Managerial financial reporting in project business
Helimo, Pekka (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024112730544
https://urn.fi/URN:NBN:fi:amk-2024112730544
Tiivistelmä
This thesis explores the characteristics of managerial financial reporting in a project-based business, with a specific focus on the case company VEO Group. The objective of the study was to develop a practical framework, which can be used to define the relevant data, dimensions and reporting methods, and to apply this framework by developing a practical recommendation for the case company. The recommendation serves the ultimate goal of the study, which is improving the company’s ability of making data-driven decisions.
The chosen research methodology was a case study. The research was done by combining a theoretical analysis with the case company’s practices and interests. Data was collected by a comprehensive literature review and expert interviews. The practical part of the research involved developing a framework, which included conceptual framework model and a tool for implementing it in practice. An improvement proposal was tailored to the case company business model and organizational structure using the created framework. Input for the practical application was collected from the case company’s key personnel and public sources such as webinars, literature, and annual reports.
The results of the research indicate that a carefully planned managerial financial reporting process can significantly enhance a company’s abilities of financial forecasting, risk management, managerial data-driven decision-making and overall financial performance when operating in project business. Managerial financial reporting involves strategic and operational perspectives and is needs to be integrated on the managerial decision-making process of a company. Findings of the study suggest that continuous improvements in managerial financial reporting are essential for a company to remain competitive in project business.
The proposed practical framework includes specific metrics and reporting methods designed to meet the needs of this specific business model. The framework was successfully applied for the development of the case company recommendation. The case company has already begun to evaluate these recommendations, with plans to integrate them into their existing processes.
The chosen research methodology was a case study. The research was done by combining a theoretical analysis with the case company’s practices and interests. Data was collected by a comprehensive literature review and expert interviews. The practical part of the research involved developing a framework, which included conceptual framework model and a tool for implementing it in practice. An improvement proposal was tailored to the case company business model and organizational structure using the created framework. Input for the practical application was collected from the case company’s key personnel and public sources such as webinars, literature, and annual reports.
The results of the research indicate that a carefully planned managerial financial reporting process can significantly enhance a company’s abilities of financial forecasting, risk management, managerial data-driven decision-making and overall financial performance when operating in project business. Managerial financial reporting involves strategic and operational perspectives and is needs to be integrated on the managerial decision-making process of a company. Findings of the study suggest that continuous improvements in managerial financial reporting are essential for a company to remain competitive in project business.
The proposed practical framework includes specific metrics and reporting methods designed to meet the needs of this specific business model. The framework was successfully applied for the development of the case company recommendation. The case company has already begun to evaluate these recommendations, with plans to integrate them into their existing processes.