Effective Financial closing & Management reporting is one of the must have Capabilities of a Finance professional and CFO which is very important for "Optimizing Finance Operation" to lead the Finance head and company to a world Class Finance Performance
Drones are revolutionizing the field of accounting by providing new efficiencies. They can conduct accurate inventory counts of large warehouses quickly, capture aerial footage of physical assets to remotely assess their condition for audits, and automate tasks to reduce labor costs and improve productivity. While drones offer advantages, businesses must comply with aviation and privacy regulations to ensure their ethical and legal use in accounting practices.
This document provides an introduction to financial statement analysis. It discusses the key types of financial statements, including the income statement, balance sheet, statement of changes in owner's equity, and statement of changes in financial position. It also outlines different classifications and techniques for analyzing financial statements, such as external vs internal analysis, horizontal vs vertical analysis, comparative statement analysis, trend analysis, common size analysis, funds flow analysis, cash flow analysis, and ratio analysis. The overall purpose is to introduce the reader to how financial statements are constructed and various methods for evaluating the financial and operational performance of a business based on its financial reporting.
This document provides an overview of key topics in Chapter 7 of an accounting textbook, including:
- The components and purpose of an accounting information system (AIS), including inputting data, processing transactions, aggregating data, and presenting financial statements.
- Special journals used in accounting like general and subsidiary ledgers.
- Career paths for individuals with joint education in accounting and information systems like data analytics, artificial intelligence, and forensic accounting.
Advansed Accounting Ch 1: The Equity Method of Accounting for InvestmentsAbdulkadir Molla
This document discusses the equity method of accounting for investments. It covers several key points:
1. The equity method is used when an investor has significant influence over an investee, usually through owning 20-50% of the investee's voting stock.
2. Under the equity method, the investment is initially recorded at cost. The carrying amount is then increased or decreased to recognize the investor's share of the investee's earnings or losses after acquisition.
3. Journal entries are made to increase the investment for the investor's share of earnings, and decrease it for dividends received from the investee. This matches the investor's income recognition with that of the investee.
4. There may
Management accounting provides accounting information to managers within organizations to help them make informed business decisions. It involves identifying, measuring, analyzing, and communicating financial and non-financial information. The key functions of management accounting are to modify raw accounting data, interpret financial analyses, and assist with management control through tools like budgeting and performance analysis to evaluate operations and fix issues. Management accounting differs from financial accounting in its focus on internal users, future orientation, and inclusion of both monetary and non-monetary information to support management planning, implementation, and decision-making.
This document provides a list of shortcut keys and standard transaction codes for accounts payable in SAP FICO. It includes transaction codes for document entry, accounts, master records, periodic processing, and useful reports. Standard transaction codes are provided for invoice entry, credit memos, invoice parking, payments, account display and changes, vendor master data, interest calculation, dunning, and balance confirmation. Periodic tasks like payment runs, recurring entries, and foreign currency valuation are also covered. Finally, the document lists useful accounts payable and accounts receivable reports for balances, open items, payments, and tax information.
The SAP Financial Accounting (FI) module provides integrated, real-time functionality for processing financial transactions. It consists of several sub-modules including General Ledger, Accounts Receivable, Accounts Payable, and Fixed Assets. These sub-modules are integrated with other SAP modules like Sales and Distribution, Materials Management, and Treasury. Integration provides benefits like timely access to information, flexibility, elimination of duplicate entries, and increased visibility across the business.
Reinventing the Record-to-Report Process for Worry-Free Governance, Risk & Co...Proformative, Inc.
Video & Slides: http://www.proformative.com/events/reinventing-record-report-process-worry-free-governance-risk-compliance
Statutory financial reporting and filing has experienced profound change of late. Unrelenting regulatory pressure, shortened deadlines, digital mandates, and accounting complexity make the Record-to-Report (R2R) process extremely expensive, inefficient, and fraught with risk for the Office of the CFO. This educational session will focus on highlighting the current state of the record-to-report process and understanding the expense impact of R2R on the bottom line. It will also show attendees how to identify critical R2R efficiency opportunities while minimizing risk across the financial close, compliance and disclosure management efforts. Lastly, attendees will learn best practices and things to avoid in the R2R process.
Speakers:
Mike Duderich, Finance Director, Americas R2R Operations, Unilever
Ken Fritz, Executive Vice President, Trintech
Presentation delivered at CFO Dimensions 2013 - www.cfodimensions.com
Track: Governance, Risk, Compliance | Session: 1
Drones are revolutionizing the field of accounting by providing new efficiencies. They can conduct accurate inventory counts of large warehouses quickly, capture aerial footage of physical assets to remotely assess their condition for audits, and automate tasks to reduce labor costs and improve productivity. While drones offer advantages, businesses must comply with aviation and privacy regulations to ensure their ethical and legal use in accounting practices.
This document provides an introduction to financial statement analysis. It discusses the key types of financial statements, including the income statement, balance sheet, statement of changes in owner's equity, and statement of changes in financial position. It also outlines different classifications and techniques for analyzing financial statements, such as external vs internal analysis, horizontal vs vertical analysis, comparative statement analysis, trend analysis, common size analysis, funds flow analysis, cash flow analysis, and ratio analysis. The overall purpose is to introduce the reader to how financial statements are constructed and various methods for evaluating the financial and operational performance of a business based on its financial reporting.
This document provides an overview of key topics in Chapter 7 of an accounting textbook, including:
- The components and purpose of an accounting information system (AIS), including inputting data, processing transactions, aggregating data, and presenting financial statements.
- Special journals used in accounting like general and subsidiary ledgers.
- Career paths for individuals with joint education in accounting and information systems like data analytics, artificial intelligence, and forensic accounting.
Advansed Accounting Ch 1: The Equity Method of Accounting for InvestmentsAbdulkadir Molla
This document discusses the equity method of accounting for investments. It covers several key points:
1. The equity method is used when an investor has significant influence over an investee, usually through owning 20-50% of the investee's voting stock.
2. Under the equity method, the investment is initially recorded at cost. The carrying amount is then increased or decreased to recognize the investor's share of the investee's earnings or losses after acquisition.
3. Journal entries are made to increase the investment for the investor's share of earnings, and decrease it for dividends received from the investee. This matches the investor's income recognition with that of the investee.
4. There may
Management accounting provides accounting information to managers within organizations to help them make informed business decisions. It involves identifying, measuring, analyzing, and communicating financial and non-financial information. The key functions of management accounting are to modify raw accounting data, interpret financial analyses, and assist with management control through tools like budgeting and performance analysis to evaluate operations and fix issues. Management accounting differs from financial accounting in its focus on internal users, future orientation, and inclusion of both monetary and non-monetary information to support management planning, implementation, and decision-making.
This document provides a list of shortcut keys and standard transaction codes for accounts payable in SAP FICO. It includes transaction codes for document entry, accounts, master records, periodic processing, and useful reports. Standard transaction codes are provided for invoice entry, credit memos, invoice parking, payments, account display and changes, vendor master data, interest calculation, dunning, and balance confirmation. Periodic tasks like payment runs, recurring entries, and foreign currency valuation are also covered. Finally, the document lists useful accounts payable and accounts receivable reports for balances, open items, payments, and tax information.
The SAP Financial Accounting (FI) module provides integrated, real-time functionality for processing financial transactions. It consists of several sub-modules including General Ledger, Accounts Receivable, Accounts Payable, and Fixed Assets. These sub-modules are integrated with other SAP modules like Sales and Distribution, Materials Management, and Treasury. Integration provides benefits like timely access to information, flexibility, elimination of duplicate entries, and increased visibility across the business.
Reinventing the Record-to-Report Process for Worry-Free Governance, Risk & Co...Proformative, Inc.
Video & Slides: http://www.proformative.com/events/reinventing-record-report-process-worry-free-governance-risk-compliance
Statutory financial reporting and filing has experienced profound change of late. Unrelenting regulatory pressure, shortened deadlines, digital mandates, and accounting complexity make the Record-to-Report (R2R) process extremely expensive, inefficient, and fraught with risk for the Office of the CFO. This educational session will focus on highlighting the current state of the record-to-report process and understanding the expense impact of R2R on the bottom line. It will also show attendees how to identify critical R2R efficiency opportunities while minimizing risk across the financial close, compliance and disclosure management efforts. Lastly, attendees will learn best practices and things to avoid in the R2R process.
