Finance
Welcome to the Finance documentation hub. This section provides comprehensive information about financial operations, policies, and procedures.
Quick Navigation
- Financial Planning & Analysis
- Accounting & Bookkeeping
- Budgeting & Forecasting
- Expense Management
- Financial Reporting
Financial Planning & Analysis
Strategic Financial Management
Our finance team drives data-driven decision-making through comprehensive financial analysis and strategic planning.
Key Focus Areas
- Revenue Growth Analysis: Monthly revenue tracking and trend analysis
- Cost Optimization: Identifying opportunities for operational efficiency
- Investment Planning: Capital allocation and ROI analysis
- Risk Management: Financial risk assessment and mitigation strategies
- Cash Flow Management: Ensuring healthy liquidity and working capital
Financial Metrics & KPIs
- Gross Margin: Target 70-75%
- Operating Margin: Target 20-25%
- Customer Acquisition Cost (CAC): < $500
- Lifetime Value (LTV): > $5,000
- LTV/CAC Ratio: > 3:1
- Monthly Recurring Revenue (MRR): Growth target 15% QoQ
- Annual Recurring Revenue (ARR): $10M+ target
- Burn Rate: < $500K/month
- Runway: Minimum 18 months
Accounting & Bookkeeping
Chart of Accounts Structure
Assets (1000-1999)
- 1000-1099: Current Assets
- 1010: Cash and Cash Equivalents
- 1020: Accounts Receivable
- 1030: Prepaid Expenses
- 1100-1199: Fixed Assets
- 1110: Equipment
- 1120: Furniture & Fixtures
- 1130: Accumulated Depreciation
Liabilities (2000-2999)
- 2000-2099: Current Liabilities
- 2010: Accounts Payable
- 2020: Accrued Expenses
- 2030: Deferred Revenue
- 2100-2199: Long-term Liabilities
- 2110: Long-term Debt
- 2120: Capital Leases
Revenue (3000-3999)
- 3000-3099: Product Revenue
- 3010: Subscription Revenue
- 3020: Professional Services
- 3030: Training & Support
Expenses (4000-5999)
- 4000-4999: Cost of Goods Sold
- 5000-5999: Operating Expenses
- 5100: Salaries & Benefits
- 5200: Marketing & Sales
- 5300: General & Administrative
- 5400: Research & Development
Accounting Policies
- Revenue Recognition: ASC 606 compliance
- Depreciation Method: Straight-line over useful life
- Inventory Valuation: FIFO method
- Bad Debt Provision: 2% of accounts receivable
- Capitalization Threshold: $5,000
Budgeting & Forecasting
Annual Budget Process
Timeline
- Q3: Department budget requests
- October: Initial budget compilation
- November: Budget review and adjustments
- December: Board approval
- January: Budget implementation
Budget Categories
- Revenue Budget
- New customer acquisition
- Existing customer expansion
-
Renewal rates and churn
-
Operating Expense Budget
- Personnel costs
- Marketing spend
- Technology infrastructure
-
Professional services
-
Capital Expenditure Budget
- Hardware and equipment
- Software licenses
- Office improvements
Forecasting Models
- Rolling 12-Month Forecast: Updated monthly
- Scenario Planning: Best case, base case, worst case
- Sensitivity Analysis: Key variable impact assessment
- Variance Analysis: Actual vs. budget comparison
Expense Management
Expense Policy Guidelines
Travel & Entertainment
- Flights: Economy class for domestic, business class for international > 6 hours
- Hotels: Up to $250/night domestic, $350/night international
- Meals: $75/day domestic, $100/day international
- Ground Transportation: Ride-sharing preferred, rental cars with approval
Procurement Process
- Under $1,000: Direct purchase with manager approval
- $1,000 - $10,000: Purchase order required, director approval
- $10,000 - $50,000: Three quotes required, VP approval
- Over $50,000: RFP process, CFO approval
Expense Reimbursement
- Submit within 30 days of expense
- Receipt required for all expenses over $25
- Use company credit card when possible
- Monthly expense report submission
Vendor Management
- Vendor Onboarding: W-9, insurance verification, contract review
- Payment Terms: Net 30 standard, early payment discounts negotiated
- Vendor Performance: Annual review and renegotiation
- Preferred Vendors: Established for common purchases
Financial Reporting
Monthly Financial Package
Distributed by the 15th of each month:
- Executive Summary
- Key metrics dashboard
- Variance commentary
-
Cash position update
-
Financial Statements
- Income Statement
- Balance Sheet
-
Cash Flow Statement
-
Department Reports
- Budget vs. actual by department
- Headcount and compensation
- Project financials
Quarterly Board Reporting
- Comprehensive financial review
- Strategic initiative updates
- Forecast adjustments
- Risk assessment
Annual Reporting
- Audited financial statements
- Tax returns and compliance
- Annual report preparation
- Investor communications
Compliance & Controls
Internal Controls
- Segregation of Duties: Separate approval and processing
- Authorization Matrix: Clear approval hierarchies
- Regular Audits: Quarterly internal audits
- Documentation Requirements: All transactions documented
- System Access Controls: Role-based permissions
Regulatory Compliance
- Tax Compliance: Federal, state, and local tax filings
- GAAP Adherence: Generally Accepted Accounting Principles
- SOX Compliance: For public company readiness
- Data Security: PCI DSS compliance for payment processing
Financial Systems & Tools
Core Systems
- ERP System: NetSuite for financial management
- Expense Management: Expensify for expense tracking
- Billing System: Stripe/Zuora for subscription billing
- Payroll System: ADP/Gusto for payroll processing
- Planning Tool: Adaptive/Anaplan for FP&A
Reporting Tools
- Business Intelligence: Tableau/Power BI dashboards
- Financial Modeling: Excel/Google Sheets templates
- Document Management: SharePoint/Google Drive
Contact Information
Finance Team
- CFO: cfo@company.com
- Controller: controller@company.com
- AP/AR: accounting@company.com
- FP&A: finance@company.com
- Payroll: payroll@company.com
Important Deadlines
- Expense Reports: Last day of each month
- Invoice Submission: 25th of each month
- Budget Requests: September 15th annually
- Quarter Close: 5 business days after quarter end
Last Updated: January 2025 Policy Review: Quarterly Next Audit: March 2025