Total cost to perform the finance function per finance function FTE

This measure calculates the total cost per finance function full-time equivalent (FTE) employee to perform the finance function, which involves financial strategy and planning, investment management, tax funding and treasury, profitability and cost management, revenue cycle, accounts payable and expense reimbursements, payroll, general accounting and reporting, fixed asset management, and internal audit. The total cost is the sum of outsourced, overhead, personnel, system, and other costs. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "manage financial resources."

Benchmark Data


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Measure Category:
Cost Effectiveness
Measure ID:
Total Sample Size:
4,361 All Companies
25th Median 75th
- - -
Key Performance Indicator:

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Compute this Measure

Units for this measure are dollars.

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Total cost to perform the function "manage financial resources" / Number of FTEs who perform the function "manage financial resources"

Key Terms

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Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (6.0.0)

  • 8.1 - Perform planning and management accounting (10728) - Determining different stages of the planning process and accounting. Classify, determine, analyze, interpret, and communicate information to make up-to-date business decisions for better management and control functions.
    • 8.1.1 - Perform planning/budgeting/forecasting (10738) - Allocating funds to meet future and current financial goals. Led by the chief financial officer, have the finance function plan, budget, and forecast in order to determine and describe long and short-term financial goals.
      • - Develop and maintain budget policies and procedures (10771) - Formulating financial budgetary guidelines and strategies. Develop a framework for rules and regulations regarding budgets. Create a step-by-step process to achieve financial goals.
      • - Prepare periodic budgets and plans (10772) - Creating reports on a quarterly or annual basis for fund allocation. Create a financial statement that estimates revenues and expenses over a specific period of time. (Leverage budget methods such as cost-based and zero-based budgeting techniques, in light of the periodic targets outlined during Develop and maintain budget policies and procedures [10771].)
      • - Prepare periodic financial forecasts (10773) - Creating estimates of the projected income and expenses required over a predetermined time frame. Develop the projections of profit and loss statements, balance sheets, and the cash flow forecast.
    • 8.1.2 - Perform cost accounting and control (10739) - Defining costs to be incurred and methods for optimum utilization. Determine the costs of products, processes, projects, etc. to compile in the financial statements, as well as to assist management in making decisions regarding planning and control. Control costs by managing and reducing business expenses.
      • - Perform inventory accounting (10774) - Conducting accounting for assets, and finding reasons for changes (depreciation, obsolescence, deterioration, change in customer taste, increased demand, decreased market supply, etc.).
      • - Perform cost of sales analysis (10775) - Studying expenses directly associated with product. Analyze the cost of sales, which is the cost of manufacturing products.
      • - Perform product costing (10776) - Studying and finding out the relevant cost center for a product by studying every resource used in its making.
      • - Perform variance analysis (10777) - Discovering the changes between forecasted and actual costing. Analyze actual and planned behavior by reviewing the amount of a variance on a trend line in order to maintain control over a business.
      • - Report on profitability (11175) - Making a report about revenues generated by the organization or business unit concerned. This process requires the organization to create a report which shows how business is generating profits. Profits are the part which is left after paying all expenses directly related to the generation of the revenue, such as producing a product, and other expenses related to conducting business activities.
    • 8.1.3 - Perform cost management (10740) - Deciding which expenses can be avoided to reduce some costs and increase revenues. Plan and control the organization's budget to forecast future expenditures.
      • - Determine key cost drivers (10778) - Defining cost drivers for a particular activity.
      • - Measure cost drivers (10779) - Calculating cost drivers.
      • - Determine critical activities (10780) - Determine the activities that hinder the progress of finance activities. This requires the organization to determine those business activities carried out by the financial function of the organization and which are indispensable. This undertaking helps the organization triangulate those activities which are essential and where costs cannot be slashed.
      • - Manage asset resource deployment and utilization (10781) - Distributing or allocating asset resources in different processes for optimal utilization.
    • 8.1.4 - Evaluate and manage financial performance (10741) - Checking and achieving predetermined financial targets and timelines. Assess and manage the profitability, feasibility, and consistency of a business or project. Study the revenues generated.
      • - Assess customer and product profitability (10782) - Studying product demand and targeted customer preferences. Study customers' demands or preferences after deducting the cost of delivering the final product.
      • - Evaluate new products (10783) - Checking demand about a specific product by a customer segment. Conduct a detailed study--or research a customer behavior or preference for a product--in order to determine its production and profitability in a specific market.
      • - Perform life cycle costing (10784) - Determining the cost of delivering an end product at different stages of production. Study the total life cycle of a product/process to determine how much revenue and production cost will be incurred at every stage in order to make strategic decisions.
      • - Optimize customer and product mix (10785) - Creating the best fit between a product and the end user. Maximize the customer base by providing different products in the market.