Speakers:
Mike Duderich, Finance Director, Americas R2R Operations, Unilever
Ken Fritz, Executive Vice President, Trintech
Presentation delivered at CFO Dimensions 2013 - www.cfodimensions.com
Track: Governance, Risk, Compliance | Session: 1
The document discusses purchase-to-pay (P2P) processes and how they fit within enterprise supply chain management. It describes key components of P2P including invoice processing and accounts payable. It also discusses benefits of implementing a P2P shared services delivery model and how P2P technology and selective outsourcing of P2P functions can help reduce costs and improve processes.
The document provides an overview of key concepts in SAP's Overhead Cost Management (OCM) module, including:
1) OCM helps plan, allocate, control, and monitor overhead costs by developing standards to control costs and value internal activities using cost centers, internal orders, and other tools.
2) Cost centers analyze where overhead occurs and costs are assigned to sub-areas where they originated, while internal orders collect and analyze costs of internal jobs and tasks.
3) Master data like cost elements, cost centers, activity types, and internal orders are used throughout the OCM processes of planning, actual posting, period closing, and reporting.
The document provides sample audit programs for various accounts and areas that would be tested during an audit, including tangible fixed assets, investments, stock, debtors, bank balances, creditors, long term loans, provisions, capital/statutory records, profit and loss, and taxation. The audit programs list the specific procedures and tests that would be performed to obtain evidence regarding existence, completeness, valuation, cut-off, and proper presentation/disclosure of account balances and transactions.
This document discusses assurance engagements, which are independent professional services that improve information quality. There are three main elements: a three-party relationship between the practitioner, responsible party, and intended users; an appropriate subject matter; and suitable criteria to evaluate the subject matter. Assurance engagements can provide either reasonable or limited assurance and result in a positive or negative opinion on whether the subject matter meets the criteria. Examples include statutory audits and internal audits. Characteristics of suitable criteria include relevance, completeness, reliability, and understandability. Evidence must be sufficient and appropriate, while any opinion issued considers inherent, control, and detection risks.
SAP Profit center accounting provides the information of an organization’s profit and loss. The method which can be utilized for profit center accounting is period accounting. Profit centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit centers are used for internal control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a cost center and profit center is that the cost center represents individual costs incurred during a given period.
To understand the relevance of Form 15G and 15H - the purpose for which the forms are used and the rationale for providing such facility. To analyse the contents of the Forms and understand the eligibility criterias for the assessees to file the Forms. Further, the Webinar shall touch upon certain caveats to be kept in mind while filing the Forms.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
This document provides guidance on how to create a project budget. It explains that the budget should be directly associated with and support the implementation of activities listed in the project application. Budget items should correspond to the resources needed to carry out each activity, such as human resources, travel costs, equipment, and other expenses. The document also provides examples of how to break down budget items by activity and calculate costs based on factors like staff time dedicated to the project and per diem rates. Overall, the key points are that the budget should logically connect to and support the implementation of planned project activities.
This document summarizes an automated invoice processing solution offered by DataBank IMX. The solution digitizes invoices upon receipt, extracts key data using optical character recognition, and verifies the data against purchase orders. This streamlines approval workflows and eliminates manual data entry. Extracted invoice images and data are delivered to clients securely overnight via FTP.
Accounts payable and Best Practice Principles Automation - Sydney 2016Alexandra Khalifa
The document discusses enabling best practices for accounts payable automation. It begins with an agenda for the event covering various topics around AP automation. It then discusses challenges with current manual AP processes including time spent on physical filing, data entry, long processing times and lack of visibility. It promotes the benefits of AP automation in reducing costs, errors and bringing more control and visibility to the process. Key capabilities needed for effective AP automation are identified as multi-channel invoice capture, best practice workflows, system integration, analytics and mobility. The document advocates applying best practices to streamline the AP process.
This document provides an overview of SAP's financial accounting (FI) and cost accounting (CO) modules. It describes the key components and organizational structures in SAP, including clients, companies, charts of accounts, company codes, credit control areas, and controlling areas. Financial accounting handles external reporting like balance sheets, while cost accounting supports internal management reporting by cost centers and cost elements.
The document provides an overview of SAP's general ledger functionality and processes. It discusses [1] the key master data elements like charts of accounts, account groups, and cost elements; [2] transaction processing including journal entries, foreign currency posting, and document reversal; and [3] periodic processes such as account reconciliation, period-end closing, and reporting. The general ledger acts as the central accounting hub that integrates with other SAP modules to ensure accurate and compliant financial accounting.
The document discusses asset accounting in SAP, including:
- Asset accounting is a subsidiary ledger of financial accounting that updates general ledger accounts.
- Asset classes are used to group assets, assign accounts and default values, and structure assets for reporting.
- Charts of depreciation define depreciation areas for book, tax, and other purposes across asset classes.
- Master data includes creating asset records via asset classes or copying, and time-dependent assignments.
- Asset acquisitions can integrate with accounts payable/receivable or use a clearing account.
This document provides an overview of invoice and credit note processing in SAP Accounts Payable. It discusses the key differences between processing purchase order (PO) related and non-PO related invoices and credit memos. For PO related documents, it describes the 3-way matching process known as logistics invoice verification. It also reviews functions for reversing documents, changing documents, and displaying posted documents.
Automation of Accounting process & Advantages/Disadvantages of Computerized a...Muhammed Raashid
The information has been presented in the most simplest and intelligible way possible. It highlights the advantages and disadvantages of computerized accounting. It also includes a detailed explanation regarding the topic, ' automation of accounting process.'
Learn more about the accounts payable process & its related procedures. Find out the importance & challenges involved in accounts payable processing.
https://nanonets.com/blog/accounts-payable-process/
The document provides an overview of key SAP tables used in different SAP modules like FI/CO, Controlling, Accounts Payable, Accounts Receivable, Profit Center Accounting, Cost Center Accounting, and more. It lists the table names, describes their purpose and relationship to other tables through lines and arrows. The tables store master data like vendor, customer, profit center and transactional data like documents, items, postings related to different business processes in SAP.
A cost center is an organizational unit where costs are incurred indirectly contributing to profits. They are used to track overhead costs. A profit center is responsible for costs and revenues, and can be expanded to become an investment center. The document explains how to create cost centers and profit centers in SAP, including entering the required information and saving. It also describes how to create cost center and profit center groups to organize the hierarchy.
The document discusses SAP Financial Closing Cockpit, which provides tools to streamline and automate the financial closing process. It helps accelerate the closing cycle, increase control over tasks, and ensure accuracy of financial reports. Key features include accounting, monitoring, consolidation, and regulatory compliance functions. Implementation involves configuring the software for an organization's specific closing processes and internal controls.
1) The document discusses Internal Financial Controls (IFC), which refers to policies and procedures adopted by a company to ensure orderly and efficient business conduct, safeguarding of assets, fraud prevention, accurate accounting records, and reliable financial reporting.
2) It outlines the IFC responsibilities of different stakeholders like management, auditors, audit committees, and boards of directors according to company size and financial thresholds as specified in the Companies Act 2013.
3) Indiba Consultancy offers IFC assessment and implementation services following a 4-phase methodology covering areas like control documentation, risk assessment, framework development, and ongoing monitoring.
The document discusses purchase-to-pay (P2P) processes and how they fit within enterprise supply chain management. It describes key components of P2P including invoice processing and accounts payable. It also discusses benefits of implementing a P2P shared services delivery model and how P2P technology and selective outsourcing of P2P functions can help reduce costs and improve processes.
The document provides an overview of key concepts in SAP's Overhead Cost Management (OCM) module, including:
1) OCM helps plan, allocate, control, and monitor overhead costs by developing standards to control costs and value internal activities using cost centers, internal orders, and other tools.
2) Cost centers analyze where overhead occurs and costs are assigned to sub-areas where they originated, while internal orders collect and analyze costs of internal jobs and tasks.
3) Master data like cost elements, cost centers, activity types, and internal orders are used throughout the OCM processes of planning, actual posting, period closing, and reporting.
The document provides sample audit programs for various accounts and areas that would be tested during an audit, including tangible fixed assets, investments, stock, debtors, bank balances, creditors, long term loans, provisions, capital/statutory records, profit and loss, and taxation. The audit programs list the specific procedures and tests that would be performed to obtain evidence regarding existence, completeness, valuation, cut-off, and proper presentation/disclosure of account balances and transactions.
