Our Areas of Specialism

Currency Risk

Multi-currency Accounting
Identifying, Reporting, and Hedging the risks

Avoiding distortions from Accounting Traditions

The Trading Sector Some risks (E.g. currency) apply to entities in many different sectors.

Many process issues apply to entities in many, if not most, sectors.

Other aspects of our expertise are more tied to the Trading Sector.
If you are in that sector you probably know that fact (although we have seen exceptions!)

Excel Global Top50 in ModelOff 2019
So we know how to do things in Excel (and more importantly: how not to do them, and when a different tool is more appropriate).
The real advantage of this knowledge is the ability to deliver effectively in environments where Excel is dominant, whether historically used well or badly.

And in most environments, to be able to deliver quick wins, which both benefit client staff immediately, and build credibility for larger changes.

Double Entry Definitions "Storyboards" for New Recurring Transactions, for New Systems, for One-off Corporate Restructurings

Yes, we do actually understand how double entry works from first principles (including multiple base currencies).

Straight Through Processes We see some accounting departments where the accounting is done outside the ledger, and only the conclusions entered to the ledger.
Rather like some students approach an exam paper to be an exhibit, with workings not shown.
We deduce that this is where the head of the department has at some stage suffered from trying to explain workings to auditors, and decided to hide workings in the future.
The separate (Excel) and then ledger processes are not Straight-Through.

Other times, all data is just dumped into the system with minimal structure to the labelling.
So any query is answered by extracting a large volume of data, and analysing it from scratch.

A well-designed process can predict most likely queries in advance and captures relevant information at the time of recording.
Then nearly any conceivable query can be answered by merely specifying the parameters required.

A similar logic applies to other systems, whether KYC or Scheduling.

Reconciliations Between your records and those of your counterparties, between your own multiple systems, and between test and actual systems.
To statements from Futures & Options Brokers is a particular specialism of ours.

For one-offs, we use computer programming to deal with volume.
For recurrent reconciliations to be run by your staff after our involvement ends, we specify, test, implement, and hand over.

See also the Excel tool to Match Items from Overlapping Lists

Other Market Risk Exposures Cooling Degree Days (which have a "swap-option-swap" basis), Wastepaper Swaps, how a USD business in Japan or South America has an currency exposure resulting from income tax, etc.
We have seen plenty of different exposures, and are always interested in exploring new ones.

Value at Risk Like so many areas involving statistics, Value at Risk is all too often misunderstood.
Especially when specifying/implementing systems, such misunderstanding can make the results misleading
We understand probability from first principles, and so produce results which are logically solid.

Daily P&L Yes, daily P&L can be reported from a double-entry ledger, which then removes month-end and year-end processes from that part of the business.
For a robust setup, key elements are daily accounting periods, separated ledgers and separate bank accounts (possibly internal).
We have both built and run this.

It cannot be instantly implemented; we can also run and improve the more common Excel-based approach.

System Ownership If a system (or process) has no owner: Who is responsible for it, and how well do you expect it to work?

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