      • - Track performance of new-customer and product strategies (10786) - Observing the behavior of a new set of customers for different products. Prepare strategies to improve sales and profits.
      • - Prepare activity-based performance measures (10787) - Evaluating performance based on different sets of activities created by management to measure performance.
      • - Manage continuous cost improvement (10788) - Conducting activities to improve cost distribution regularly. Follow or adopt different ways of reducing costs.
  • 8.2 - Perform revenue accounting (10729) - Comparing revenue targets to reality. Review all transactions and entries passed in final accounts in a year in order to examine profits.
    • 8.2.1 - Process customer credit (10742) - Evaluating and processing requests for advances. Evaluate credit requests by customers requiring loans to buy products/services.
      • - Establish credit policies (10789) - Creating guidelines for providing advances. Set up credit standards, credit terms, and collection policies.
      • - Analyze/Approve new account applications (10790) - Checking and accepting new requests based on eligibility criteria. Analyze the status of applicants and requirements to be met for a new account.
      • - Review existing accounts (10791) - Evaluating existing account holders and their past performance. Regularly review existing accounts to get the required information about the status at present.
      • - Produce credit/collection reports (10792) - Preparing account payable reports about payments to be made according to accounting rules and principles, and providing the reports to management.
      • - Reinstate or suspend accounts based on credit policies (10793) - Closing or restarting accounts according to changes made in credit policies.
    • 8.2.2 - Invoice customer (10743) - Preparing detailed reports of customer purchases. Prepare a commercial document between the seller and customer with details about transaction. Detail the quantity purchased, price of products/services, date, parties involved, unique invoice number, and tax information.
      • - Maintain customer/product master files (10794) - Creating and updating a record of customers and the products being purchased by them in a database. This process element requires the organization to maintain a database of customers and their purchases. Such a master-file can be used to ensure customer touch point, enhance customer satisfaction, explore cross selling opportunities, and identify future trends. This database will include several particulars about the personal details of the organization's customers and a tracking of the products being sold.
      • - Generate customer billing data (10795) - Preparing detailed reports about products purchased by customers. Record and generate a detail account of transactions made by customers fat a particular time and location. Include all details about products such as price, quantity, and name.
      • - Transmit billing data to customers (10796) - Providing information to customers about purchases made by them. Communicate the details of purchases. Provide customers with a copy of details for their reference.
      • - Post receivable entries (10797) - Registering transactions and their scheduled payments.
      • - Resolve customer billing inquiries (10798) - Checking and solving billing queries raised by customers.
    • 8.2.3 - Process accounts receivable (AR) (10744) - Processing payments due from customers. This includes all processing of funds received, whether by check or electronically. This does not include the generation of invoices.
      • - Establish AR policies (10799) - Creating rules and regulations to be followed in case of credit sales to customers. Create rules and procedures to follow at the time of sale (e.g., the allowable number of installments).
      • - Receive/Deposit customer payments (10800) - Collecting cash from customers. Deposit it into bank account. Make entries into the books of accounts.
      • - Apply cash remittances (10801) - Checking and moving funds between countries for business activities, typically through authorized remittance agents.
      • - Prepare AR reports (10802) - Preparing reports that detail balances due or what to collect from customers at a certain point in time.
      • - Post AR activity to the general ledger (10803) - Preparing the general ledger for account receivables from journals. Place all journal entries related to accounts receivables in the general ledger accounts of a business.
    • 8.2.4 - Manage and process collections (10745) - Posting entries to respective accounts, and preparing accounts for receivables. Manage the cash collected by the business from its debtors. Record it in the books of accounts to provide clear information about the availability of the cash.
      • - Establish policies for delinquent accounts (10804) - Creating a process to follow in case of a failed payment by account holders. Create rules and regulations for the account holder who has failed to make at least the minimum monthly payment by the due date.
      • - Analyze delinquent account balances (10805) - Examining balance statements of accountholders who failed to make required payments. Study or review the account details of customers' past payments when preparing negotiations policies.
      • - Correspond/Negotiate with delinquent accounts (10806) - Determine ways for customers in default to repay debts (e.g., allowing more time or discounts).
      • - Discuss account resolution with internal parties (10807) - Determining rules for handling accounts. Discuss and plan with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
      • - Process adjustments/write off balances (10808) - Maintaining reserves for write-offs and adjustments. Adjust or write off certain expenses and losses.
    • 8.2.5 - Manage and process adjustments/deductions (10746) - Creating and providing funds for necessary adjustments and deductions, including all expenses that were required for the business at certain point in time.
      • - Establish policies/procedures for adjustments (10809) - Creating guidelines to follow in case of adjustments to business processes.
      • - Analyze adjustments (10810) - Checking changes made in accounts during the year. Examine the alterations made in final accounts to rectify errors/omissions.