This document discusses assurance engagements, which are independent professional services that improve information quality. There are three main elements: a three-party relationship between the practitioner, responsible party, and intended users; an appropriate subject matter; and suitable criteria to evaluate the subject matter. Assurance engagements can provide either reasonable or limited assurance and result in a positive or negative opinion on whether the subject matter meets the criteria. Examples include statutory audits and internal audits. Characteristics of suitable criteria include relevance, completeness, reliability, and understandability. Evidence must be sufficient and appropriate, while any opinion issued considers inherent, control, and detection risks.
SAP Profit center accounting provides the information of an organization’s profit and loss. The method which can be utilized for profit center accounting is period accounting. Profit centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit centers are used for internal control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a cost center and profit center is that the cost center represents individual costs incurred during a given period.
To understand the relevance of Form 15G and 15H - the purpose for which the forms are used and the rationale for providing such facility. To analyse the contents of the Forms and understand the eligibility criterias for the assessees to file the Forms. Further, the Webinar shall touch upon certain caveats to be kept in mind while filing the Forms.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
This document provides guidance on how to create a project budget. It explains that the budget should be directly associated with and support the implementation of activities listed in the project application. Budget items should correspond to the resources needed to carry out each activity, such as human resources, travel costs, equipment, and other expenses. The document also provides examples of how to break down budget items by activity and calculate costs based on factors like staff time dedicated to the project and per diem rates. Overall, the key points are that the budget should logically connect to and support the implementation of planned project activities.
This document summarizes an automated invoice processing solution offered by DataBank IMX. The solution digitizes invoices upon receipt, extracts key data using optical character recognition, and verifies the data against purchase orders. This streamlines approval workflows and eliminates manual data entry. Extracted invoice images and data are delivered to clients securely overnight via FTP.
Accounts payable and Best Practice Principles Automation - Sydney 2016Alexandra Khalifa
The document discusses enabling best practices for accounts payable automation. It begins with an agenda for the event covering various topics around AP automation. It then discusses challenges with current manual AP processes including time spent on physical filing, data entry, long processing times and lack of visibility. It promotes the benefits of AP automation in reducing costs, errors and bringing more control and visibility to the process. Key capabilities needed for effective AP automation are identified as multi-channel invoice capture, best practice workflows, system integration, analytics and mobility. The document advocates applying best practices to streamline the AP process.
This document provides an overview of SAP's financial accounting (FI) and cost accounting (CO) modules. It describes the key components and organizational structures in SAP, including clients, companies, charts of accounts, company codes, credit control areas, and controlling areas. Financial accounting handles external reporting like balance sheets, while cost accounting supports internal management reporting by cost centers and cost elements.
The document provides an overview of SAP's general ledger functionality and processes. It discusses [1] the key master data elements like charts of accounts, account groups, and cost elements; [2] transaction processing including journal entries, foreign currency posting, and document reversal; and [3] periodic processes such as account reconciliation, period-end closing, and reporting. The general ledger acts as the central accounting hub that integrates with other SAP modules to ensure accurate and compliant financial accounting.
The document discusses asset accounting in SAP, including:
- Asset accounting is a subsidiary ledger of financial accounting that updates general ledger accounts.
- Asset classes are used to group assets, assign accounts and default values, and structure assets for reporting.
- Charts of depreciation define depreciation areas for book, tax, and other purposes across asset classes.
- Master data includes creating asset records via asset classes or copying, and time-dependent assignments.
- Asset acquisitions can integrate with accounts payable/receivable or use a clearing account.
This document provides an overview of invoice and credit note processing in SAP Accounts Payable. It discusses the key differences between processing purchase order (PO) related and non-PO related invoices and credit memos. For PO related documents, it describes the 3-way matching process known as logistics invoice verification. It also reviews functions for reversing documents, changing documents, and displaying posted documents.
Automation of Accounting process & Advantages/Disadvantages of Computerized a...Muhammed Raashid
The information has been presented in the most simplest and intelligible way possible. It highlights the advantages and disadvantages of computerized accounting. It also includes a detailed explanation regarding the topic, ' automation of accounting process.'
Learn more about the accounts payable process & its related procedures. Find out the importance & challenges involved in accounts payable processing.
https://nanonets.com/blog/accounts-payable-process/
The document provides an overview of key SAP tables used in different SAP modules like FI/CO, Controlling, Accounts Payable, Accounts Receivable, Profit Center Accounting, Cost Center Accounting, and more. It lists the table names, describes their purpose and relationship to other tables through lines and arrows. The tables store master data like vendor, customer, profit center and transactional data like documents, items, postings related to different business processes in SAP.
A cost center is an organizational unit where costs are incurred indirectly contributing to profits. They are used to track overhead costs. A profit center is responsible for costs and revenues, and can be expanded to become an investment center. The document explains how to create cost centers and profit centers in SAP, including entering the required information and saving. It also describes how to create cost center and profit center groups to organize the hierarchy.
The document discusses SAP Financial Closing Cockpit, which provides tools to streamline and automate the financial closing process. It helps accelerate the closing cycle, increase control over tasks, and ensure accuracy of financial reports. Key features include accounting, monitoring, consolidation, and regulatory compliance functions. Implementation involves configuring the software for an organization's specific closing processes and internal controls.
1) The document discusses Internal Financial Controls (IFC), which refers to policies and procedures adopted by a company to ensure orderly and efficient business conduct, safeguarding of assets, fraud prevention, accurate accounting records, and reliable financial reporting.
2) It outlines the IFC responsibilities of different stakeholders like management, auditors, audit committees, and boards of directors according to company size and financial thresholds as specified in the Companies Act 2013.
3) Indiba Consultancy offers IFC assessment and implementation services following a 4-phase methodology covering areas like control documentation, risk assessment, framework development, and ongoing monitoring.
How Finance Leaders are Transforming P2P into a High Value ProcessTradeshift
The document discusses transforming purchase-to-pay (P2P) processes through standardization and technology. It notes that top performing organizations have end-to-end alignment of purchasing and accounts payable with a single owner accountable for the entire P2P process. Establishing process governance and standardizing transaction channels, payment strategies, and other areas can drive efficiency and effectiveness. Automating invoice processing, increasing spend visibility, and enabling self-service are also discussed as ways to transform P2P through technology and capture value.
Close your books faster, Error Free with Extensive Analytics - 1KEY Financial...Dhiren Gala
Technology can also be a barrier to close books faster. Companies that use desktop spreadsheets to manage their accounting, closing takes about 25% longer to get it done. If your company is still busy closing its books, it can and should do better. A faster close needn’t cost anything and the time invested in making improvements will pay off handsomely.
1KEY Financial Consolidation is a complete data warehouse model with standard statutory reporting requirements for publishing financial statements and with extensive analytical reports. It provides financial managers the ability to rapidly close and report financial results, meet global regulatory requirements, reduce compliance costs and provide confidence in the numbers.
1KEY FCM reduces finance team work from few weeks to days and most important error free with audit trail. Our implementation team will ensure right extraction of data from your SAP, CBS, Back Office or any other ERP data sources and import it in DW model of 1KEY FCM. Then map chart of accounts and automatically all reports for statutory publishing will be available with internal analytical MIS for group reporting scenarios.
Wind farm project economics analysis of utility scale power productionvasishta bhargava
The document outlines the key cost components of a wind farm project including capital expenditures (CAPEX), operational expenditures (OPEX), fuel costs, and legal and regulatory expenses. CAPEX includes turbine and transformer manufacturing, software, foundations, masts, and equipment. OPEX consists of operation and maintenance personnel costs, equipment purchases/rentals, spare parts, and transportation/installation of components. Legal and regulatory expenses cover land acquisition, regulatory approvals, grid connection fees, and legal/consulting services. The document provides a breakdown of total expected costs for a wind farm project.
Fast Close Manager schermafdrukken, Fast Close snel implementeren met documen...André Salomons
www.fastclosemanager.com - Fast Close stelt je in staat om binnen 5 dagen, sneller, beter en goedkoper te rapporteren. Fast Close Manager kan je daarbij goed helpen. Deze schermafdrukken geven u inzicht in de toegevoegde waarde van een monitoring tool. Binnenkort volgt er een update. Fast Close Manager is een module van Financial Suite®.
The ORE Catapult and Future Opportunities,David Arnold,Technology strategy BoardInvest Northern Ireland
Presentation from the Supply Chain Opportunities in the Onshore and Offshore Wind Operation and Maintenance Sectors held at Down Royal Racecourse, Lisburn 27th November 2013
The SAP Financial Closing Cockpit can help organizations take full control of their financial closing process. It provides tools to structure and automate large parts of the closing process, giving managers central oversight and real-time status updates. This allows them to orchestrate the process more efficiently while reducing errors. By optimizing the closing process, finance teams gain time to take on more strategic work instead of managing recurring crises to meet deadlines.
