Close, Consolidate and Reporting Cycle.pptx

Click to add text
© 2014 IBM Corporation
Close, Consolidate and Reporting
Cycle
Presenter: Paul Young CPA CGA
Senior Customer Success Manager
Date: January 1, 2022

Click to add text
Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Supply Chain Management

• CFO area of Focus
• 2020 focus of Business
• 2021 / Focus
• Sustainability Reporting
• CPA/USA – Reporting
• Self-Reporting Issues
• Regulatory Filing Issues
• Time to close the accounting cycle
• Continuous accounting close
• Other pain points for accounting and finance
• AI and Accounting
• Virtual Close Cycle
• Sales / Forecasting
• Supply Chain
• Analysis and Reporting
• Cognos Controller
• Cognos Analytics / Driving Strategic Decisions
• CloudPaks
• FOPM/FPM solutions
• Risks/audit
• Security / Data Privacy
Agenda

Accounting Trends for 2022
Source - https://www.trintech.com/cadency/blog/2021/11/accounting-trends-2022-changing-
role-finance/
September 9,
2014
1. A greater focus on meeting worker expectations and fostering employee
satisfaction. The latter half of 2021 brought with it a surge in worker
dissatisfaction and resignations from organizations across the country.
2. Heightened regulatory scrutiny into DE&I and corporate ESG policy.
Alongside the re-examination of worker satisfaction and benefits has been the
emphasis on the importance of diversity equity, and inclusion (DE&I) and
environmental and social governance (ESG) initiatives.
3. Though the supply chain is expected to level out, inflation will continue
to rise. Though the supply chain most likely will not return to complete
normalcy in 2022, it is expected that there will be a more stable supply.

Continue Reporting
https://www.linkedin.com/posts/paul-young-055632b_continuous-intelligence-in-the-
public-sector-activity-6991008098865868800-yM-
C?utm_source=share&utm_medium=member_desktop
This ties nicely into my work on the public sector governance model through better
management of data and AI. I also like to see all levels of government move their
internal audit to audit analytics as well as using key tools like Maximo as it relates to
asset management.
Here is my work - https://ibm.box.com/s/7xw1qx6jn7tpfx0uuf9f4mgzx3bzf68y
September 9,
2014

5 Ways Technology can improve an Organization Strategy for 2022
and beyond
Source - https://www.accountingweb.com/practice/practice-excellence/5-ways-to-use-tech-to-
improve-strategy-in-2022
September 9,
2014
1. Reinvent outdated processes
2. Align technology to deliver complete solutions
3. Leverage data
4. Implement intelligence into your business
5. Determine your AI strategy

September 9,
2014
Area of Focus by CFO
Source - https://www.gtnews.com/

September 9,
2014
Accountants: Worry about adapting, not being replaced
Source - https://www.accountingtoday.com/list/accountants-worry-about-adapting-not-being-
replaced?position=editorial_1&campaignname=V2_ACT_Daily_20210503-
11012021&utm_source=newsletter&utm_medium=email&utm_campaign=V2_ACT_Daily_20210503%2B%27-
%27%2B11012021&bt_ee=6pJkOCQr7z2x9tdZgY0yamLBHpPxg3cYjunSIqZjD8fmsD9iNcB5naWjIDkVwsWa&bt_ts=1635761175878
1. Moving to the cloud
2. Shift to remote work
3. The growing requirements for real-time data exchange and reporting
4. Emerging tech enabling higher-value work
5. Legislative and regulatory change
1. Changes in taxation rules
2. ESG reporting
3. Other rule changes and regulatory filing requirements

