Financial Management System Model
Originally published: 04/03/2020 20:00
Last version published: 12/04/2021 07:18
Publication number: ELQ-30739-15
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Financial Management System Model

Fully fledged financial management package for private investors and small financial service businesses.

Description
A comprehensive all-in-one tool to handle all sorts of financial management needs, from setting a budget and controlling daily spending to reconciling account balances, from recording different types of investments to calculating actual returns and monitoring net worth and profitability over time. Multi-currency with extensive charting, accounting and controlling features.
Ideally suited for:
• private investors who handle their own investments or want to keep a tight control on how their money is being managed;
• Financial Analysts, Money Managers, Accountants, Financial Controllers;
• Finance students or anyone who wants to improve on their financial knowledge through practice.
The model is suitable for daily, monthly and yearly performance management purposes. Financial statements, cashflow and performance vs. budget reports are updated on a daily basis. Balances as of end of each month are shown side by side for easy comparison throughout the year.

Covered accounting features include calculation and automatic booking of:
• deferred income/expenses
• fixed assets depreciation
• interest accruals
• bond premium/discount accruals
• unrealized forex PL and unrealized trading PL

Main controlling features:
• Expenses and revenues budgeting
• Expenses and revenues breakdown by type
• Net Profitability and total return by portfolio (including allocation of direct costs)
• Assets breakdown by currency, customer category, geographic area

The system, consisting of many spreadsheets, can be easily navigated through the Main Menu, providing access to:
• Initial data upload, that walks you through all the steps to be taken to get started, with the ability to select the starting date, if different from January 1st;
• Transaction Registers, to record transactions in cash or through current/credit card accounts
• A quick recap of cash, current account and credit card balances;
• Investment Menu, with dedicated input sheets for each type of investment plus additional sheets for recording debt. Both fixed and variable interest rates covered;
• Charts, divided by type (Profitability, Profit and Loss, Net Worth), with interactive function through drop-down windows;
• Reporting Menu, with the ability to select the desired report, already in printable form;
• Administration Menu, to be used for system maintenance actions such as:
- updating market rates
- modifying transaction descriptions that populate drop-down windows in input screens
- current account reconciliation, with ability to search movements for a specified time period and for each account
- expenses/revenues budget input
- investigation and resolution of transaction/system errors
- access to individual databases
- report maintenance, due dates tickler etc.
• Dashboard, summarising key performance indicators in the form of graphs;
• New Year Reset, describing the start-of-year procedure for balances re-setting, to be completed before recording transactions for the new year.

Whenever necessary, warnings and explanation messages are displayed to prevent/correct errors. The system was developed using Excel 2016 for Mac. System requirement at least 8GB RAM. Depending on computer capacity, the file may take between 30 and 50 seconds to open.

This Best Practice includes
1 EXCEL WORKBOOK

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Further information

Comprehensive all-in-one tool to handle all sorts of financial management needs, from setting a budget and controlling daily spending to reconciling account balances, from recording different types of investments to calculating actual returns and monitoring net worth and profitability over time. Supporting wealth management and redefinition of investment strategies.

Ideally suited for:
• provate investors who handle their own investments or want to keep a tight control on how their money is being managed;
• Financial Advisors, Money Managers, Accountants, Controllers;
• Finance students or anyone who wants to improve on their financial knowledge through practice.

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