Offshore renewables minimising OPEX Bruce Valpy Nantes 21 May 2015BVG Associates
Presentation given by Bruce Valpy, MD of BVGA on how Offshore renewable cost of energy can be minimize OPEX requirements by carrying our the 10 steps to success
This document provides an introduction to financial management and reporting presented by John Pace and Steven Lyons of Gelman, Rosenberg & Freedman CPAs. It discusses key financial statements including the balance sheet, income statement, cash flow statement, and equity statement. It also covers common internal reports such as budgets and cash flow projections. The presentation provides examples and explanations of financial reporting concepts and terminology.
MindGears believes that sharing insights and methodologies help organizations widen their perspective in improving their service delivery.
Have a conversation with us on how best we can tailor this for you. Or shamelessly copy our method. Let us know if it works for your organizations.
The Closing Cockpit enables creating structured interfaces for executing closing processes. It supports processes within organizational structures using hierarchies, task lists, and monitoring tools. Templates are used to structure process steps and can be customized using organizational levels, tasks, and notes. Tasks include transactions, programs, flow definitions, and user decisions.
Automating Account Reconciliations to Mitigate Compliance RiskProformative, Inc.
Today’s CFOs are challenged with meeting tight deadlines, operating with limited resources and serving in more strategic roles. In this session you will discover how leveraging technology and automating traditionally manual accounting processes, like account reconciliations, can help optimize the financial close process and free up some of the critical time needed from accounting and finance teams. You will learn how your organizations can virtually eliminate spreadsheets and the errors and headaches that come with them; increase control and visibility; facilitate timely, accurate and documented communications between all stakeholders; gain exceptional ROI in a very short time; improve the accuracy and timeliness of compliance reporting; define responsibility and process ownership; and manage compliance while serving multiple locations.
Speaker: Michael Gilmartin, Solution Consultant Manager, BlackLine Systems
Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: Change Anticipation & Readiness | Session: 2
Harmony Gold Mining Company is a gold mining company operating in South Africa and Papua New Guinea with over 40,000 employees at world-class mines. An analysis of the company's stock price on Euronext over the past year and decade shows fluctuations in value. The company has a diverse geographic distribution of shareholders and maintains economic sustainability through key financial performance measures despite currently cheap share prices.
Etude PwC sur le reporting intégré (sept. 2014)PwC France
http://bit.ly/Reporting-PwC
Selon une étude du cabinet d’audit et de conseil PwC, 80 % des investisseurs s’accordent à dire qu’un reporting de qualité influence leur perception de l’entreprise. Pour près de deux tiers d’entre eux (63 %), la qualité du reporting d’une entreprise pourrait avoir un impact financier direct sur le coût de son capital.
« Le jeu mobile PlayStation All Stars Island ».
Depuis, 3 ans le site web de Coca-Cola zero est alimenté en contenus destiné aux fans de jeux vidéo: les news les plus chaudes du monde du jeu vidéo, les tests des titres les plus attendus, des chroniques exclusives, des ambassadeurs tels que Bertrand Amar (journaliste, animateur et producteur), Carole Quintaine (animatrice spécialiste des jeux vidéo) : http://www.coca-cola.fr/coca-cola-zero
Campagne présentée lors de la matinée de paris 2.0 du 5 mars animée par Jérémy Dumont, planneur stratégique : http://www.pourquoitucours.fr
PARIS 2.0 : 60 campagnes de branded entertainment http://fr.amiando.com/brandedentertainment.htm
Plus d'informations : http://www.psst.fr
This document provides guidance for developing and reviewing student performance measures created by teachers. It outlines an 18-point rubric across 3 strands: design, build, and review. The rubric is meant to be a self-assessment tool to help teachers create high-quality performance measures aligned to content standards. It describes processes for designing measures, developing items and administration protocols, and reviewing measures for alignment, validity, and reliability.
This document provides an overview of Datum Corporation's financial performance for 2002 and 2003. It highlights that net revenues increased from $708 million in 2001 to $953 million in 2002 to $1,146 million in 2003. Net income and earnings per share also increased each year. The company's total assets grew from $2,759 million in 2001 to $3,753 million in 2002 to $4,649 million in 2003. Revenue was strongest in Division C at 37% and the United States accounted for 51% of total assets.
Improve Efficiency, Compliance and Productivity Through Finance Transformatio...Perficient, Inc.
Perficient is a leading IT consulting firm that helps clients implement business technology solutions to improve productivity, customer loyalty, and agility. The document discusses Perficient's expertise in financial services and outlines opportunities for finance transformation through streamlining inefficient processes, disparate systems and data, complex organizational structures, and addressing new business and regulatory demands. Finance transformation requires a systematic plan to understand people, processes, and technology and implement needed changes across the organization.
A Holistic Approach to Accounting Close and Reporting Effectiveness: It’s so ...Proformative, Inc.
This document discusses optimizing the accounting close and financial reporting process. It recommends taking a holistic approach that considers people, processes, and systems together. The methodology discussed is lean six sigma, which focuses on end users, improving processes incrementally using a team-based, fact-driven approach. Best practices include viewing the close as a supply chain and setting goals for both efficiency and effectiveness. An optimized technology solution should provide workflow, visibility into status and metrics, and bridge multiple systems used in the close. Overall success requires senior management commitment, a strategic plan, focused resources, and continuous improvement.
It’s not a secret that the need to modernize traditional finance operations and evolve into a “Digital Finance” organization has become a key priority for finance leaders.
In this video recap of the webinar held on 12/11/ 2019; Raul Vega, Auxis CEO, discussed the key risks and challenges organizations typically face as part of their transformation journey, and how to develop and execute a strategy that provides the business case and outcomes you expect based on your specific company size and needs.
What was covered:
- What does Modern Finance really mean?
- Digitization as a Key Element of the Modern Finance Organization
- Most Common Tools you should be implementing as part of your Digital Finance journey
- What’s driving RPA’s growth?
- Implementation Strategies & Alternatives
- How Outsourcing can help finance executives self-fund their Digital Finance Strategy and drive faster outcomes
OPEX.GURU provides services related to operational excellence and process improvement. They use tools and techniques to review client processes and strategies, and bring innovative ideas to help clients continue to be leaders in their industries. Their services include process analytics, client insights, process redesign and innovation, and training programs. They take a strategic and execution-focused approach to help clients unlock value from their data and processes.
Business Transformation - Finance Transformation using SAP Solutionsvenunala
The document discusses strategies for business and finance transformation at a consumer packaged goods company. It recommends leveraging SAP solutions to achieve integrated end-to-end business processes, gain insights from data analytics, streamline applications, and ensure strategic initiatives are aligned with business goals. Key focus areas include supply chain optimization, working capital management, consumer insights, mobility, and leveraging existing SAP investments to transform processes and systems.
This document provides a checklist for identifying core and non-core activities within a company's Finance and Accounting department. It defines the key processes within F&A and provides guidance on assessing whether each process is core or non-core based on factors like whether the process is strategic, adds customer value, requires business judgment, or can be automated. Outsourcing non-core F&A activities can allow a company to focus on its strategic vision and gain efficiencies through access to new technologies and flexible resourcing.
The document discusses the challenges that many organizations face when producing financial reports manually in an inefficient, time-consuming, and risky process. It introduces IBM Cognos FSR as a solution to automate financial reporting and reduce errors, inefficiency, and risks while improving controls and allowing finance staff to focus on more strategic work. Deloitte is positioned as being able to help organizations implement such a system through their experience with business needs, industry knowledge, and full suite of implementation and advisory services.
The winning blueprint for an efficient and effective finance & accounting...Personiv
The backbone of any business is its accounting team. It guides today’s business leaders to make their most crucial decisions. But running an efficient accounting team can be tough when faced with out-of-date systems, transactional processes, and scarce talent. Find out how to turn your F&A function into a competitive differentiator with our white paper.
Transforming Finance and Accounting to Optimize Financial CloseCognizant
Many firms are working to accelerate and improve the daily financial close, but are far from ready. By formalizing the F&A value chain, modernizing and strengthening their F&A platform, assessing and optimizing existing service models and heightening overall F&A governance, companies can achieve this goal, supported by a set of success factors for measuring progress and aligning transformation activities.
