Take a peek behind the curtains – What goes on in Soihtu’s financial services?

Blog / 28.1.2022

Article picture: Anssi Kumpula

Text: Kati Lehtolahti  | Picture: Petteri Kivimäki

Many routine tasks that have precise schedules based on monthly and yearly cycles are a part of everyday life in the financial services. Budgeting and annual accounts create busy times for the financial team. For us, the new year does not begin in January but after summer holidays in August or September when we start budgeting. At the turn of the year, we move to time for annual accounts. While during the midwinter we have long days at work, in the spring and summer we have a moment to take breath before the budgeting next autumn and the end of the year.

Autumn is time for budgeting

When the summer holidays are over in August or September, we already turn our thoughts to the next year by beginning budgeting that is, creating a budget for the next year. To get budgeting in progress, we need to think where money is going to come from and how much and for what it is going to be used. In the process, among other things, financial statements, investment plans and depreciation programs but also information about rising prices of, for example, electricity or waste management are of help. In the JYY group also other staff members and experts help in budgeting, but the focus of budgeting for the financial team are salaries for next year, depreciations, loan payments and other common and administration costs.

The first version of the budget is reviewed by the board of executives of JYY after which necessary changes are made for example by changing yield and expense expectations. The common budget of Soihtu and JYY is confirmed in a meeting of the Council of Representatives of JYY in November after which the budget is observed during the next year by accounting and reporting.

Annual accounts at the turn of the year

Once the budget is finished, we turn our thoughts to the time for annual accounts which takes place after the turn of the year. This starts by making sure that we get all necessary certificates and documents, and outlining a schedule together with the financial team, partners, and auditors. The annual accounts are supposed to tell how the financial year that just ended has gone: are we on the plus or minus side.

The period of time for annual accounts is perhaps the busiest time for the financial time because the normal, monthly tasks are also tended to alongside the annual accounts. Annual accounts begin by closing accounting for December, followed by gathering and working on the annual accounts themselves, writing an annual report and the culmination of the year aka getting the third degree: the audit. The annual accounts period ends in April in general meetings, by confirming the financial statements and filling in tax returns.

What else goes on during a year?

Soihtu’s financial team handles purchase, sales, and rent ledgers of JYY and its subsidiaries (7 pcs), calculation of salaries, ordering payments, HR matters, monthly accounting, reporting and observation of budgets and additionally administrative tasks such as submitting reports to relevant authorities and filing.

The financial team also handles customer service of internal and external customers such as personnel’s questions about salaries and vacations, Soihtu’s tenants’ issues and delays regarding rent payments and refunding payments for example in case a reservation for a space is cancelled, an agreement ends, or possible error conditions of systems occurs.

The writer works as Soihtu’s rent accountant.