Development of System Toolkit for Financial Control in Corporations: Theoretical, Methodological and Practical Aspects

Abstract

A system toolkit for financial control in corporations ensures efficient performance. The study aims to develop and implement a systematic approach to corporate financial control, constantly updating its forms, types and methods and considering current requirements. The study involved the application of general scientific and unique methods, i.e., analysis – including coefficient, synthesis, generalization and detailing, inductive and deductive; selective observation, grouping, formalization, analogy, abstract-logical, monographic, analytical, comparative, economic-statistical, extrapolation, systems thinking; Monte Carlo simulation method, methods for constructing structural and logical diagrams, author’s software for general MS EXCEL and special EXCEL-VBA. The results include a financial controlling system built and implemented based on fundamental and unique principles. It included managed subsystems (accounting, information subsystems, subsystems of planning, budgeting, financial analysis, tax controlling, GAP analysis, forecasting, financial control, security, risk controlling), managing subsystems and methodological support. The critical areas of digitalization of financial controlling in corporations for the current period are identified - tax controlling, forecasting of digital operations, services, products, and financial technologies allocated in the accounting and information subsystems and subsystems of financial analysis. The future suggested is the development of independent digital subsystems, integrating the performance of the functional purpose of accounting, information subsystems, subsystems of financial analysis, and tax controlling. The authors determined that one of the primary active forms of risk-controlling conduct in crisis is monitoring manageable indicators’ values, which determines the criteria for “critical” deviations. The authors suggest integrating operational, strategic, predictive, situational controlling, risk control, and self-controlling subsystems based on implementing a universal model for its conduct based on Monte Carlo simulation; researchers identified the risk factors for financial controlling systems in corporations. The authors implemented the method of financial control based on Monte Carlo. It integrated subsystems, methods, tools, and techniques of operational, strategic, predictive and situational controlling, risk controlling, and self-controlling. The toolkit for distributing financial indicators by risk zones and by colour categories according to the “traffic light” principle -“green”, “yellow, ” and “red” zones, in the form of financial tension ratio. Implementing the system toolkit for financial controlling conduct in corporations allows independently developed forms, types, and methods of financial controlling, considering the specifics of a particular business.