      • - Correspond/Negotiate with customer (10811) - Providing suitable offers to customers. Present different offers (e.g., discounts) available for customers or buyers.
      • - Discuss resolution with internal parties (10812) - Discussing and planning with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
      • - Prepare chargeback invoices (10813) - Creating a mechanism for consumer protection in case of a higher price charged. When a supplier sells a product at a higher price to the distributor than the price they have set with the end user, submit a chargeback to the supplier to recover the money lost in the transaction.
      • - Process related entries (10814) - Recording business transactions as they occur in order to provide a balanced accounts for financial reporting.
  • 8.3 - Perform general accounting and reporting (10730) - Making statements about business activities and functions. Prepare financial statements (balance sheet, income statement, statement of cash flows, and statement of stockholders' equity) according to accounting concepts and principles.
    • 8.3.1 - Manage policies and procedures (10747) - Creating procedures to perform general accounting and reporting. Follow the rules and regulations made for a particular process in the business. Publish accounting policies.
      • - Negotiate service-level agreements (10815) - Agreeing upon terms and conditions. Negotiate an agreement between two or more parties, the customer and service providers. Specify scope, quality, and responsibilities.
      • - Establish accounting policies (10816) - Establishing policies and procedures to prepare financial statements, including methods, measurement systems, and procedures for providing disclosures.
      • - Set and enforce approval limits (10817) - Implementing parameters for accounting. Apply set conditions for any approval process.
      • - Establish common financial systems (10818) - Establishing processes and procedures to exercise financial control and accountability. Record, verify, and report transactions that affect revenues, expenditures, assets, and liabilities.
    • 8.3.2 - Perform general accounting (10748) - Applying basic principles, concepts, and accounting practices in recording and preparing final accounts, and using accounting information in management.
      • - Maintain chart of accounts (10819) - Preparing trial balance account from general ledgers. List all accounts used in the general ledger. Alter accounts according to business requirements.
      • - Process journal entries (10820) - Making ledger and trial balance accounts from journal entries. This process requires the organization to record every transaction into accounts done by business. It is a base documents for preparing final accounts of company.
      • - Process allocations (10821) - Allocating funds across functions. Apportion funds in line with the budgets created. Formalize allocations in centralized internal records.
      • - Process period end adjustments (e.g., accruals and currency conversions) (10822) - Updating journal entries to adjust the balance of income and expenses at the end of an accounting period.
      • - Post and reconcile intercompany transactions (10823) - Checking accounts separately for a parent and subsidiary company. Manage relationship between a parent company and subsidiaries. Document intercompany transactions in separate financial statements.
      • - Reconcile general ledger accounts (10824) - Reviewing general ledger accounts for a parent and subsidiaries companies. Validate the integrity of account balances on the company's general ledger of accounts. Review and compare general ledger accounts balances with source documents to ensure that balances match.
      • - Perform consolidations and process eliminations (10825) - Aggregating different processes in the business. Eliminate discontinued processes.
      • - Prepare trial balance (10826) - Balancing debit and credit balances of trial balance to preparing final accounts. Calculate the total debits and credits in company's accounts. Correspond the sum of all debits with the sum of all credits. Adjust entries as appropriate.
      • - Prepare and post management adjustments (10827) - Accounting for changes due to country-level policy changes. Record adjustments made by management in the accounts.
    • 8.3.3 - Perform fixed-asset accounting (10749) - Accounting for long-term and fixed assets. Record purchased, fixed assets that are not easily convertible into cash. Account for costs, useful life, resale value, depreciation, and amortization.
      • - Establish fixed-asset policies and procedures (10828) - Creating rules for fixed assets market valuation. Make rules and regulations for fixed assets regarding depreciation, provisions, resale, usage, etc.
      • - Maintain fixed-asset master data files (10829) - Keeping reports up-to-date regarding fixed assets. Create a fixed assets database detailing price, life cycle, depreciation rate, resale value, installation information, usage information, etc.
      • - Process and record fixed-asset additions and retires (10830) - Keeping a summary of sales and purchases of assets. Record any expenses made for new assets purchased and sales of any old assets during the fiscal year.
      • - Process and record fixed-asset adjustments, enhancements, revaluations, and transfers (10831) - Keeping a summary of expenses for installing and modifying assets. Record any expenses made for new assets purchased, any expenses incurred on improvements, the valuation of assets to reach current market price, and any transfer assets from one location to another during the fiscal year.
      • - Process and record fixed-asset maintenance and repair expenses (10832) - Maintaining a record of expenses necessitated for repairs and the preservation of assets. Administer and oversee the maintenance and repair of any fixed assets. Record all related transactions.
