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Last Mile Strategize Part 2 Official Final


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Last Mile Strategize Part 2 Official Final

  1. 1. Transforming the LAST MILE of FINANCEStrategize:Plan for AutomationPart 2 of a 4 Part SeriesTheresa Clark – VP, Finance TransformationTony DiTomasso, Financial Solution ConsultantMarch 21, 2012
  2. 2. Today’s PresenterTheresa Clark – VP Finance Transformation CPA Former partner of Andersen, LLP and managing Director at BearingPoint Seasoned finance professional with over 20 years of finance experience leading finance transformation, financial close improvement and post merger integration for major companies. Specialist in transforming compliance, reconciliation and close financial processes Member of the American Institute of Certified Public Accountants
  3. 3. Who is Trintech?Trintech is a leadingprovider of integratedsolutions for The Last Mileof Finance.Our solutions optimize theentire Record-to-Reportcycle resulting intransparent financialmeasurement andgovernance. • Over 650 Industry leaders use Trintech • 26 of the Fortune 50 • 100+ of the Fortune 500
  4. 4. What Does Strategize Address? I. The Last Mile – Quick Recap of the Issues STRATEGIZE II. The GoalsPlanning for automating III. Overview of the Transformation Stagesmanual processes. Selection for the Last Mile of Financeof key areas of pain anddetermining required changes IV. Strategize – Making the decisions forin current processes and changeprocedures.  Your Close goals  Compile Close task list  Identify owners, approvers  Set documentation requirements  Establish metrics V. Areas of Focus VI. Lessons Learned by Others
  5. 5. What is the Last Mile of Finance? THE BRIDGE TO REPORTING TRANSPARENCY ACCURACY CONTROLS TIMELINESS InformProcure Scopeto Pay Plan Schedule Perform Manage Report Forecast C Budget GL PrepareOrder to Close Group Plan Local Close & & Cash Close Consolidate Report Comply
  6. 6. The Interdependencies of the Last Mile of Finance Q start Q end 40 + Days -10 days 90 days Recons GL Load Assign & Reconcile & Monitor/Review Report, balances Schedule research /Approve Analyze, Verify Support complete Remind, escalate Operational Recons Performers Load Auto Manage Research & Adjust & Report, Balances match exceptions Resolve Balance Analyze, Support ManagementReviewer/Supervisor Form 10Q 10K Performers Reporting Audit/External Ledger s Import tasks & Schedule tasks Perfor m Monitor Roll forward Prepar e Review Fil e Close + controls Manage Remind issues , escalat Taxonomy Tagging XBRL XBRL e Support Filing in E- Record Complianc Remediat e e Design & Scope Auto Schedule Perform compliance Review & Report & Establish tasks tests Monitor Certify controls Redesign E- Record
  7. 7. What are the Goals of Finance Transformation? Business Goal: An Automated and Standardized Finance Process Confident Streamlined Agile Accuracy of the Standardize and SupportiveFoundational Numbers Consolidate Processes Environment for• Monitor key controls • Focus on value-added activities Enterprise Growth• Enterprise collaboration • Improve service levels • Rapid integration of acquisitions• Better information = better • Train employees faster • Smoother transitions decisions • Automation = more work by • Framework to support new• Isolate and escalate issues rapidly fewer people including SSC’s initiatives (XBRL, IFRS, TAX) Lack visibility into processes Cycle times too long Lack flexibility to absorb Desire for top down Overlapping requirements changes approach Stressed personnel Turnover is disruptive Unacceptable level of risk Uncertain Inefficient Inflexible The Drivers of Change
  8. 8. Polling Question #1What is your company’s primary goal for changing the close process?a. Increase confidenceb. Increase efficiencyc. Increase agility
  9. 9. Where are We Within the Last Mile of Finance Efficiency, Transparency, Quality Maturity Model? TODAY WE ARE HERE Optimize Energize Fully‐Automated & Optimized • Best practices • (Automated)  Strategize Semi‐Automated  preventive controls  Process embedded into  • Semi‐automated  business process Manual Process  • Consolidated view into  controls Analyze Improvements • Point solutions for  close & reporting  • (Manual) detective  collaboration (e.g.  process controls & procedures SharePoint), process  • Fully integrated with  • Manual process  XBRL, close, exception  Manual  Cost of Finance, Risk management and  improvements compliance mgt, reconciliations,  Processes • Legacy apps and compliance • Lack of controls across • Disjointed processes • Heavy spreadsheet  • Automated and  data streams• Legacy apps use collaborative global  • No single view into • Heavy spreadsheet  • Email, Word, shared  workflow close and reporting  use drives • Real‐time process  process• Email, Word, shared  optimization drives
