Holdings

The management company of a holding structure has its own business peculiarities. Besides business controlling functions of each separate holding enterprise this management company must organize the efficient management of the entire holding.

Despite the diversification level of a holding structure, the basic activity of a management company should always be the efficient management of the holding and sound distribution of financial resources. The financial department of a management company performs this function in the majority of cases.

In practice even entirely different holdings have the same tasks of financial management. These tasks include:

• financial planning and accounting for all of the holding enterprises;
• generation of financial reports in accordance with local standards (e.g., RAS);
• generation of financial reports in accordance with IFRS or US GAAP standards;
• generation of consolidated reports per segments (business types) and for entire holding;
• creation of a centralized treasure house;
• holding’s cost management.

NaviCon Group solutions offer holding companies the following functionality:

• Reporting conversion and consolidation. NaviCon Group solutions help to generate consolidated reports per all divisions and business activities and convert them into IFRS standards. Consolidation data can be exported from any accounting system (Microsoft Dynamics NAV, Microsoft Dynamics AX, “1C: Enterprise”, etc.). The offered solutions provide the functionality to map the charts of accounts from the departments of the holding. Internal holding transactions are automatically eliminated.
• Money Management. NaviCon group solutions offer the full operational planning matrix; control over payments and financial flows within the holding; automated business processes for payment initiation, consolidation and approval (including budget control); as well as the processes for creation of payment documents and their export to Client Bank systems. Internal regulations of expenses and payment compliance to the budget are checked automatically.
• NaviCon Group solutions allow efficient cost management for all holding enterprises. Cost allocation can be done according to the predefined user templates or according to pre-setup allocation algorithms. Regular costs are calculated automatically. The offered functionality provides analysis of cost allocation, identification of the most money-consuming business areas, overview of the financial results per different business activities and for entire holding.

Thus, automation of financial management decreases the time spent on generation of consolidated reports and improves their quality and reliability. It provides operational planning and control over financial flows, increases the precision of cost planning and efficiency of both separate enterprises and the entire holding.