Thrive in the World of Change (Joshua May and Richard Revis, Blackline and EY)Executive Leaders Network
Delivered at ELN's Finance Leaders Event on Thursday 10th November 2022.
"Change is the only constant. No words have rung truer over the past few years.
As the world faces continuing disruption, companies can expect an accelerating pace of change and will need to build greater organisational resilience to better respond and adapt to a changing landscape.
Finance automation solutions are helping accounting and finance teams embrace change to not only improve accuracy, execute tighter controls, and decrease risk, but also focus on complex and judgemental areas to help drive strategic business decisions.
This is what modern accounting looks like: processes are automated, data is connected, and the role of auditor and accountant is elevated. The overall accounting team’s role evolves beyond executing checklists and historical reporting to include proactive analytics and a seat at the decision-making table.
After this session, attendees will be able to:
• Employ best practices, resulting in a better utilised, more efficient organisation that focuses on risk management, compliance, and data analytics
• Transform the way accounting and audit departments work by reducing manual tasks, resulting in better attraction and engagement of top talent
• Understand the power of automation and how it strengthens accounting organisations"
Creating Value Through Digital Enterprise Transformation
Originally presented to XPX, CT Chapter. We look at what it takes to create value and reduce risk using digital enterprise transformation to improve your business processes, technology, and talent foundations.
Topics covered include building a roadmap, process improvement, systems improvement including ERP, CRM, BI/Analytics, and eCommerce, how to build a global organization, and how to build a professional management team.
Deloitte SAP Finance Transformation AcceleratorJan Bultinck
Finance transformation is a double-edged sword. On one hand,
it can have a significant positive impact on business results.
But it can also require a considerable commitment of key talent
and resources for an extended period of time. That’s why no
organization takes finance transformation initiatives lightly. It’s
important to get them right
The document provides information on Banking Performance Analyzer software called Vision. It summarizes Vision's key features and functionality including dimensions and measures, accounting engine, close optimization, financial consolidation, IAS/IFRS reporting, management reporting, regulatory reporting, credit risk analysis, key performance indicators, dashboards, scorecards, reports, cost allocation, activity based costing, and funds transfer pricing. It is intended to help banking institutions improve performance measurement, compliance, and risk management.
Your Digital Finance Transformation JourneyWorkday, Inc.
When it comes to navigating digital transformation within finance, no two organizations or industries are alike.
View this slide deck to learn how Workday and Deloitte are partnering to provide customers across industries with a perfect path forward, and can help you set a clear strategy for your journey.
Do you have the right tools to measure your financial performance? Do you know what elements are necessary to guide your business? Based on last year's rave reviews, Autotask's own Chief Financial Officer, Vince Zumbo, will return to lay out the fundamentals of planning and monitoring your financials for success. Vince will be aided by Autotask Product Manager Joe Rourke who will demonstrate how you can apply what you've learned by leveraging Autotask to support your business' optimal financial health. This session is full of tips, templates and insights that are used by financial professionals today and can be used by organizations of all sizes.
[Presenters: Vince Zumbo & Patrick Burns, Autotask]
The document discusses how Chief Financial Officers (CFOs) can help law firms evolve and drive value in the future. It notes that CFO roles are changing due to digital advancement. Traditional cost reduction approaches may not be effective, as customers now demand agility, transformation and data-driven insights. The document recommends that CFOs build an analytics strategy to gain insights from data, understand where their firm creates and leaks value, automate finance functions, invest in their team's skills, address culture issues, partner with IT effectively using agile methodologies, and facilitate strategic priorities through tribes and squads.
How to Bring About Finance Transformation on Your Own TermsWorkday, Inc.
In this deck, experts from PwC and Workday explain how finance leaders can use automation, artificial intelligence, and analytical skills to help their teams adapt to rapid change.
The document discusses enterprise performance management (EPM) and the results of surveys conducted with over 2,600 finance professionals. It finds that EPM processes like planning, budgeting, forecasting, performance reporting, and cost analysis are often disjointed and not well integrated. Additionally, ownership of these processes frequently remains with the finance function rather than the wider business. The document advocates integrating EPM processes, focusing on key value drivers, and addressing challenges like data quality and technology adoption to help organizations better manage performance.
This report examines options for procure-to-pay operations with a focus on improving Procure-to-Pay (P2P) process through a transformational approach that meets an organization’s procure-to-pay operations objectives. Authored by the Account Payables Network and sponsored by Datamatics Global Services. Visit http://www.datamatics.com
Carpio Solutions is a global software company that offers the GesFinTM suite to help customers maximize financial and operational performance. Headquartered in North Carolina with offices in Latin America and Europe, Carpio has over 100 employees and partners with MicroStrategy. The document discusses how the traditional finance role is changing to focus more on strategic planning, predictive analytics, and high-value activities rather than manual tasks. It promotes GesFinTM and its integration with MicroStrategy as providing tools to help companies anticipate needs, allocate resources better, and support high performance. Case studies show how GesFinTM helped companies improve planning, collaboration, and decision making.
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A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
Covey says most people look for quick fixes. They see a big success and want to know how he did it, believing (and hoping) they can do the same following a quick bullet list.
But real change, the author says, comes not from the outside in, but from the inside out. And the most fundamental way of changing yourself is through a paradigm shift.
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1. Financial Closing & Effective Reporting
Strategies
By : Dr. Dhirendra Gautam (Ph.D., CA, CMA & ICWA)
Visiting CFO Partner, Corporate Trainner, Mentor and Advisor
www.dhirendragautam.com
2. VisitingCFO.com
www.dhirendragautam.com
Dr. Dhirendra Gautam is a Mentor, Trainer and Corporate Advisor
providing world class Mentoring, Training & Skill development to
corporate Professionals, youths and students in India and across the
world for better Career-growth, Employability and Leadership
Development.
A Professionally qualified Chartered, cost & Management accountant
with Ph.D. in business Management.
23+ years of international expertise in leading and managing the
business and Finance around the world for 150 countries.
PRESENT
Chief Executive Officer (CEO), Indiba Consultancy Services Pvt. Ltd. (www.indiba.in)
MD & Visiting CFO Partner (www.visitingcfo.com)
Chairman & MD, Navi Mumbai Chamber of Business & Industry (NMCBI)
PAST
Global CFO – SuperMax Group (150 country)
Group CFO – Al Khodari group (Africa & Middle east)
Director Finance & Business planning – PEPSI (GCC)
Head of Finance (Shared Service) – UNILEVER ARABIA
Finance Manager – MOTOROLA
Worked in UK, Singapore, Middle East & India
Expertise in FMCG, Construction & Contracting, Retail, Financial Services, Utilities, Travel,
Transportation and Logistics, Pharmaceutical, Manufacturing and other service industries.
Dr. Dhirendra Gautam
(Ph.D. , CA, CMA, ICWA)
The Course Director
3. VisitingCFO.com
www.dhirendragautam.com
Finance Priority and Challenges
Sn. Financial Challenges Priority Index
1 Cash Forecasting 6.8
2 Period End Closing 6.7
3 Accounts Reconciliation 6.4
4 Working Capital Management 6.2
5 Banking Relationship 6.0
6 Consolidation 5.9
7 Debt & Other Investments 5.8
8 Pricing 5.8
9 Variance Analysis 5.7
10 Accounts Receivable 5.6
Note : Finance Priority Survey 2014, by Protiviti on a Scale of 0 to 10
Process Capabilities : Financial TransactionProcess Capabilities : Financial Transaction
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Sn. Financial Challenges Priority
Index
1 Strategic Planning 7.0
2 Periodic Forecasting 6.9
3 Budgeting 6.8
4 Performance Management / Executive Dashboard / BSC 6.6
5 Profitability Analysis (Product, Customer, Channel) 6.6
6 Business Intelligence (Operational Reporting) 6.4
7 Margin Management 6.3
8 Profitability Reporting - Product 6.2
9 Profitability Reporting - Segment 6.1
10 Board of Directors Financial Reporting 5.9
Note : Finance Priority Survey 2014, by Protiviti on a Scale of 0 to 10
Process Capabilities : Financial Analysis & ReportingProcess Capabilities : Financial Analysis & Reporting
Finance Priority and Challenges
5. VisitingCFO.com
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The Changing Role of Finance : The New Direction
Decision
Support
Control
Reporting
Transaction
Processing
Decision
Support
Control
Reporting
Transactio
n
Processin
g
Old Paradigm New Paradigm
6. VisitingCFO.com
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The Changing Role of Finance : The New Direction
The Paradigm has not just shifted its reversed and reduced.