September 9,
2014
https://www.forbes.com/sites/jeffthomson/2020/12/18/speed
ing-towards-transformation-2021-trends-in-finance-and-
accounting/?sh=6ed4329834ab
1. Automation will no longer be debated. Routine, rules-based tasks will
be automated. This was true before the pandemic, with over 50% of finance
and accounting professionals indicating automation would impact how their
company performed its work in the next one to two years in a Deloitte/IMA
survey released in August 2020.
2. Remote working will become the norm for finance teams. According to a
June 2020 PwC survey, “54% of CFOs plan to make remote work a
permanent option.” Facilitating successful remote working arrangements is a
two-part process
3. Environment, Social and Governance (ESG) reporting will become
more important. An already-accelerating trend pre-COVID-19, ESG will
gain new focus, fulfilling consumer mandates for more corporate
responsibility, but also serving as an important organizational risk mitigation
tool.
Financial Transformation / 2021

September 9,
2014
https://www.forbes.com/sites/jeffthomson/2020/12/18/speed
ing-towards-transformation-2021-trends-in-finance-and-
accounting/?sh=6ed4329834ab
4. Enterprise Risk Management (ERM) becomes a finance accountability. If
there’s one thing the Covid-19 pandemic has taught is, it’s that a crisis can
emerge suddenly and overtake all one’s plans and expectations for the future
5. Diversity, Equity and Inclusion (DE&I) will be a competitive
differentiator, in addition to being the right thing to do from a core values
perspective. In 2019 The Wall Street Journal ranked companies in the S&P 500
by levels of diversity and inclusion. They found the top 20 companies (or those
with the highest scores for DE&I) had better operating results on average than
the lowest-scoring firms
6. Upskilling is the call-to-action. IMA recently conducted a global survey of
finance and accounting professionals, posing questions related to COVID-19
impacts on staffing, revenue management, upskilling and reskilling.
Financial Transformation / 2021

September 9,
2014
Source - https://bluebackglobal.com/cfo-challenges-going-into-q4-
and-q1-of-2021/
CFO Challenges Going into Q4 and Q1 of 2021
1. Change Management - One of the major CFO challenges the pandemic created is a pressing need for
change management. Most companies are now forced to recognize they need new digital technologies,
skilled talent, and innovation, but that doesn’t mean change comes easily.
2. Creating an Agile Business Model - The pandemic has clearly demonstrated the need for company agility.
Businesses without a Plan B scrambled to recovered and some could not operate at all. Those that could
quickly adapt to a work-from-home strategy or a blend of in-house and remote work had a distinct
advantage over their competitors. In the long run, agility could determine whether a company survives
during and after the pandemic.
3. Automating Processes - Most CFOs recognize automation of routine tasks such as accounting, payroll,
HR, and compliance can offer savings. Some also see the benefits of harnessing the power of automation
for a stronger, more effective organization.
4. Analytics & Long-Term Planning - According to the TCS 2020 CFO Study, long-term strategic planning is a
development priority for CFOs. Subsequently, they believe superior analytic skills will deliver the most
value in the next five years. An integral part of long-term planning and a company’s response to change is
access to in-depth financial reporting. More than ever, companies need accurate, real-time data to create
accountability, improve levels of performance, and pinpoint where to best focus their talent and leaders.
By connecting finances with operational data, non-finance leaders can also see benefits for more
informed decisions.
5. International Complexity - The pandemic has drastically increased the complexity of operating across
borders. Legislative changes occur at lightning speed across jurisdictions and can change frequently too,
making compliance an even greater challenge for the CFO than in the past.

September 9,
2014
Source - https://www.wealthprofessional.ca/investments/socially-
responsible-investing/most-cpas-accept-the-esg-accounting-
challenge/337087
Most CPAs accept the ESG accounting challenge