      • - Calculate and record depreciation expense (10833) - Carrying out accounting for depreciation over fixed assets. Compute the sums necessitated. Maintain a record of the cost value of fixed assets over their useful life in the book of accounts.
      • - Reconcile fixed-asset ledger (10834) - Balancing the ledger account balance for fixed assets. Correct errors in the books of fixed assets. Provide correct information in relevant accounts.
      • - Track fixed-assets including physical inventory (10835) - Checking and updating the record of all raw materials and fixed assets. Track all fixes asset. Maintain a record of all inventory items.
      • - Provide fixed-asset data to support tax, statutory, and regulatory reporting (10836) - Showing market value and related expenses on fixed assets data for taxation. Provide complete information recorded in the books of fixed assets about purchase price, depreciation, installation charges, resale market value etc. for tax and regulatory purposes.
    • 8.3.4 - Perform financial reporting (10750) - Reporting on the organization's financial status to stakeholders. Include balance sheets, income statements, cash flow statements, and statements of shareholders' equity.
      • - Prepare business unit financial statements (10837) - Making reports of subsidiaries units to show profits generated from them. Prepare financial statements (balance sheets, income statements, cash flow statements and statements of shareholders' equity) for a single unit of a business.
      • - Prepare consolidated financial statements (10838) - Making final accounts for all units of company together. Prepare combined financial statements of a parent company and its subsidiaries (i.e., separate legal entities controlled by a parent company) showing assets, liabilities, equity, income, expenses, and cash flows.
      • - Perform business unit reporting/review management reports (10839) - Making reports for units/subsidiaries to help management in decision making. Prepare financial statements (balance sheets, income statements, cash flow statements, and statements of shareholders' equity) for a single unit of a business. Break down profits and losses by function/unit, clients, products, and region.
      • - Perform consolidated reporting/review of cost management reports (10840) - Making reports for all units to help higher management in decision making. Prepare combined financial statements of a parent company and its all subsidiaries (separate legal entities controlled by a parent company) showing assets, liabilities, equity, income, expenses and cash flows, and also going through periodic reports which shows the actual and estimated costs and their variances.
      • - Prepare statements for board review (10841) - Preparing a draft of financial statements for the board to review before they are sent to the auditor.
      • - Produce quarterly/annual filings and shareholder reports (10842) - Making and presenting financial reports to stakeholders. Create annual and quarterly financial statements for reporting purposes. Prepare shareholder reports with details of the profit-and-loss account, balance sheet, and past year's business activities.
      • - Produce regulatory reports (10843) - Reporting raw or summary data for final accounts following rules and regulations.
  • 8.4 - Manage fixed-asset project accounting (10731) - Managing accounts for large funds-invested projects. Manage and account for fixed assets projects (capital projects), which required significant capital investments over many years.
    • 8.4.1 - Perform capital planning and project approval (10751) - Preparing a project finance report to solicit approvals in capital projects. Prepare budgets for projects that require heavy investments. Report on project finances to solicit approvals from management.
      • - Develop capital investment policies and procedures (10844) - Creating procedures and policies to follow for investing in capital projects. Create rules and regulations regarding large investment plans, which require in-depth forecasting for expenditure and revenue.
      • - Develop and approve capital expenditure plans and budgets (10845) - Creating budgets, and soliciting approvals for capital projects. Prepare budgets for projects that require heavy investments. Secure approvals from management.
      • - Review and approve capital projects and fixed-asset acquisitions (10846) - Evaluating and supporting capital investments in projects and fixed assets. Confirm details of capital projects. Secure approvals from managements for large investments.
      • - Conduct financial justification for project approval (10847) - Reviewing all project business cases in order to substantiate projected financial gains. Validate any project's business case. Juxtapose the benefits derived from moving a project forward against the associated costs.
    • 8.4.2 - Perform capital project accounting (10752) - Accounting for large-scale and large-cost investments. Manage and account for ongoing activities related to capital projects, including setting up new projects, recording project transactions, monitoring and tracking spending, closing and capitalizing projects, and measuring the financial returns on completed projects.
      • - Create project account codes (10848) - Giving reference codes for every project.
      • - Record project-related transactions (10849) - Noting every transaction during a project in a common financial database. Document all transactions associated with any project. Maintain a centralized repository of all such financial data.
      • - Monitor and track capital projects and budget spending (10850) - Evaluating project progress and funds invested. Observe and track significant funds invested on any long-term project. Compare to budget.
      • - Close/Capitalize projects (10851) - Checking for returns generated from projects for decision making. Evaluate capital projects that require heavy investments. Decide whether to proceed based on the revenues generated.
      • - Measure financial returns on completed capital projects (10852) - Comparing a finished project's profitability with forecasted returns. Scrutinize revenues generated by completed projects that required heavy investments. Determine profitability.
