Risks and controls
Limits, authority levels, segregation of duties, fraud / duplicate controls, early warning indicators and scenario analysis must span every domain.
Resource 1
Finance function map for AI implementation
This page presents the finance function architecture as an L1–L2 framework. Expand any domain and go directly to its automation and AI priorities or related use cases.
10 L1 domains
Operating model for a mid-sized business
Cross-functional risks, data and governance
Jump to a domain
L1–L2 domains and processes
Each section starts with a short description of the domain's role. Expand it to explore objectives, processes, deliverables and links to other resources.
Strategy, FP&A, Budgeting and Performance Management
Strategic planning, budgeting, rolling forecasts and performance reviews.
+
Strategy, FP&A, Budgeting and Performance Management
Strategic planning, budgeting, rolling forecasts and performance reviews.
Objective and L2 processes
Connect business strategy with financial targets, budgets and performance management.
- Strategic financial planning and translation of strategy into financial targets.
- Annual budgeting, rolling forecasts and KPI tracking.
- Budget-versus-actual analysis, business driver management, scenario and stress analysis.
Outputs and stakeholders
- Outputs: financial strategy, budget, forecast packs and sensitivity analysis.
- Stakeholders: CEO, CFO, functional leaders and the board.
Management Reporting and Business Analysis
Management reporting, profitability analysis and analytical support for decisions.
+
Management Reporting and Business Analysis
Management reporting, profitability analysis and analytical support for decisions.
Objective and L2 processes
Provide a management view of the business and support data-driven decisions.
- Regular management reporting and executive packs.
- Analysis of profit and loss, balance sheet, cash flow, profitability, and channel and segment economics.
- Ad hoc analytics and consistent management metric definitions.
Outputs and stakeholders
- Outputs: monthly management packs, dashboards and decision memos.
- Stakeholders: CEO, CFO, commercial teams and operational leaders.
Related resources
Record-to-Report and Period Close
Accounting reliability, close discipline and consolidation of actuals.
+
Record-to-Report and Period Close
Accounting reliability, close discipline and consolidation of actuals.
Objective and L2 processes
Ensure accurate period-end close and reliable financial results.
- Monthly, quarterly and annual close.
- Reconciliations, accruals, reserves, intercompany and consolidations.
- Prepare actuals for management reporting, audits and external reporting.
Outputs and stakeholders
- Outputs: closed periods, reconciliation packs and consolidation files.
- Stakeholders: CFO, accounting team, FP&A and auditors.
Related resources
Procure-to-Pay
The spending cycle from requests and contracts to payment and accounts payable control.
+
Procure-to-Pay
The spending cycle from requests and contracts to payment and accounts payable control.
Objective and L2 processes
Manage expenditure with controls over business justification, limits and supplier terms.
- Initiation of purchase and spending requests.
- Approvals, supplier selection and contract management.
- Invoice processing, accounts payable ageing and payment preparation.
Outputs and stakeholders
- Outputs: purchase requests, contracts, accounts payable registers and spend data.
- Stakeholders: internal requesters, procurement, financial control, treasury and suppliers.
Related resources
Order-to-Cash and Revenue Control
Billing, revenue, collections and commercial variances.
+
Order-to-Cash and Revenue Control
Billing, revenue, collections and commercial variances.
Objective and L2 processes
Ensure quality in revenue, collections and commercial terms control.
- Billing and customer terms checks.
- Receivables collection, short payments, disputes and credit notes.
- Control of discounts, rebates and cash conversion quality.
Outputs and stakeholders
- Outputs: billing registers, accounts receivable ageing and revenue bridges.
- Stakeholders: sales, customer service, CFO, FP&A and customers.
Related resources
Treasury and Liquidity Management
Liquidity, payment scheduling, debt servicing and banking operations.
+
Treasury and Liquidity Management
Liquidity, payment scheduling, debt servicing and banking operations.
Objective and L2 processes
Maintain liquidity, payment discipline and short-term financial resilience.
- Daily cash positioning and payment execution.
- Short-term cash flow forecasting and liquidity reallocation.
- Covenants, debt schedules and foreign exchange / interest rate monitoring.
Outputs and stakeholders
- Outputs: payment calendar, cash position report and cash forecast.
- Stakeholders: CFO, treasury, business owners and banks.
Related resources
Tax, Compliance and Statutory Contour
Mandatory tax, regulatory and statutory compliance.
+
Tax, Compliance and Statutory Contour
Mandatory tax, regulatory and statutory compliance.
Objective and L2 processes
Meet external obligations while maintaining management focus.
- Tax calendar and preparation of mandatory reports.
- Monitoring of requirements and support for audits and inspections.
- Document control and coordination with advisers.
Outputs and stakeholders
- Outputs: tax returns, statutory reports and audit support packs.
- Stakeholders: CFO, tax team, regulators and auditors.
Related resources
Risk Management and Internal Controls
A distinct domain and a cross-functional principle for all finance processes.
+
Risk Management and Internal Controls
A distinct domain and a cross-functional principle for all finance processes.
Objective and L2 processes
Reduce losses, errors and breaches through systematic risk and control management.
- Risk assessment and a control matrix.
- Limits, authority levels, segregation of duties, fraud and duplicate controls.
- Early warning indicators, testing and remediation tracking.
Outputs and stakeholders
- Outputs: risk and control matrix, incident logs and remediation plans.
- Stakeholders: CFO, internal control, CEO and functional leaders.
Related resources
Corporate Finance, Banks and Stakeholder Communications
External financial communications, investment cases and debt management.
+
Corporate Finance, Banks and Stakeholder Communications
External financial communications, investment cases and debt management.
Objective and L2 processes
Support relationships with banks, lenders and shareholders, and strategic financial initiatives.
- Bank reporting packs, covenant reporting and funding communications.
- Investment cases, CAPEX and financing models.
- M&A, restructurings and stakeholder materials.
Outputs and stakeholders
- Outputs: bank reporting packs, covenant reports, investment memos and board materials.
- Stakeholders: CEO, CFO, banks, lenders and shareholders.
Related resources
Finance Data, Systems and Governance
Ownership of data, integrations, definitions and the change roadmap.
+
Finance Data, Systems and Governance
Ownership of data, integrations, definitions and the change roadmap.
Objective and L2 processes
Ensure consistent data, rules, systems and mechanisms for developing the finance function.
- Data architecture, master data governance and mappings.
- ERP / CRM / bank-client / BI integration controls.
- Workflow governance, policy documentation and the automation roadmap.
Outputs and stakeholders
- Outputs: data dictionary, integration logs and process governance pack.
- Stakeholders: CFO, finance teams, IT / data teams and process owners.
Related resources
Cross-functional layers
These principles do not belong to a single domain: they must be embedded throughout the finance department's operating model.
Data and governance
Consistent definitions, cross-system mappings, data quality controls and a formal CFO office calendar provide the foundation for scaling AI.