September 9,
2014
ESG Standard Update

September 9,
2014
Top Accounting Trends

September 9,
2014
Environmental, Social, and Governance Reporting
Financial professionals are confronting some big obstacles when it comes to environmental,
social and governance reporting, according to a new survey, including competing and
sometimes conflicting disclosure frameworks, reporting methodologies and stakeholder
demands.
The report, released Thursday by Financial Executives International’s Financial Education &
Research Foundation, polled 53 chief accounting officers and controllers from some of the
largest U.S. companies, and found that 53% of the respondents indicated they had not yet
started to integrate ESG reporting with their financial reporting, while 43% said they had only
just started to do so. Data is the biggest single challenge to ESG reporting, with questions
related to collection, collation, analysis and control among the biggest ESG-related data
questions. The plethora of competing standards and frameworks is also a big challenge, with
85% of companies using multiple ESG reporting frameworks. Finance professionals reported
they had a hard time hearing through all the noise and providing relevant, concise ESG metrics
in telling their organization’s ESG story.
Source - https://www.accountingtoday.com/news/accountants-face-challenges-with-esg-
reporting
Templates: https://ibm.box.com/s/nsbds2s5v8znpwqzc03p9urykbat38w0
Presentation: https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce

September 9,
2014
CFOs are not ready for an
era of self-service reporting

September 9,
2014
Accounting and Big Data
https://www.accountingtoday.com/opinion/how-big-data-
can-help-businesses-achieve-compliance-in-2021

September 9,
2014
2020 Focus by Business
Source - https://smallbiztrends.com/2019/10/6-key-challenges-small-
businesses-need-to-address-soon.html
1. Cyberattacks Continue to Run Rampant
2. Consumers Look for Engaging Content on Social Media
3. Stakeholders Want to Be Educated
4. Distributed Teams Require Collaborative Task Management
5. People Want to Do Business with Thought Leaders
6. Customers Demand Fast Responses to Inquiries and Concerns

September 9,
2014
CPA / Business Challenges
Source - https://www.journalofaccountancy.com/issues/2019/dec/cpa-accounting-issues-for-2020.html
• Less emphasis on new standard changes (i.e. leases, credit losses, etc.)
• AI/RPA - Accountants have heard for years that emerging technologies such as
blockchain and artificial intelligence (AI) are going to radically reshape the
profession. The reality has yet to live up to the hype, but major strides could be
made in 2020 on a couple of fronts. The first of those is the continued
development and adoption of robotic process automation (RPA). Most current
RPA iterations are perhaps best described as Microsoft Excel macros on
steroids. These RPA "bots" can watch a human perform a multistage process
and then repeat that process. Unlike Excel macros, however, RPA can perform
these processes across multiple applications.
• 5G Technology - "2020 will be a breakout year for 5G, as handset manufacturers
begin to make a 5G chipset standard equipment," said Rick Richardson,
CPA/CITP, CGMA, founder and CEO of RichardsonMedia & Technologies LLC.
"The major telecommunications companies will continue major deployment of
network coverage.“
• Automation of tax reporting and filing
• More demand for real-time data processing
• More emphasis on advance analytics (data sciences)

September 9,
2014
Statutory reporting falling short

Times it takes to close
The APQC study, which examined close-to-disclose cycle
time for 524 companies with more than $1 billion in revenue,
found that the top 25% were able to complete the entire C-
to-D process in 12 days or less. The median cycle time was
15 days, while the bottom 25% of companies took 18 days
or longer. The worst performers needed up to 25 days to get
the job done.
September 9,
2014
CFO.com – August 2015

SOX and the Cost of Compliance
Source - http://www.journalofaccountancy.com/news/2017/jun/companies-spending-more-
time-on-sox-compliance-201716857.html
September 9,
2014

What can be done to expedite the close
• More automation between ERP systems with reporting systems
• Movement to FOPM and FPM solutions
• Strengthening controls on all aspects of the organization (Ongoing
internal audit programs)
• More integration between systems
• Use of mobile applications to access real-time reporting
• Re-engineering other business processes as part of streamlining the
close, consolidate and reporting cycle
September 9,
2014

What is continuous accounting
Source - http://www.digitalistmag.com/finance/2017/02/17/what-is-continuous-accounting-
04917410
September 9,
2014
• Continuous accounting is a paradigm shift for finance professionals
responsible for closing the books and producing financial
statements. “The way we’ve always done it” is to wait until period
end, work long hours, and get the end of the period reporting done.
This traditional way of doing things is based on repeating what’s
been done period after period in the past. The reports are getting
done so if it ain’t broke, don’t fix it. Change is hard.
• The concept of continuous accounting is not waiting until the end of
the period to execute the multiple tasks that need to happen to close
the books. With the advancements in technology over the past
years, it is now possible to execute tasks required for the close
throughout the period. Similar to the concept of a soft close,
continuous accounting provides better visibility into financial results
throughout the period – live and in real time.