  • 8.5 - Process payroll (10732) - Handling reporting time, managing pay, and processing taxes from salaries. Pay employees. Withhold taxes. Confirm the correct funds are paid to the correct government agency.
    • 8.5.1 - Report time (10753) - Recording the reporting time of employees on-site. Track working days, salary calculations, holidays taken, number of hours spend in the office, billing hours, etc.
      • - Establish policies and procedures (10853) - Developing policies and procedures for the HR function to calculate compensation.
      • - Collect and record employee time worked (10854) - Tracking billing hours of each employee on daily basis.
      • - Analyze and report paid and unpaid leave (10855) - Tracking leaves allowed and taken by employees.
      • - Monitor regular, overtime, and other hours (10856) - Observing the number of hours worked by an employees on daily basis. Track the number of hours worked by an employee, as well as the number of hours worked beyond normal working hour's according to company standards.
      • - Analyze and report employee utilization (10857) - Monitoring the number of productive hours for employees.
    • 8.5.2 - Manage pay (10754) - Managing the total payments made in employees payroll, including bonuses and compensation.
      • - Enter employee time worked into payroll system (10858) - Tracking the number of hours worked for the payroll system. Register the number of hours worked by an employee into the payroll system for the purpose of calculating salaries or wages.
      • - Maintain and administer employee earnings information (10859) - Tracking and oversee salary breakups of employees. This process requires the organization to manage and update information pertaining to the structure of every employee's salary. This would involve the updating any changes to the salary structures of the employees, in a central repository which can be accessed by pertinent departments.
      • - Maintain and administer applicable deductions (10860) - Processing salary deductions for tax purposes. Keep and manage the details of every employee's salary deductions based on their expenses and investments during the year.
      • - Monitor changes in tax status of employees (10861) - Tracking changes in the salary structure of employees for tax deductions.
      • - Process and distribute payments (10862) - Processing and distributing salaries to all employees. Execute the payroll management function through the dispensation of employee salaries. Leverage a centralized database of all payroll expenses.
      • - Process and distribute manual checks (10863) - Handling incorrect/omitted salary payments.
      • - Process period-end adjustments (10864) - Adjusting salary deductions for tax purposes at the end of the year.
      • - Respond to employee payroll inquiries (10865) - Addressing salary-related queries raised by employees.
    • 8.5.3 - Process payroll taxes (10755) - Deducting and paying taxes from employees' salaries.
      • - Calculate and pay applicable payroll taxes (10866) - Paying tax according to appropriate deductions made from salaries. Calculate and pay the tax liabilities according to the salaries and tax regulations of employees with the help of certified chartered accountants.
      • - Produce and distribute employee annual tax statements (10867) - Providing tax deductions statements created by certified chartered accountants to every employee for their reference or refunds.
      • - File regulatory payroll tax forms (10868) - Filling taxes, and highlighting different sources of income and expenditures made.
  • 8.6 - Process accounts payable and expense reimbursements (10733) - Handling bills and reimbursements to be made. Make payments for goods or services taken or used on behalf of the organization.
    • 8.6.1 - Process accounts payable (AP) (10756) - Processing payments of operating expenses and other supplier charges. This includes the development of policies and procedures around processing of accounts payable and all operations. This process is often supported by key technology enablers.
      • - Verify AP pay file with purchase order vendor master file (10869) - Matching records of bills to be paid with accounts. Check accounts payable entries with vendor's account for every payment made.
      • - Maintain/Manage electronic commerce (10870) - Tracking all online transactions.
      • - Audit invoices and key data in AP system (10871) - Monitoring and evaluating bills registered in accounts books. Check all invoices. Maintain records.
      • - Approve payments (10872) - Processing payments for products/services.
      • - Process financial accruals and reversals (10873) - Handling transactions for accruals and reversals. Record transactions in the books of accounts on an accrual basis (irrespective of the actual cash flow) and reversals basis (cancel out the adjusting entries) for balancing accounts.
      • - Process taxes (10874) - Filing the amount of taxes that a company owes as of the balance sheet date. Prepare tax returns, including the income tax filing for an individual or business entity from earnings.
      • - Research/Resolve exceptions (10875) - Resolving any atypical or inconsistent situation concerning payments to be made by the organization. Address any exceptional case of accounts payable on an ad hoc basis, by seeking counsel or carrying out any necessary research.
      • - Process payments (10876) - Making payments for products/services on due dates (payment cycle) decided by parties involved.
      • - Respond to AP inquiries (10877) - Clarifying or address queries relating to the particulars of AP such as date, discounts, amount, and installments. Coordinate with concerned parties about the fulfillment of bills payable.
      • - Retain records (10878) - Keeping bills of every transaction for future reference.
      • - Adjust accounting records (10879) - Rectifying for alterations occurred in accounts while recording.