The New paradigm representing Efficiency gains (smaller size)
The boost in productivity represented by the relative increase in
resources in Decision.
The new paradigm is reached by transitioning from systems &
processes:
That are manually intensive, cumbersome, redundant, high
maintenance, and high cycle time to
Ones that are automated, streamlined, low maintenance, and quick
cycle time.
7. VisitingCFO.com
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The Changing Role of Finance : The New Direction
Decision
Support
Control
Reporting
Transaction
Processing
Decision
Support
Control
Reporting
Transacti
on
Processi
ng
Old Paradigm New Paradigm
•Confrontational
•Independent,
•Veto Power
•Technical
•Compliance with
External Rules
•Minimal Involvement
•Problem Finding
•Post-Event Critique
•Sophisticated Analysis
•Strategic Market Issues
•Problem Solving
•Embedded
•Accountability
•Cost/Benefit
Sensitive
•Relevant to Business
• Rich Information
•Integrated
•Outsourced
•Quick Cycle Time
•Automated
•Streamlined
•Low Cost
•Data Collection
•Organizational
•Hierarchy Driven
•Manually Intensive
•Cumbersome
•Redundant
•High Cost
•High Cycle Time
8. VisitingCFO.com
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•Increasing
efficiency
•Ongoing reduction
in transaction
processing
effort
•Eradication of
errors reduces cos
of rework
•Continuous
improvement culture
emerges
•Regular, faster close
traps errors,
minimises
quality issues
•One set of standards
for group wide
integrity
•Programme instils
confidence
•Moves culture to
can do
•Increased focus on
value add content
•Improved job spec
motivates post
•Finance Business
Partnering
•Finance can do
more than the
basics
•Forward looking
business focus
•Enabler for greater
breadth of duties
The Finance Value Chain
Core Transactions and
Processes
Business Partnering, Decision
Support and Risk Management
Plan and
Manage the
Business
Financial
Analysis &
Reporting
Transaction
Processing and
Compliance
Financial
Closing
10. VisitingCFO.com
www.dhirendragautam.com
Collect data Close Adjustments
Currency
I/C
Subsidiaries
Report
Management
Legal
External
Analyze
6 Days 12 DaysAverage
Collect Close Adjustment Report Analyze and Forecast
<2 Days 6 Days
World Class
More time!
Source: Hackett Group Benchmarking-Solutions Book of Numbers
Corporate Financial Closing & Reporting
11. VisitingCFO.com
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Financial Closing to Reporting At-a-Glance
Collect Data Calculate & Adjust Report
• Gather from multiple &
disparate applications
• Store data in a centralized
repository
• Generate financial
statements,
managerial reports,
and perform ad hoc
analysis
• Apply FASB and IFRS
consolidation rules
• Perform currency translation
& aggregation
“Consolidations applications are seeing a resurgence after what was
considered a maturing of this market, driven primarily by compliance issues
in the United States (driven by Sarbanes-Oxley) and worldwide (driven by
the International Financial Reporting Standards).”
12. VisitingCFO.com
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Financial Closing & Reporting – Challenges
Complex
application
portfolio
Surveys find that in a typical multinational company to have as many as 300 to
1,000 individual steps, each to be executed in sequence, in its closing process.
increasing the risk of executing these steps in the wrong sequence across ERP
systems and spreadsheets. And hence the risk for errors is substantially
increased
The human
element
Many companies deploy extremely large and complex spreadsheets to control
their closing process, relying on manual data gathering and file editing. Tasks
and processes must be defined at the lowest level of detail to eliminate any
uncertainty or opportunity for personal misinterpretation and resulting risk of
inconsistency over time and across business units.
Missing
documentation
Many global businesses use "a central spreadsheet” to record the sequence of
steps they undertake in a financial close, but they find it most challenging to
demonstrate and document precisely the calculation and approvals of critical
aspects such as judgments about doubtful debts or impairment tests
Compliance with
new standards
Global corporations constantly face new challenges. An example is
implementing accounting policies compliant with International Financial
Reporting Standards (IFRS) and reporting them in using eXtensible Business
Reporting Language (XBRL) IFRS compliance means adopting a new set of
accounting policies that interpret some events in ways that may be unfamiliar to
US generally accepted accounting principles (GAAP) trained accountants.
13. VisitingCFO.com
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Business Pressures
More Stringent Regulations
• What can I do to accelerate
reporting as required by statutory
regulations?
• How do I improve transparency,
accuracy, and auditability?
Mergers & Acquisitions
• How can I ensure new
acquisitions are quickly
integrated into my company?
• How can I simplify keeping my
books in synch with re-orgs?
Demand for Growth
• How can I improve visibility into overall enterprise performance?
• How can I help my managers identify opportunities to improve profitability?
Collect Data Calculate & Adjust Report
14. VisitingCFO.com
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Accounting Differences
• Charts of accounts
• Accounting methods
Manual, Error-Prone Processes
• Data extraction, transformation, and load
• Adjustments and eliminations
Operational Challenges
Lengthy close process with weak internal controls
Rigid systems that cannot exploit new opportunities
Disconnect between strategy and execution
$$
Subsidiary 1
¥¥
Subsidiary 2
Joint Venture
Affiliate
€€
• Intercompany
transactions
• Currencies
• Calendars
Complex Ownership Structures
• Minority interest
• Cross holding
Multiple, Fragmented Systems
Consolidation
Parent Company
££
15. VisitingCFO.com
www.dhirendragautam.com
“The Hackett Group’s studies show that “world-class companies
spend 45 percent less” on their closing and reporting efforts than
other companies, which on average saves $5.5 million per $1 billion
in revenue. These savings come, in part, from needing fewer people
and systems to scrub data.”
How IT Executives Can Help Speed Up Financial Reporting, CIO Magazine, March 15, 2007
16. VisitingCFO.com
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Fast Financial Closing - Definition
Routine process of completing the accounting cycle and preparing
internal and external reports…
Fast Close is accelerated financial and management reporting in
pursuit of value creation. This is achieved by the design
and implementation of a stable and focused closing cycle with optimal
use of available technology providing management with the
key financial information to enable proactive management action
By rationalising existing processes, minimising manual effort and
increasing the use of automation and technology, Fast
Close accelerates financial and management reporting
Companies that are able to close their books quickly and deliver more-
timely information to external and internal stakeholders can gain
competitive advantage in a rapidly changing marketplace.
17. VisitingCFO.com
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What is Fast Close?
Fast Close is a process and methodology which utilises current best-
practice for Financial Close, Consolidation, and Reporting theory
Fast Close combines working smarter throughout the month, and at
month-end, with technology enhancements, in order to close sooner
and with less overtime at month-end
Fast-close focuses on improving discipline in the finance area and on
standardising as many of the pre-close, close, consolidation, and
reporting processes as possible across the various Business Units /
Operating Entities
Fast-close does not mean simply closing the period off earlier in the
month
18. VisitingCFO.com
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Fast Close – Misconception
Fast close is all about financial consolidation
Only by using a single chart of account will companies improve their
reporting process
Operating units or Group Consolidation are the only focus of attention
and will provide the majority of the improvements in a typical project
Improvement can be achieved by closing prior to month end and rolling
forward
Improvements in reporting and closing processes are only possible if
you spend money on IT
If you report faster you are bound to be less accurate
19. VisitingCFO.com
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Performance
Management
Cost
Reduction
Internal time
Pressure
Statutory &
Regulatory
time Pressure
Market
Perception
There are number of business drivers that are forcing Organization to focus on “Fast Close”
Why “Faster” Financial Closing..?