Risk Management
September 9,
2014
• Risk Management
• The total global expenditure on risk IT systems and services by financial institutions
(FIs) will be $70bn during 2016.
• The two biggest areas for investment are in the risk governance and integration field
($22.4bn), which is being driven by compliance demands, stress test reporting
obligations and risk data aggregation requirements, and financial crime risk, which
follows closely behind in terms of growth, as cyber and fraud risks multiply and
converge.
• The Chartis 2016 Global Risk IT Expenditure report aggregates all of the firm’s 2015
research to derive a global risk IT spend. The market sizing exercise by Chartis is
based on a comprehensive bottom up methodology driven by thousands of demand
side data points. Furthermore, the analysis has been validated by top-down data from
hundreds of technology vendors and consulting firms.
The report provides an overview of the risk technology market and forecasts 2016
expenditure for specific risk categories, examining the regulatory, operational and
reputational drivers for different sizes of financial institution (FI) and across different
regions

Internal Audit
September 9,
2014

AI and Accounting
September 9,
2014
Source - https://www.cfotechoutlook.com/news/artificial-intelligence-will-
transform-the-accounting-industry-nid-451.html

Virtual Close Cycle
September 9,
2014
Source - www2.deloitte.com

Sales / Forecasting
September 9,
2014

Supply Chain
September 9,
2014
Currently, supply chains require unprecedented efficiency and agility in order to react to quickly
changing network conditions, as exemplified by the reaction to the pandemic. There is a shift
among shipping organizations to embrace a shift to digitalize their largely physical world.
In a report by Deloitte, “Holistic Decision-Making: Creating tomorrow’s more intelligent
movement of goods network,” the consulting firm provides insights into how shipping
organizations are undertaking a journey to digitalize the physical world and power more
intelligent movement of goods networks through cognitive technologies
https://www.mhlnews.com/technology-automation/article/21156062/data-driving-
decisionmaking-in-the-supply-chain?oly_enc_id=7930I4506489J2B
Here is my work on supply chain:
Supply Chain and Analytics - https://ibm.box.com/s/63aqf8jo004v2bo5f8cf6eppgglhbvs5
Continuous Intelligent Planning - https://newsroom.ibm.com/CIP-supply-chain
Decision Optimization and Planning Analytics - https://www.youtube.com/watch?v=7ZYguYvluFI
Cloudpaks - https://cloud.ibm.com/docs/openshift?topic=openshift-cs_uc_health
Sustainable Reporting - https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce
Guardian Security - https://www.ibm.com/security/data-security
GRC, Security, and Data Governance - https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76

Analysis and Reporting
September 9,
2014

Driving Strategic Decisions
September 9,
2014

Cognos Controller
September 9,
2014

Improving Cash Flow
Management
• Cash Flow Management -
https://quebit.com/who-we-are/video-
catalog/?wchannelid=q5ak7vtvff&wmediai
d=c3wxllij8i
• Cash Flow Management -
https://www.acgi.com/blog/integrated-
cash-budget
•

Watson and automation of the close cycle
September 9,
2014

Watson and Retail (example)
September 9,
2014

Cloud Pak / Containerization
September 9,
2014

Cloud Pak / Modern Analytic Environment
September 9,
2014

GRC and Risk Management
September 9,
2014
Here is my work on automating Internal Audit as part Risk Mitigation
- https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76
OpenPages -
https://ibm.box.com/s/3ndbvily5wlxo9v8fzqfqq2hl12r6dv4

ESG Reporting
September 9,
2014
Link: https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce

