Financial Management

Transcription

1 Financial Management

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3 Table of Contents Financial Management Overview... 1 Introduction to Financial Management... 1 Strategic Functions Within IT Asset Financial Management... 1 Defining IT Asset Financial Management... 2 Purpose of IT Asset Financial Management... 2 Why Financial Management Relates to IT Asset Management... 2 Implementation Goals for Financial Management... 2 GOAL 1: Invoice Reconciliation... 3 GOAL 2: Chargeback Procedure is in Place... 4 GOAL 3: All Invoices, IT Financial Records, and Contracts are Scanned into a Data Repository... 4 Core Processes for Effective Financial Management... 5 Invoice Reconciliation... 5 Chargeback Procedure is in Place... 5 All Invoices, IT Financial Records, and Contracts are Scanned in a Data Repository... 5 Organizational Commitments... 5 Self-assessment and Action Planning... 6 Measurements and Verifications Examples... 6 Activities and Products... 7 Financial Forecasting Process... 9 Introduction to Financial Forecasting... 9 Defining Forecasting... 9 How Financial Forecasting Relates to ITAM... 9 Historical Data... 9 Current and Past Economic Factors Production Capability Logistics Work Force Availability Sourcing Availability of Capital Business Continuity and Contingency Project Budget i

4 Operational Expense Budget...23 Market Trends...25 Product Availability...26 Standard Upgrade Path...28 Cash Flow...31 Additional Funds Available...33 Reduction in Funds Available...34 Money Supply in the Marketplace...36 Acquisition Process...37 Research and Development...40 Organization s Environment...41 Leadership Changes...43 Litigation...44 Contracts...44 Financial Budgeting Process...47 Introduction to Financial Budgeting...47 Defining Budgeting...47 How Budgeting relates to ITAM...47 Components of a support budget...47 Estimating Cost...50 Support...51 Equipment Costs...55 Outside Services...55 Fixed Asset Database...57 Calculate ROI...59 Maintenance Costs...60 Activity-based Charge Backs...61 Billing Practice Process...63 Introduction to Billing Practices...63 Definition of Billing / Charge Backs...63 How Billing relates to the ITAM...63 Fairness...63 Cycle of Payments...65 Adjustments to the Charge Back Model...66 Contracts and Service License Agreements...67 ii

5 Expectation of Standards Refresh Rates Modification Process Conflict Resolution Scope of Work Who Owns the Technology Development of Internal Accounting Functions Billing Model Justification Process Introduction to Justification of the Billing Model Defining the Justification of the Billing Model How the Justification of the Billing Model Relates to ITAM Justification of Payments Justification of Purchase Workflow of the Justification of the Billing Model Preparation of Financial Auditing for IT in Relation to IT Asset Management The IT Asset Managers Role in the Audit Process What Auditors Want to See What Auditors Want What Auditors Don t Want How an ITAM Can Help (or Hinder) Auditors Governance Action Areas within Governance The ITAM Financial Data Collection and Retention Audit Checklist Audit Planning Audit Testing Audit Testing Processes Audit Testing Steps Risk Assessment Other Areas of Focus that will Affect Both the Data Within the Program and the Validity of the Reporting Reporting the Audit Results Summation of Purpose for Preparing for an Audit Having Open Communications with Auditors Roles and Responsibilities Templates, Workflows and Whitepapers iii

6 Invoice Reconciliation ERP Function Comparison Invoice Reconciliation for Hardware Sample Business Case Sample Spend Summary Personal Computer Use ROI Template Glossary of Terms iv