    • 8.6.2 - Process expense reimbursements (10757) - Processing reimbursements to employees for the expenses incurred during the course of business. Approve and process advancements and reimbursements for employee expenses on the organization's behalf. Capture and report relevant tax data and manage personal accounts.
      • - Establish and communicate expense reimbursement policies and approval limits (10880) - Explaining policies and procedures related to reimbursements requests by employees. Set policies regarding reimbursement process and amount limits etc. Inform employees.
      • - Capture and report relevant tax data (10881) - Collecting and reporting all pertinent information regarding the taxes paid by the organization's employees.
      • - Approve reimbursements and advances (10882) - Permitting expense reimbursement requests from employees.
      • - Process reimbursements and advances (10883) - Paying for expense reimbursement requests from employees. (Follow Approve reimbursements and advances [10882] according to policies and conditions.)
      • - Manage personal accounts (10884) - Maintaining accounts of individuals who are connected with business.
  • 8.7 - Manage treasury operations (10734) - Managing business's investments in trading in bonds, currencies, financial derivatives, etc. Manage the financial assets and holdings of the organization. Optimize the organization's liquidity. Invest excess cash. Reduce financial risks.
    • 8.7.1 - Manage treasury policies and procedures (10758) - Managing rules and regulations for investments in trading in bonds, currencies, financial derivatives, etc. Establish policies and procedures for investments made. Optimize liquidity in treasury operations.
      • - Establish scope and governance of treasury operations (10885) - Selecting opportunities and the authoritative body for investments in trading in bonds, currencies, financial derivatives, etc.
      • - Establish and publish treasury policies (10886) - Creating and providing investment regulations for the organization. Establish policies and procedures for investments to optimize liquidity in treasury operations. Create a written copy of it.
      • - Develop treasury procedures (10887) - Making processes for investing. Create steps for investments in bonds, currencies, and financial derivatives in order to optimize company's liquidity, invest excess cash, and reduce its financial risks.
      • - Monitor treasury procedures (10888) - Checking treasury processes in order to optimize company's liquidity, invest excess cash, and reduce its financial risks.
      • - Audit treasury procedures (10889) - Auditing the treasury function.
      • - Revise treasury procedures (10890) - Reassessing all treasury procedures based on audit findings.
      • - Develop and confirm internal controls for treasury (10891) - Creating and managing the internal control systems for investments in bonds, currencies, and financial derivatives to verify procedures.
      • - Define system security requirements (10892) - Describing the need of system security requirements for controlling access, reliability of information, accountability, and availability of information in the organization.
    • 8.7.2 - Manage cash (10759) - Taking care of all cash-related activities in the business. Manage and reconcile cash positions. Manage cash equivalents. Process and oversee electronic fund transfers. Develop cash flow forecasts. Manage cash flows. Produce cash management accounting transactions and reports. Manage and oversee banking relationships. Analyze, negotiate, resolve, and confirm bank fees.
      • - Manage and reconcile cash positions (10893) - Correcting cash differences in the books of accounts. Make optimum utilization of funds available in the business. Check for differences to rectify.
      • - Manage cash equivalents (10894) - Taking care of all cash-related activities in the business. Utilize short-term assets that can be easily convertible into cash, such as marketable securities, commercial paper and short-term government bonds, and treasury bills.
      • - Process and oversee electronic fund transfers (EFTs) (10895) - Supervising all online transactions.
      • - Develop cash flow forecasts (10896) - Preparing forecasts for the cash generated or used by the organization.
      • - Manage cash flows (10897) - Delaying the outflow of funds as long as possible, but encourage the inflow of as fast as possible.
      • - Produce cash management accounting transactions and reports (10898) - Presenting reports on all cash-related activities. Collect and manage short-term investing activities. Prepare reports of all transactions done.
      • - Manage and oversee banking relationships (10899) - Maintaining and directing the course of relationships with banking partners.
      • - Analyze, negotiate, resolve, and confirm bank fees (10900) - Studying and finalizing bank fees for services provided by banks. Negotiate and finalize nominal fees that bank charges for various services, such as requesting a deposit slip or counter check or certifying papers.
    • 8.7.3 - Manage in-house bank accounts (10760) - Managing financial services provided by an in-house bank structure in the corporation that is operating like a commercial bank.
      • - Manage in-house bank accounts for subsidiaries (10901) - Maintaining subsidiaries' company accounts opened with bank inside the corporation. Manage different financial services provided by in-house bank structure for parent companies' subsidiaries or branches.
      • - Manage and facilitate inter-company borrowing transactions (10902) - Arranging loans for subsidiaries from in-house banks.
      • - Manage centralized outgoing payments on behalf of subsidiaries (10903) - Handling payments made for subsidiaries by parent company.
      • - Manage central incoming payments on behalf of subsidiaries (10904) - Handling payments received by parent company for subsidiaries.