Close, Consolidate, and Reporting
September 9,
2014

Weather Analytics and Services
September 9,
2014
Blog – Weather Services and Analytics integration with Data and AI
The role of weather data will continue to play a key role with private and public sector
forecasting, budgeting, and reporting cycles. This link discusses weather analytics and
services as part of integrating those areas with Data and AI as part of better managing
climate change-related issues.
https://ibm.box.com/s/p9yzecfcp956l2d7jh25uflo3q8uof6j

Monitoring / Risk Management
September 9,
2014
Blog – IBM Maximo with IBM Planning
Analytics -
https://ibm.box.com/s/ow662tdpto1c1p6d9u2
waqxwli40x0la

Security and Data Protection
September 9,
2014
More than ever before, as pandemic conditions persist, the threat of data breaches and cyberattacks
continues to grow.
COVID-19 has permanently changed organizational culture and behavior. Recognizing these changes
is the first in a series of steps to mitigate them once this pandemic end, and before the next.
1. Working from home
2. Meeting virtually
3. Keeping data private
4. Redefining culture
5. Managing and controlling transformation
https://www.canadianmanufacturing.com/features/5-ways-the-covid-19-pandemic-has-forever-
changed-cybersecurity/
I have written many blogs on security:
Guardian/IBM - https://www.ibm.com/security/data-security
GRC / OpenPages – Best Practices /
https://www.ibm.com/support/knowledgecenter/SSFUEU_7.3.0/com.ibm.swg.ba.cognos.administra
tors_guide.7.3.0.doc/c_op_adm_best_intro2.html or
https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76
Close, consolidate, and reporting - https://ibm.box.com/s/i7efp948qvb5l8bt96y8sigsup8yes2u
MAAS360 - https://www.ibm.com/security/mobile
IBM Security Products - https://www.ibm.com/security/products

Planning Analytics Scorecard and Workbooks
September 9,
2014
1. Creating Scorecards - https://www.youtube.com/watch?v=cg09IMF8uFo
2. Charts - https://www.youtube.com/watch?v=cg09IMF8uFo
3. Charts - https://revelwood.com/ibm-planning-analytics-tips-tricks-visualizing-data-pie-
charts/
4. https://pmsquare.com/analytics-blog/2019/9/3/planninganalyticsoverview “Starting
with a basic cube view, a user doesn’t need to enlist a report developer to produce an
on-screen crosstab, chart or combinations or both.”
5. Creation of the metrics cube -
https://www.ibm.com/support/knowledgecenter/SSD29G_2.0.0/com.ibm.swg.ba.cog
nos.tm1_prism_gs.2.0.0.doc/t_prism_working_scorecards.html
6. Scorecards /metrics -
https://www.ibm.com/support/knowledgecenter/SSD29G_2.0.0/com.ibm.swg.ba.cog
nos.pa_trial.2.0.0.doc/c_prism_scorecard.html
7. Creation of scorecards - https://blog.octanesolutions.com.au/a-tm1-guide-on-how-to-
for-dummies
8. PA users can work with scorecards - https://www.youtube.com/watch?v=AB3tzTeKULQ

Cloudpak for Data
September 9,
2014

September 9,
2014
• Contact information
• Paul Young (email: paul.young@ca.ibm.com)
• IBM AI
• https://www.ibm.com/analytics/
• IBM Close, Consolidating and Reporting, Risk and Planning Analytics
• http://www.ibm.com/analytics/us/en/business/financial-reporting/
• http://www-03.ibm.com/software/products/en/planning-analytics
• http://www.ibm.com/analytics/us/en/business/governance-risk-
compliance/
• Planning Analytics Workspace -
https://www.youtube.com/watch?v=gGYBqvSboAg

Close, Consolidate and Reporting Cycle.pptx

Recommended

Recommended

More Related Content

Similar to Close, Consolidate and Reporting Cycle.pptx

Similar to Close, Consolidate and Reporting Cycle.pptx (20)

More from paul young cpa, cga

More from paul young cpa, cga (20)

Recently uploaded

Recently uploaded (20)

Close, Consolidate and Reporting Cycle.pptx

Editor's Notes