• Business
leaders
require fast,
accurate
information to
support
decision
making
• Faster
Business
Decision
• KPI & Role
Driven
• Optimization
of the
Finance
Process
• Process
Efficiency
• World class
processes
• Increased
Information
Flow
• Input to
decision
making
• M&A
• Diversification
and
Expansion
• SEBI, ROC,
BSC, NSC,
Tax Authority
• IFRS,
USGAAP,
Sox
• Industry
specific
regulatory
requirement
• Shareholder
Value
• Stakeholder
Value
• External
stakeholders
and
regulators
want more
transparent
information in
less time
20. VisitingCFO.com
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• More timely
processes
• Increased
automation
• Routine activity
rationalised
• Information is
complete,
integrated real time
• Finance shift
• Number crunching
is minimised
• Analysis time is
maximised
• Increasing
efficiency
• Ongoing reduction
in transaction
processing
effort
• Eradication of errors
reduces cost of
rework
• Global consistency
• A simplified/
streamline audit is
enabled
• Continuous
improvement
culture emerges
• Regular, faster
close traps errors,
minimises
quality issues
• One set of
standards for group
wide integrity
• Allows standard
global processes
• Single version of
truth facilitates
confidence
in decision taking
• Programme instils
confidence
• Moves culture to
can do
• Increased focus on
value add content
• Improved job spec
motivates post
holder
• Skills and
competencies
broadened,
deepened to
aid delivery
• Finance can do
more than the
basics
• Forward looking
business focus
• Enabler for greater
breadth of duties
• Development of
Finance Portal
• Finance seen to
add value, support
the business
Benefit of “Faster” Financial Closing
Speed
Cost
Reduction
Improved
Quality
Motivated
People
Enhanced
Finance
Function
21. VisitingCFO.com
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Benefit of “Faster” Financial Closing
Phases Emphasises What is Addressed ?
Pre Close Preparation • Error tracking & Continuous
Improvements
• Data Quality
• Process Stability
• IFRS, SOX applicability
• Technology Environment
Close
• Re-engineering, Information flow
at local level
• Process Analysis
• Timing issues
• Global Vs. Local
• Responsibilities
• Information Integration
• Technology Interfaces
Consolidation
• Data Integrity / Integration • Accounting Policy
• Integration
• System Support Issues
• Process Documentation
• Validations
Reporting
• Re-engineering of Reporting
delivery
• Improvement of Analytical
Capability
• Timing
• Quality of Information
• Relevance of Information
• Distribution of Information
• New Information Need
Faster Financial Close Covers all aspects of the closing Process
23. VisitingCFO.com
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A Hackett Group study at that time showed that the average closing cycle for
companies was six business days, and the average reporting cycle was another 5.4
days. Closing cycles did improve earlier in the decade. However, Sarbanes-Oxley
(SOX) compliance requirements stalled and even slightly reversed the trend toward
shorter closing cycles, in 2003 and 2004.
The Hackett Group publishes benchmark data on financial processes, including the
financial closing and reporting cycle. In their 2007 study, Hackett reported that the
average company took 5.9 days to close their books. In 2003, the Hackett Group
reported that the average company’s financial closing cycle was 5.2 days, with another
5 days spent on reporting. Top-performing companies in the study reported combined
financial closing and reporting cycles of 5 business days or fewer. Although this data
represented an improvement over the results in Hackett’s 1997 study, SOX compliance
requirements stalled and even slightly reversed the trend toward shorter closing cycles.
Average number of days to close.
24. VisitingCFO.com
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Collect data Close Adjustments
Currency
I/C
Subsidiaries
Report
Management
Legal
External
Analyze
6 Days 12 DaysAverage
Collect Close Adjustment Report Analyze and Forecast
<2 Days 6 Days
World Class
More time!
Source: Hackett Group Benchmarking-Solutions Book of Numbers
Corporate Financial Closing & Reporting
26. VisitingCFO.com
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Management and Cultural Changes to Achieve
Fast Close
Necessary Management and Cultural Changes to Achieve Fast
Financial Closing and Efficient Reporting
Reduction in the number of legal entities to consolidate
Finance Shared Service with Centralised Finance Operation
World Class ERP System with
Clearly defined key performance indicators
Focus on top-level results rather than unnecessary details
Eliminating interim closes
27. VisitingCFO.com
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Financial Closing & Reporting – Best Practice
Date Collection, subsystems
closing
• Data at source; few manual entries
• Automated interfaces
• Accounting complexity reduced
• Don’t hold up close for minor errors
• Use pre-month end reserve and closing reviews
Book Closing • Materially limits established
• Work performed outside of close
• Error correction reduced
• Adjustments “true up” on quarterly basis
• Entries pre-formatted and automated
Consolidation & Review • Automate critical processes(intercompany)
• Reduce information to consolidate
• Eliminate and consolidate reviews
• Financial report through one consolidation system
Reporting • Reduce volume of reports
• Manage by exception
• Establish balanced scorecard
Forecasting & Forward
looking
• Relate volume and $ forecasts automatically
• Use “stub period” estimates to reduce closing cycle
• Automate forecasting process
• Flash income forecasts produced first day of close
• Use of forecasts critical to soft close
28. VisitingCFO.com
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Date
Collection,
subsystems
closing
• Capture data at source with few manual journal entries.
• Invalid transactions from feeder systems are resolved
before the start of closing.
• Account validation and maintenance are done using one
controlled data base.
• Automatic table updates when there are organizational
changes.
• Program edits in all feeder systems and rules for edits
are provided in standards for internal control.
• Close critical systems and update transaction data
weekly. Feed subsystems more frequently than monthly
Financial Closing – Best Practice
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Financial Closing – Best Practice
Date
Collection,
subsystems
closing
• Summarize data from subsystems before posting to general
ledger.
• Track errors and assign responsibility for error recycling.
• Systematize routine journal entries, distributions, and closing
entries before accountants impact the closing process.
• Chargeback support-related expenses (allocations) based on
market or standard rates.
• Use of materiality limits to reduce entry and account detail and
manage time spent on small items.
• Reduce number of accounts and transaction codes.
• Tracking errors and assigning responsibility for determining root
cause and ensuring that errors never happen again.
• Chargeback/allocations of support-related expenses using
standard rates. These entries can then be run before the close
cycle.
• Use of materiality limits to reduce entry and account detail. This
is only important for manual entries that are required during the
close cycle. This is when you need to decide whether to make
the entry and affect downstream tasks or whether to book the
entry the following month
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Financial Closing – Best Practice
Book
Closing
• Corrections of immaterial errors and adjustments should be done in the
following month.
• Book accruals at the subsidiary and not at the organization level. This can
be trued up the following month.
• Use pre-formatted accrual, elimination, reversal, and adjustment entries,
where possible, and automate.
• Use ratio and accrual rates based on previous month’s calculation.
• Establish materiality limits to book adjustments.
• Make external to the closing process.
• Selected activities:
• Reconciliation
• Immaterial error correction
• Account maintenance
• Calculated accrual percentages
• Minimize error to about .02% (233 errors per 1,000,000 lines of account
attributes).
• Use quarterly or annual true up to adjust as necessary, not monthly.
• Trend monthly accruals and record recurring estimates as recurring
entries.
• Reconcile accounts on a cyclical basis based on risk and do outside the
close.
• Establish performance metrics to monitor speed, quality, and cost of
closing.
• Only resolve material items during segment review at segment level and
reverse next month to book at market level.
• Same analogy could work at corporate.
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Financial Closing – Best Practice
Consolidation
& Review
• Consolidated data should be pre-formatted and system should
automatically produce segment and corporate consolidated
reports.
• Reduce required information for consolidation.
• Avoid replicating financial data in separate reporting systems.
• Establish materiality limits for review and approval steps.
• Minimize number to review layers.
• Consolidated numbers are highlighted when outside budget or
trend control limits.
• Profit center and legal entity reporting are driven from the same
source of data and always balance.
• Intercompany eliminations, currency translations, and
corporate/segment allocations are done in an automated
manner to not hold up close.
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Financial Reporting – Best Practice
Reporting
• Formats based on key performance indicator and financial
reports.
• Report variance of hardcopy reports and have strategy for
retiring obsolete reports.
• Design executive report package to include trend, graphical,
comparison to target and “story line” information.
• Ability to “drill down” to analyze significant variances.
• Maintain financial data warehousing using relational data base
technology to access financial information.
• Responsibilities for reporting to executives are clearly
delineated with minimal adjustments after the consolidation
process.
• Automate month-end reporting for income statements, balance
sheet, cash flow, and performance metrics, including Value-
Based Management concepts.
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Financial Reporting & Forward looking – Best Practice
Forecasting
• Ability to develop flash income estimate after first day of
close.
• System modelling capability to create net income
forecasts from the estimate.
• Ability to analyze difference between forecasts and
actual based on the analysis of major “profit centers”
(e.g., volume, price, cost, mix, currency, etc).
• Use of forecast as part of introduction of soft closing
process for months that do not end a quarter.
• Ability to use product or service composites to forecast
profit margins. A composite is a grouping of services or
products such as combining products into product lines.
• Data base of forecast information integrated with actual
and budgeted information.
• Forecasts visible to all individuals that are responsible
for major “profit drivers”.