      • - Manage internal payments and netting transactions (10905) - Taking care of all business outflows and recording as whole. Manage making all payments for the organization and its units or subsidiaries. Track in books of accounts of parent company.
      • - Calculate interest and fees for in-house bank accounts (10906) - Computing all expenses paid to and receivables collected over the organization's banking activity. Calculate all charges and receivables, towards interest, fees, and any other payments over its own bank accounts. Record transactions in the books of accounts.
      • - Provide account statements for in-house bank accounts (10907) - Facilitating account statements for all in-house banking activity.
    • 8.7.4 - Manage debt and investment (10761) - Taking care of the organization's financial position. Manage its loans or debts from different sources and investments. Leverage the most profitable options to balance the financial position in the market.
      • - Manage financial intermediary relationships (10908) - Maintaining smooth relations with financial investment banks that help availing loans and services.
      • - Manage liquidity (10909) - Managing and maintaining enough liquidity in form of cash and cash equivalents in the business to meet urgent and timely requirements
      • - Manage issuer exposure (10910) - Managing the exposure incurred by the issuer for providing credit to the borrower.
      • - Process and oversee debt and investment transactions (10911) - Tracking loans taken and money invested in different options. Arrange and supervise loans from banks and individuals and investments in different available and profitable options.
      • - Process and oversee foreign currency transactions (10912) - Arranging and supervising foreign exchange rate changes to avoid loss on foreign-currency transactions.
      • - Produce debt and investment accounting transaction reports (10913) - Creating transactions report of loans and investments. Prepare and maintain records of loans and investment transactions.
      • - Process and oversee interest rate transactions (14210) - Supervising the interest paid or received by the organization. Arrange and supervise interest rate swap transactions to manage exposure to fluctuations in interest rates. Or attain a marginally lower rate of interest than could be gained through a swap.
    • 8.7.5 - Monitor and execute risk and hedging transactions (11208) - Performing transactions that limit investment risk with the help of derivatives, such as options and futures contracts. Manage interest rates, foreign exchange, and exposure risks. Develop and execute hedging transactions. Evaluate and refine hedging positions. Produce hedge accounting transactions and reports. Monitor credit.
      • - Manage interest-rate risk (11209) - Handling risks arising from changes in the interest rate.
      • - Manage foreign-exchange risk (11210) - Taking care of foreign-exchange risks.
      • - Manage exposure risk (11211) - Taking care of exposure risks. Maintain financial investments in particular investments or a portfolios that could be risky for the organization.
      • - Develop and execute hedging transactions (11212) - Preparing and buying derivatives, such as options and futures contracts, to limit investment risks.
      • - Evaluate and refine hedging positions (11213) - Examining options in the market for hedging investments. Select an option.
      • - Produce hedge accounting transactions and reports (11214) - Preparing and documenting accounts and records of all hedging investment transactions to reduce risks due to change in markets.
      • - Monitor credit (11215) - Revising credit reports periodically for accurateness and changes that could be suggestive of duplicitous activity.
  • 8.8 - Manage internal controls (10735) - Administering internal controls. This process requires the organization to manage entity's board of trustees, management, and other personnel in order to offer judicious assurance about the achievement of effectiveness, proficiency of operations, and reliability of financial reporting.
    • 8.8.1 - Establish internal controls, policies, and procedures (10762) - Forming rules and regulations to ensure the achievement of effectiveness, proficiency of operations, and reliability of financial reporting.
      • - Establish board of directors and audit committee (10914) - Establishing board of directors and auditing committee in order to assign roles and responsibilities for internal controls.
      • - Define and communicate code of ethics (10915) - Outlining and communicating a code of ethics act responsibly.
      • - Assign roles and responsibility for internal controls (10916) - Defining roles, responsibilities, and accountabilities for effectiveness and proficiency of operations and reliability of financial reporting.
      • - Define business process objectives and risks (11250) - Outlining the objectives and risks associated with a process. Delineate process goals. Determine the risks attached to it. Determine what the process is meant to accomplish, potential issues, a timeline of potential risks, the scope and potential impact of risks, etc.
      • - Define entity/unit risk tolerances (11251) - Outlining the risk tolerance levels of individual units, as well as the organization as a whole. Determine the specific maximum risk to take in quantitative terms for each relevant risk subcategory, including strategic, operational, financial, and compliance risks.
    • 8.8.2 - Operate controls and monitor compliance with internal controls policies and procedures (10763) - Incorporating planning, management, operations, and monitoring of internal control mechanism policies and procedures in order to manage internal controls. Design and implement control activities. Monitor control effectiveness. Remediate control deficiencies. Create compliance functions. Operate compliance functions. Implement and maintain technologies and tools to enable the internal controls-related activities.
