# Finance, Accounting, and Treasury Departments

## **Finance, Accounting, and Treasury Departments Overview**

#### **Strategic Financial Management, Compliance, and Treasury Operations for Mega Construction Projects**

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### **1. Introduction**

At **BEC Arabia**, the **Finance, Accounting, and Treasury Departments** operate as distinct but interconnected units, ensuring **financial stability, compliance, and cost efficiency across multi-billion SAR projects**. Each department has specialized roles that contribute to **accurate financial planning, regulatory compliance, contract finance management, and risk mitigation**.

To maintain financial excellence, we implement **structured financial governance, cash flow optimization, investment management, and audit controls** that align with **Saudi financial regulations, international accounting standards (IFRS, SOCPA), and best practices for mega construction projects**.

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## **Finance Department**

#### **Optimizing Financial Planning, Budget Control, and Project Cost Management**

The **Finance Department at BEC Arabia** plays a strategic role in **financial forecasting, cost management, and investment planning** to ensure financial sustainability and profitability. Our team oversees **financial performance, budget control, liquidity, and capital allocation** for **ongoing and future projects**.

#### **Key Responsibilities:**

* **Financial Planning & Budgeting**
  * Develops **corporate and project-specific financial strategies**.
  * Ensures **project feasibility and budget alignment with business goals**.
  * Reviews **long-term financial planning and capital investments**.
* **Project Cost Control & Variance Analysis**
  * Monitors **budget deviations and cost overruns** to prevent financial risks.
  * Conducts **variance analysis** to assess financial performance and control expenditures.
  * Works closely with **Project Control and Commercial Departments** to align financial planning with execution.
* **Liquidity & Cash Flow Management**
  * Ensures **adequate liquidity for operational and project-specific financial requirements**.
  * Manages **cash flow forecasting to avoid funding gaps or financial strain**.
  * Coordinates with **Treasury to secure credit facilities, optimize cash reserves, and ensure smooth financial operations**.
* **Financial Risk Management & Mitigation**
  * Identifies and mitigates **financial risks, currency fluctuations, and economic uncertainties**.
  * Ensures financial decisions align with **corporate risk management frameworks**.
  * Implements **contingency planning to safeguard against unexpected financial challenges**.

**Technology & Integration:**

* The Finance Department integrates **ERP systems, financial planning tools, and real-time analytics dashboards** to enhance **budget control, cost monitoring, and strategic decision-making**.

**Compliance Benchmark:** **Maintain budget deviations below 5% and ensure full regulatory adherence to financial governance laws.**

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## **Accounting Department**

#### **Ensuring Financial Transparency, Accuracy, and Regulatory Compliance**

The **Accounting Department at BEC Arabia** is responsible for **financial record-keeping, regulatory compliance, tax management, and financial reporting**, ensuring all transactions align with **Saudi and international financial standards**.

#### **Key Responsibilities:**

* **Financial Record-Keeping & Reporting**
  * Maintains **general ledger (GL) accuracy** and structured financial records.
  * Prepares **monthly, quarterly, and annual financial statements**.
  * Ensures financial transparency and adherence to **International Financial Reporting Standards (IFRS) and Saudi SOCPA regulations**.
* **Audit & Internal Controls**
  * Conducts **internal financial audits to maintain data accuracy and compliance**.
  * Ensures all **financial reports align with external audit standards and regulatory expectations**.
  * Implements **fraud prevention mechanisms and financial governance best practices**.
* **Accounts Payable & Accounts Receivable Management**
  * Manages **supplier invoices, payments, and receivables from clients**.
  * Ensures **timely processing of payments** to subcontractors and vendors.
  * Tracks **financial commitments and outstanding receivables** to optimize cash flow.
* **Tax Compliance & VAT Management**
  * Ensures compliance with **Saudi VAT regulations (15%) and corporate taxation policies**.
  * Manages **electronic invoicing (FATOORA) as per Saudi ZATCA requirements**.
  * Submits **tax filings and financial reports on schedule** to avoid penalties.

**Technology & Integration:**

* The Accounting Department integrates **ERP-based financial modules** to **streamline financial reporting, automate invoicing, and track compliance with tax laws**.

**Compliance Benchmark:** **100% accuracy in financial reporting, tax filings, and regulatory compliance audits.**

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## **Treasury Department**

#### **Managing Liquidity, Banking Relations, and Financial Risk for Sustainable Growth**

The **Treasury Department at BEC Arabia** focuses on **liquidity management, investment strategies, banking relationships, and financial risk mitigation**. It ensures the company has **adequate capital, secured credit facilities, and structured financial investments** to support project operations.

#### **Key Responsibilities:**

* **Cash Flow & Liquidity Management**
  * Ensures the company has **sufficient liquidity to meet operational and project-specific financial needs**.
  * Works with **banks and financial institutions to optimize cash reserves**.
  * Implements **cash flow forecasting to prevent shortfalls and financial inefficiencies**.
* **Banking & Credit Facility Management**
  * Maintains strong **banking relationships to secure funding, credit lines, and financial guarantees**.
  * Ensures all transactions are aligned with **Saudi financial regulations and corporate credit policies**.
  * Manages **letter of credit (LC) transactions for international procurement and supplier payments**.
* **Foreign Exchange & Hedging Strategies**
  * Manages currency fluctuations and **forex exposure for international transactions**.
  * Implements **hedging strategies to reduce financial risks in cross-border contracts**.
  * Works closely with Finance to **ensure cost stability for international procurement and contractor payments**.
* **Investment & Capital Structuring**
  * Strategically allocates funds to **maximize returns while maintaining liquidity**.
  * Ensures **capital structuring aligns with long-term financial planning and business growth strategies**.
  * Oversees **financial risk management related to investments, funding, and financial contingencies**.

**Technology & Integration:**

* Treasury operations are managed through **ERP-based treasury modules and integrated financial analytics tools**, ensuring real-time **liquidity tracking, investment monitoring, and risk management**.

**Compliance Benchmark:** **Maintain liquidity ratios above industry standards and ensure 100% compliance with banking and financial risk regulations.**

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## **Conclusion**

The **Finance, Accounting, and Treasury Departments at BEC Arabia** are essential pillars of the company’s financial sustainability. Together, they ensure:

* **Strategic financial planning and cost control** for mega construction projects.
* **Full compliance with international and Saudi financial regulations, IFRS, and SOCPA.**
* **Efficient cash flow and liquidity management** to support project execution.
* **Structured banking relations, credit management, and risk mitigation strategies.**
* **Integration of digital financial solutions for data-driven decision-making and operational efficiency.**

By implementing **structured financial governance, investment planning, and compliance strategies**, BEC Arabia ensures **sustainable financial health, profitability, and strong financial positioning in the construction industry**.