  10. 10. Strategize: Goals for Last Mile What Does Success Look Likes for OUR COMPANY  Establish Pain Points & Areas Ripe for Change – Unacceptable number of PAJES – Overtime running 5% above company average – Reporting turnover creating risk of missing deadlines  Have an Agreed Upon Set of Success Factors: Interim and Longer Term – Standard reconciliation template used end of q2 – Close task compiled and set up week 3 – 10 hour days, 1 weekend day, year 1 – Satisfaction ratings up 2 points
  11. 11. Strategize: Set Close Tasks Coalesce on a Single Set of Close Tasks  Determine scope of tasks – key tasks or all tasks  Establish task locations – geographies, locations, functions  Consider if managing tasks in a system is required for all tasks on the list – e.g. non financial impacting administrative tasks
  12. 12. Polling Question #2How many close tasks does your company have?a. 10-75b. 76-150c. 151-300d. 300+
  13. 13. Strategize: Approvals Set the Task Approval Requirements  Establish the required level of approval for each task.  Determine the path for how exception processes are managed?  Consider if there are tasks that do not require approval?
  14. 14. Strategize: Documentation Establish Standards for Documentation  Determine which tasks require documentation  Create templates for documentation where standard format desired  Set how will documentation be associated with tasks – via link or saved independently  Understand what documents need to be associated with each task for procedural purposes
  15. 15. Analyze: Close Reporting Create a Process for Items That are Non-Standard  Review the quarterly issues logs and non- recurring items to create a set of processes to manage non standard events  Define these tasks in the close list  Capture the approval and documentation processes that are associated with non-standard events
  16. 16. Strategize: PerformanceCreate a Set of Metrics for Measuring Resultsand a Set for Improving Processes Set metrics for managing the daily processes and instilling quality and efficiency – % tasks performed on time – Number of tasks by performer (load) – Number of on time tasks by performer – Number of PAJEs Improvement – Work load rebalancing based on log jams – Move key issues first review to senior staff – Increased standardization due to approver lags
  17. 17. Polling Question #3Our company has a set of close metrics that align tightly tothe company’s overall goals?a. Agreeb. Disagreec. We don’t currently have metrics for close process
  18. 18. Typical Areas of Focus: Journal Entries Journal Entries Focus:  Recurring = manually intensive, clerical errors, completeness  Non-recurring = manually intensive, often late in process, approvals and reviews Considerations:  Establish a single process before automation  Document the recurring, including reason, estimates, support, approvals  Decide level of automation and integration desired with ERP
  19. 19. Typical Areas of Focus: Account Reconciliations Account ReconciliationsFocus: Multiple types and methods of reconciling Aging of unreconciled amounts Clear auditable trail of supportConsiderations: Establish a single process before automation Document the recurring, including reason, estimates, support, approvals Decide level of automation and integration desired with ERP
  20. 20. Lessons LearnedApproval Levels – Most tasks require only one approval – Some high risk JE’s require twoHierarchies – Corporate generally needs access to divisional close tasks due to high level of dependencies – Hierarchies need to be carefully established to allow visibility across and down the organizationStandardization – Use templates to enforce standards – Have support attached to tasks – Create the dependencies to increase communicationReporting – Use reports for specific analysis – not dashboards – Have dashboards capture “close meeting report outs”
  21. 21. Questions? Thank you for participating. For further information please contact: (USA) +1 800 416 0075 (EMEA) +44 (0) 207 628 5235 Continue the Conversation – Please register for the second in our new webinar series Part III: Energize: When: Thursday, 4/19/2012 Time: 10:30 am Central Standard Time (Chicago, GMT-06:00) 4:30 pm GMT Time (London, GMT)
  22. 22. Transforming the LAST MILE of FINANCEThank YouTheresa Clark – VP, Finance TransformationTony DiTomasso, Financial Solution Consultant