      • - Design and implement control activities (10917) - Defining and executing policies, procedures, techniques, and mechanisms and actions taken to minimize risk.
      • - Monitor control effectiveness (10918) - Overseeing the activities for internal controls. Observe the effectiveness of policies, procedures, techniques, and mechanisms actions taken to minimize risk.
      • - Remediate control deficiencies (10919) - Taking corrective measures for policies, procedures, techniques, and mechanisms actions taken to minimize risk. (Conduct in accordance with Monitor control effectiveness [10918] in order to determine and rectify the control deficiencies.)
      • - Create compliance function (10920) - Developing a compliance function for internal controls. Monitor trading activity. Avoid conflicts of interest. Safeguard compliance with guidelines at brokerage houses. Avoid money laundering and potential tax evasion.
      • - Operate compliance function (10921) - Administering operational activities of a compliance function.
      • - Implement and maintain controls-related enabling technologies and tools (10922) - Implementing and maintaining the compliance technological systems or equipment that are control-enabled.
    • 8.8.3 - Report on internal controls compliance (10764) - Reporting on internal controls compliance to the appropriate authority, including IT regulations and pertinent data.
      • - Report to external auditors (10923) - Reporting to external auditors. This process requires the organization to report to external auditors about the regulations for any critical data that the organization is holding.
      • - Report to regulators, share-/debt-holders, securities exchanges, etc. (10924) - Reporting to regulators, shareholders, debt holders, securities exchanges, etc. about IT regulations and pertinent data.
      • - Report to third parties (e.g., business partners) (10925) - Reporting to suppliers, customers, and partners that are doing business with the company about IT regulations and pertinent data.
      • - Report to internal management (10926) - Reporting to internal management (all employees, directors, and management) about IT regulations and pertinent data.
  • 8.9 - Manage taxes (10736) - Estimating the organization's periodic tax liabilities. Ensure that appropriate taxing authorities receive tax return filings and payments when due.
    • 8.9.1 - Develop tax strategy and plan (10765) - Setting targets for periodic tax liabilities. Assess the tax impact of various activities such as the acquisition or disposal of fixed assets or a deliberate change in number of employee.
      • - Develop foreign, national, state, and local tax strategy (10927) - Developing a tax strategy for foreign, national, state, local administration. Set up tax strategies for foreign trade in imports and exports and at national, state, and local level.
      • - Consolidate and optimize total tax plan (10928) - Combining and enhancing a rational analysis of a financial condition or plan from a tax perspective in order to align financial goals through efficient tax planning.
      • - Maintain tax master data (10929) - Maintaining a master file about the rational analysis of a financial condition or plan from a tax perspective in order to align financial goals through efficient tax planning.
    • 8.9.2 - Process taxes (10766) - Processing the taxes of the organization in line with the regional taxation structure, including corporate, property, excise, and service taxes.
      • - Perform tax planning/strategy (10930) - Creating and implementing strategies for taxes to be paid or collected by the business.
      • - Prepare returns (10931) - Preparing and submitting tax reports for every employee to the tax department in order to show the tax paid and deducted from their salaries in the year.
      • - Prepare foreign taxes (10932) - Preparing reports about paid or accrued foreign taxes to an overseas country.
      • - Calculate deferred taxes (10933) - Calculating the income that has been realized when the tax on that income has not.
      • - Account for taxes (10934) - Managing the organization's financial accounts for the purpose of taxation. Prepare and maintain the tax paid by the organization to the country they have business in.
      • - Monitor tax compliance (10935) - Checking and correcting the tax policies according to the rules and regulations set by the organization.
      • - Address tax inquiries (10936) - Addressing any tax queries by any regulatory or government authorities. Review historical records related to taxation within the organization in order to respond to queries.
  • 8.10 - Manage international funds/consolidation (10737) - Managing cash collections and disbursements made by operating units across the enterprise. When appropriate, transfer cash from the operating units to parent-level bank accounts managed by the organization's treasury team.
    • 8.10.1 - Monitor international rates (10767) - Forecasting and monitoring changes in foreign currency value or interest rates around the world that play an important role in the organization.
    • 8.10.2 - Manage transactions (10768) - Managing any transfer of funds in the course of conducting cross-border trades or investments, including conversion across currencies. Find the most suitable alternative for making payments, while saving taxes and avoiding any unwarranted regulation, with the objective of protecting capital.
    • 8.10.3 - Monitor currency exposure/hedge currency (10769) - Assessing exposure to potential financial losses as a result of changes in the value of currencies. Forecast the impact of movements in foreign currency values. Enter into financial transactions designed to offset or limit potential exposure to loss.
    • 8.10.4 - Report results (10770) - Documenting and reporting accounting entries to formally report financial gains or losses experienced as a result of foreign exchange activity.