any organization as it provides shareholders information for their reference and decision making. Our private company is engaged in medical care (hospital services) and I serve as the Chief Finance Officer of the parent firm. This action research was conducted in our company and its subsidiaries to address the delay in submission of financial management reports by the subsidiaries to our parent company. Our team used the PDCA framework which guided us in carrying out specific interventions within two completed cycles of action research. In the first cycle, the interventions focused on the preparation of the list of tasks to be accomplished by the subsidiaries for the month end close, and the preparation of standard template of the financial report for improving the financial analysis and decision making. By completing the first cycle, the list of tasks was accomplished and a standard template for submission to parent company was provided to the subsidiaries. The list of tasks has a turn-around time (TAT) that serves as a guide for the subsidiaries to finish their task in closing the accounting books for the month. The standard management report template serves as their guide in the analysis of the financial performance of their entity. By following the list of tasks and putting it in the standard management report template, the subsidiaries were able to finish their financial statements and submitted them to the parent company earlier than usual, but not completely on time. In the second cycle, our team prepared a Monthly Financial Report Submission Tracker to show and keep track of the date of submission of each subsidiary. Through these interventions, our parent company was able to consolidate the financial reports in a timely manner and provided better analysis on how the financial performance can be improved through the standard management report template. Our team continued to improve the financial report submissions of the subsidiaries through collaboration with the company’s Group Chief Finance Officer (CFO) and other departments of the organization by all the Finance Leads.