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Implementing – Faster Financial Closing
Create the Vision
of Finance
Get Ready For
Faster Close
Visualize Target
Environment
Extend to Soft
Close Process
Implement Target
Processes
• Create & design
the team and
steering
committee
• Define
customer
requirements.
Bothe Internal &
Externals
• Determine
finance function
goals and
measures
• Identify the
world class best
practice
• Evaluate
current
environment
• Perform
resource and
cycle time
analysis
• Assess systems
affecting the
close
• Identify non
value added
activities
• Identify
improvement
targets
• Identify close
process metrics by
portions of value
chain
• Define materiality
• Define closing
entry process
• Define end of
month and
beginning of
month processes
• Identify
outstanding issues
• Analyze major
performance
• Develop process
implementation
plan
• Conduct
training
• Implement
changes
• Monitor
progress
• Benchmark the
outcome with
identified target
• Develop
monthly
performance
scorecard
• Define soft
close process
• Implement soft
close
• Implement
periodic review
and
enhancements
• Set the next
level
Benchmark
Implement Change Management through the Process
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Leading Practice for Close at Work Day 5
Close Activity Day Activity
Complete
Production/Process Order Closure -1
Payroll & OT -1
Inventory -1
Material Close 0
Accounts Payable 1
Fixed Assets/Depreciation 1
Cash & Bank Recon. 2
SG&A Accruals 2-3
Revenue 2-3
Operational Costs 2-3
Accounts Receivable 2-3
Intercompany 3
Legal Entity Ledger Close & Review 3-4
Consolidation Activities & Review 4-5
Management Reporting 6-7
CloseProcess
5 WD
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Best Practice for Close at Work Day 2
Close Activity Day Activity
Complete
Actual
Achieved
Production/Process Order Closure -1 -1
Payroll & OT -1 -9
Inventory -1 -1
Material Close 0 -1
Accounts Payable 1 0
Fixed Assets/Depreciation 1 0
Cash & Bank Recon. 2 1
SG&A Accruals 2-3 1
Revenue 2-3 1
Operational Costs 2-3 1
Accounts Receivable 2-3 1
Intercompany 3 0
Legal Entity Ledger Close & Review 3-4 1
Consolidation Activities & Review 4-5 2
Management Reporting 6-7 2
CloseProcess
2 WD
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Accounting irregularities have
brought financial reporting
into the spotlight
The Challenge of Corporate Reporting
Fast close vs data quality
Fragmented reporting supply
chains
Autonomy vs accountability
Decentralised vs single stream
Audit controls vs flexibility to keep
pace with change
Too many spreadsheets….
39. VisitingCFO.com
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The Challenge of Corporate Reporting
PwC survey
16% Base reporting on strategy
27% Clearly explain underlying
revenue drivers
31% Align KPIs to strategy
19% Link external drivers to strategic
choices
7% Communicate detailed
commentary across reporting
models by segment
• Compliance-driven approach to
external reporting
• Focus on financial measures to the
detriment of non-financial reporting
• Increasing pressure of timely
reporting to investors and markets
• Governance more important than
transparency?
• Finance overwhelmed by factors
not aligned with the reporting risks
Source: PwC Competitive Edge Survey 2011
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The Challenge of Corporate Reporting
Shareholder suits may follow if the mistakes are material to the
company’s Report and it’s forced to restate financials. Further, finance
departments will be burdened by having to re-do the reports, and the
company may incur added cost and complexity if it has to hire a third
party to audit those numbers again. Finally, a restatement can be career-
ending event for the CFO or controller. “Who would want to employ a
CFO who made a material mistake and had to re-file their account?”
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Optimizing the Financial Process to Fast Reporting
Close sub ledgers
into GL (AR, AP, FA,
etc.)
Perform Reconciliations
and Post Accruals
Deliver self
service
financial
reporting to the
organization
Create external
reports with
disclosures and
financial data
Automate and
deliver
external &
statutory
filings
Gather and validate
complete data sets to
support all financial
reporting needs
Automate consolidated
financial reports
leveraging multiple
hierarchies and
calculations
Sub Ledger Close
General Ledger
Close
Data
Assurance
Consolidation
Internal
Management
Reporting
External
Financial
Reporting
Filing
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Get it right first
time!
Apply a corporate close calendar for feeder systems to G/Ls.
Automate allocations and accruals in the G/L.
Standardise reporting formats for reliable data and faster review.
Central Finance
efficiency
Perform intercompany reconciliations ahead of month end.
Use phased submissions to act on availability of site data.
Create automated ledger integrations for fast load of financial data.
Intelligent review
Design hard and soft validations to facilitate one-touch reviews.
Streamline the approval process – focus on what matters.
Use process controls to minimize post-close entries.
Consolidation &
Reporting
Automate top-side adjustments and equity eliminations.
Build consolidation hierarchies that match cycle requirements.
Use exception reporting with drill through analytics.
Integrate financial and management reports as production packages.
Best Practices
Optimizing the Financial Process to Fast Reporting
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Technology to improve Faster Closing & Reporting
PERFORMANCE MANAGEMENT APPLICATIONS
Strategy
Management
Business
Planning
Profitability
Management
Financial
Reporting &
Compliance
EPM Workspace
OLTP & ODS
Systems
Data Warehouse
Data Mart
SAP, Oracle, Siebel,
PeopleSoft, Custom
Business
Process
OLAP
Fusion Middleware
Business Intelligence Foundation
BI Applications
EPM Workspace
Excel
XML
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Financial System to Achieve Fast Close & Reporting
Necessary Financial Systems Changes to Achieve Fast Close and
Effective Reporting
Adopting a fully integrated financial application system, ERP , SAP &
Oracle , BI and Hyperion
Deploying an automated financial consolidation system
Using an automated, intercompany accounting system, which allows
transactions to occur between different legal entities owned by the
same company
Leveraging a Web portal for delivery of standard reports
Linking a Web portal to an online analytical processing database that
allows companies to conduct ad hoc queries and analyses
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Although automation can relieve some of the human factor, it can be
an albatross in its own way. The more things are automated, the
harder it can be to update the system, and the more a real person
may have to update it by hand.
“The technology alone is not a silver bullet,” “These initiatives require
a balanced focus on people, process and governance in order to
truly realize each application’s full value.”
Financial System to Achieve Fast Close
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“The new Group Reporting System
successfully merges multiple reporting
models across the group, improving
the efficiency of our consolidations. We
have reduced our monthly closing
cycle by around 2 weeks and save 30+
man days of time at head office.”
Group Financial Controller
Tata Steel Europe
£12 Billion t/o service and steel
manufacturing company
Tata acquisition of Corus
imposed fast close challenge
Concentric business process
review ensured project focus on
key drivers for change
Global deployment in 8 months
Single stream, centrally
architected solution cuts 2
weeks from closing cycle
4000 spreadsheet reports
replaced with 300 HFM reports
Deployment of HFM reduces
close by 2 weeks
Use of ERP to Achieve Fast Close & Reporting
Note : Date and Facts from Oracle Corporation
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Deployment of Hyperion Financial Management Pays for Itself in 18 Months
BUSINESS CHALLENGE
• 20 days to close
• Lengthy year-end reporting
• Costly financial reporting
process
• 78 charts of accounts
• Widely varying reporting
definitions and procedures
VALUE DELIVERED
• 6 days to close
• Reduced year-end reporting by
25%
• $1 million annual savings
(67% ROI)
• 1 reporting chart of accounts
• More productive finance staff
Global publisher of textbooks for the education,
business information,
and consumer publishing markets
Saves $1 Million Annually
Use of ERP to Achieve Fast Close & Reporting
Note : Date and Facts from Oracle Corporation
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Operational &
Statutory
Reporting
Management
Reporting
Board PACK
LEVEL 1
LEVEL 2
LEVEL 3
Strategic Management reports, Performance reports,
KPI and Status Updates on various Projects and
initiatives
Functional &
Department
Reporting
Sales, Marketing
Manufacturing
and SC
performance
reviews
Framework for Financial Reporting
Finance Reporting Strategies
Profitability
Reporting by
Product, Customer
& Channel
• Daily, Weekly, Monthly & Quarterly reports,
• Profit & Loss Accounts, Balance Sheets
• MCA returns, SEBI Compliance, IT compliance reports
52. VisitingCFO.com
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The Financial Reporting Trend & Board Pack
Actual Board Presentation Pack of a MNC will be presented to
the participants on the date of Training. This will give a real-
time experience to them:
1. What is the latest reporting trend
2. How a Reporting Board pack is prepared &
3. what are the reports to be included in this report pack