DGTAX Handbook

HANDBOOK 08

FINANCIAL REPORTING TO HEADQUARTERS

Reports relating to monthly operations, in an excel format of your choice

1. SERVICE DESCRIPTION

Our Financial Reporting to Headquarters / Mother Company Service is dedicated to preparing periodic financial reports for the central offices or parent company of the international group to which the Italian subsidiary belongs.

This is a crucial activity for ensuring data coherence, transparency, and uniformity across all group entities, thereby facilitating consolidation, management control, and strategic planning.

DGTAX prepares monthly or quarterly reports in fully customizable Excel formats, based on templates provided by the parent company or developed in collaboration with the client. The reports typically include:

• Performance Analysis;
• Accounting Reconciliations;
• Key Performance Indicators (KPIs);
• Comparative Schedules and Statements.

2. ACTIVITIES

The service covers all the necessary phases to produce accurate and compliant financial reporting:

• Data Collection and Analysis: gathering and analyzing monthly accounting data;
• Account Reconciliation: reconciling balance sheet accounts and verifying their consistency;
• Statement Preparation: preparing P&L (Profit & Loss), Balance Sheet, and Cash Flow statements;
• Analytical Schedules: preparing detailed analytical schedules (covering revenues, costs, payroll, VAT, capex, etc.);
• Accounting Conversions and Reclassifications: performing necessary conversions and reclassifications according to group standards (e.g., IFRS, US GAAP, or internal formats);
• Variance Analysis: identifying and explaining variances compared to budgets or prior periods;
• KPI Preparation: preparing monthly Key Performance Indicators (KPIs) and performance metrics;
• Advanced File Management: managing files in advanced Excel formats, including formulas, pivot tables, dashboards, and charts;
• Secure Sharing: securely sharing reports with HQ via a dedicated DGTAX portal.

3. REQUIREMENTS AND DEADLINES

The financial reporting is prepared according to the timelines stipulated by the Headquarters/Parent Company:

• Monthly Closing: reports are delivered within 5–10 business days after the month-end, depending on the group’s specific policy;
• Quarterly Reports: typically delivered within 10–15 days after the end of the quarter;
• Ad-Hoc Analysis: provided upon request from the Headquarters or the Group CFO;
• Template Management: updating group templates whenever modifications are introduced.

DGTAX coordinates directly with the HQ team to ensure strict adherence to deadlines, accounting standards, and consolidation schemas.

4. WHAT THE CUSTOMER SHOULD DO

To ensure the successful and timely execution of the service, the Client is required to make the following available:

• Access to Data: access to the Italian subsidiary’s accounting and management data;
• Reporting Templates: any specific templates or instructions mandated by the Headquarters/Parent Company;
• Additional Analysis: details regarding any supplementary analysis requested by the group;
• Planning Information: information concerning budgets, forecasts, and relevant variances;
• Supporting Documentation: documentation necessary to explain significant month-over-month variations.

DGTAX provides standard models and assistance to facilitate the efficient collection and transmission of this data.

5. WHAT WE DO

The DGTAX team processes the accounting data, performs necessary reconciliations, and reclassifies the figures in line with group standards.

We prepare professional, clear, and readily integrable Excel files compatible with the Headquarters’ systems (ERP, consolidation, business intelligence).

Our responsibilities include:

• Report Structure: Building structured and highly readable reports;
• Accuracy Check: Verifying the arithmetic correctness of all calculations;
• Consistency: Ensuring coherence across different reporting periods;
• Variance Explanation: Explaining variances with precise and punctual supplementary notes;

The reports are uploaded to a secure, GDPR-compliant DGTAX portal, where the Headquarters can download the files in real time.

If requested, DGTAX can participate in periodic calls with the HQ or group controllers to discuss the results and any deviations.n, significantly reducing the risk of errors and data breaches.

6. Outputs PROVIDED

The service provides the following key deliverables:

• Monthly Excel Reports: Comprehensive P&L (Profit & Loss), Balance Sheet, and Cash Flow statements;
• Detailed Schedules and Analysis: Supporting documentation providing detailed analysis;
• KPI Dashboards: Key Performance Indicator dashboards and essential metrics;
• Consolidated Files: Files consolidated and reconciled according to HQ standards;
• Explanatory Notes: Detailed notes specifically prepared for Headquarters;
• Structured Digital Archive: A structured digital archive of all submitted reports.Mandatory Communications prepared and submitted.

7. NOTES AND RECOMMENDATIONS

Effective reporting necessitates having accounting data that is both up-to-date and fully reconciled.

It is crucial to maintain constant dialogue with the Headquarters to ensure that the Excel formats remain consistent with the group’s evolving reporting requirements.

We also advise using a single, standardized template throughout the year. This practice greatly facilitates comparison across periods and seamless integration into the HQ systems.

DGTAX can also provide assistance in creating or optimizing these reporting templates, thereby enhancing readability and automating calculations.