PFC development and operation
The PFC – report contains ALL financial data about the business, therefore PFC – report is strictly confidential. The official accountant should not be involved in the preparation of PFC reports.
PFC – report must be prepared by the businessman’s trusted financial adviser (the adviser must be a third party, must not be involved in the business and have no contact with the businessman’s office staff). The main functions of a financial advisor:
– development of financial schemes for doing business
– development of a specific PFC – system
– operation of the PFC – system (based on the input of primary data on monetary transactions)
– daily preparation of PFC – report
– preparation of comments on the dynamics of changes in net profit and other parameters of the financial state.
PFC reports cannot be prepared using official accounting software. PFC – the system is developed separately for a specific business (taking into account the specific features of the business).
Development is carried out as follows:
– development of a demo version of PFC – systems
– development of a working version of the PFC – system.
The working version of the PFC – system is being developed in stages. Each PFC – subsystem is put into operation immediately after the completion of development (without waiting for the completion of the development of subsequent subsystems).
PFC consists of two subsystems:
– Financial bookkeeping – ensures the formation and daily modification of a specialized database containing data on all financial transactions
– Primary financial reporting – provides the generation of reports that were described above.
The operation of the PFC consists in the daily conduct of Financial bookkeeping, the formation of Financial reports and sending reports to the businessman (by anonymous e-mail).
The PFC is operated on a dedicated workstation (by a businessman’s trusted financial advisor). The workstation is a regular desktop personal computer with specialized software installed.
A businessman can view reports on any computer with Microsoft Excel and Word installed.
The PFC system can (and should) be used as a basis for building advanced financial management systems and conducting work in the field of Data science (As you know, Data science is the study of data to extract meaningful information for business. This is an interdisciplinary approach that combines the principles and methods from the fields of mathematics, statistics, artificial intelligence, and computing to analyze large amounts of data (this analysis helps data scientists ask and answer questions, such as what happened, why it happened, what will happen, and what can be done with the results).