part 3 energize webinar deck
DESCRIPTION
Part 3 of Financial Close Webinar Series: EnergizeTRANSCRIPT
www.trintech.comwww.trintech.com
TransformingTransformingthethe LAST MILELAST MILE ofof
FINANCEFINANCE
Theresa Clark - VP, Finance TransformationSteve Dalton - Solutions Manager, Professional Services
April 19, 2012
Theresa Clark - VP, Finance TransformationSteve Dalton - Solutions Manager, Professional Services
April 19, 2012
Energize - Create VisibilityPart 3 of a 4 Part Series
Energize - Create VisibilityPart 3 of a 4 Part Series
Today’s PresenterToday’s Presenter
Theresa Clark – VP Finance Transformation
CPA
Former partner of Andersen, LLP and managing Director
at BearingPoint
Seasoned finance professional with over 20 years of
finance experience leading finance transformation,
financial close improvement and post merger integration
for major companies.
Specialist in transforming compliance, reconciliation and
close financial processes
Member of the American Institute of Certified Public
Accountants
Who is Trintech?Who is Trintech?
Trintech is a leading
provider of integrated
solutions for The Last Mile
of Finance.
Our solutions optimize the
entire Record-to-Report
cycle resulting in
transparent financial
measurement and
governance.
• Over 650 Industry leaders
use Trintech
• 26 of the Fortune 50
• 100+ of the Fortune 500
What Does Energize Address?What Does Energize Address?
I. The Last Mile – Quick Recap of the Issues
II. The Goals
III. Overview of the Transformation Stages
for the Last Mile of Finance
IV. Energize – Migrating to Automation Global close calendar Tasks and procedures Work flows Collaboration tasks Reference documents Binders Reporting
VI. Work plan
VII. Questions
EnergizeMigrating the existing closecalendar and tasks into aclose solution. Providing theteam with capacity andvisibility.
What is the Last Mile of Finance?
Inform
C
Prepare&
Report
GroupClose
GL Close
& Consolidate
Local Close
Plan Scope Schedule Report Forecast
Plan
Procure to Pay
Order to Cash
ACCURACY CONTROLS TIMELINESS
THE BRIDGE TO REPORTING TRANSPARENCY
Budget
Comply
Perform Manage
The Interdependencies of the Last Mile of FinanceThe Interdependencies of the Last Mile of Finance
GL
Rec
ons
Ope
ratio
nal
Rec
ons
Clo
se +
R
epor
ting
ManagementReviewer/Supervisor
Performers
Com
plia
nce
40 + DaysQ start Q end
90 days
Import tasks & controls
Schedule tasks
Perform
Monitor Roll forward
Review File
Support inE-Record
Form10Q10K
Taxonomy Tagging XBRL Filing
XBR
L
Scope Auto Schedule tasks
Perform compliance tests
Remediate
Report & Certify
Redesign
E-Record
Design & Establishcontrols
Review & Monitor
Assign & Schedule
Audit/External
Reconcile & research
Monitor/Review/Approve
Remind, escalate
Report, Analyze, Support
Prepare
-10 days
Remind, escalate
Research & Resolve
Manage exceptions
Load Balances
Auto match
Adjust & Balance
Report, Analyze, Support
Load balancesVerify complete
Manage issues
Ledgers
Performers
What are the Goals of Finance Transformation?What are the Goals of Finance Transformation?
Confident
Business Goal: An Automated and Standardized Finance Process
Streamlined Agile
Accuracy of the Foundational Numbers• Monitor key controls• Enterprise collaboration• Better information = better
decisions• Isolate and escalate issues rapidly
Standardize and Consolidate Processes• Focus on value-added activities• Improve service levels• Train employees faster• Automation = more work by
fewer people including SSC’s
Supportive Environment for
Enterprise Growth• Rapid integration of acquisitions• Smoother transitions• Framework to support new
initiatives (XBRL, IFRS, TAX)
Lack visibility into processes
Desire for top down approach
Unacceptable level of risk
Uncertain
Cycle times too longOverlapping requirements
Stressed personnel
Inefficient
Lack flexibility to absorb changes
Turnover is disruptive
InflexibleThe Drivers of Change
Polling Question #1Polling Question #1
The most difficult part of starting a close transformation
for my company is?
a. The time
b. The what - coming to consensus
c. The cost
Optimize
Energize
Analyze
Strategize
Where are We Within the Last Mile of Finance Maturity Model?Where are We Within the Last Mile of Finance Maturity Model?
Manual Process Improvements
• (Manual) detective controls & procedures
• Manual process improvements
• Legacy apps• Heavy spreadsheet use
• Email, Word, shared drives
Semi‐Automated Process
• Semi‐automated controls
• Point solutions for collaboration (e.g. SharePoint), process management and compliance
• Lack of controls across data streams
• No single view into close and reporting process
Manual Processes
• Disjointed processes• Legacy apps• Heavy spreadsheet use
• Email, Word, shared drives
Fully‐Automated& Optimized
• Best practices• (Automated) preventive controls embedded into business process
• Consolidated view into close & reporting process
• Fully integrated with XBRL, close, exception mgt, reconciliations, and compliance
• Automated and collaborative global workflow
• Real‐time process optimization
Efficiency, Transpa
rency, Qua
lity
Cost of Finance, Risk
TODAY WE ARE HERE
Energize: Global Close CalendarEnergize: Global Close Calendar
Standing Up The Global Close Calendar
• Populate the close calendar
• Recognize and input different close calendar for
different filings
• Recognize and adjust for the differing holiday
schedules for different regions
• Establish differing calendars – month, quarters,
annual
• Establish a set of close days to be used by all
groups (e.g. day -1, day 0…)
• Map the close days to the calendar
Energize: Creating Action Plans for Close TasksEnergize: Creating Action Plans for Close Tasks
Establish Close Tasks in Scheduler
Upload existing task list to schedule
Identify task types – e.g. JE, analysis, memo
Edit the desk procedures to provide specific
instructions
Use questions to gather key data points
Sequence the task dependencies and link
tasks across functions
Flag key tasks – e.g. high risk, key control
Associate the task with accounts
Polling Question #2Polling Question #2
My company’s close tasks are well defined and specific?
a. Yes – easily executed by new employee
b. Need work
c. No – highly dependent on employee knowledge
Energize: Enable Work FlowEnergize: Enable Work Flow
Establish Work Flows for Tasks Designate task timing – monthly, quarterly…
Define due dates for performers and approvers
Define approvers for each tasks
Stagger time zones accordingly
Move across time zones to take advantage of global clock
Designate escalation paths for tasks
Create automated notices for overdue notices and escalations
Energize: Reference DocumentationEnergize: Reference Documentation
Set Up Reference Links
Associate required reference documents with each
tasks (e.g. manuals, legal documents, rules)
Provide/require templates for documentation where
standard format desired
Use reference to provide detailed procedures if
required
Centralize references for ease of linking and updating
Energize: Select E BindersEnergize: Select E Binders
Select the E Binders for Task
• Define “Binders” desired for Close
• For each task select the desired binder(s) for
future reference– Close detail binder
– Prepared by client audit schedules
– Auditor binder
– Management book
• Define requirements for binders – Comments included?
– Attachments only for auditors
– Details for monthly post close review
Energize: Dashboards and Reporting Energize: Dashboards and Reporting
Configure Dashboards to Focus on Key Areas
• Use dashboards to monitor process and make course correction
– Daily task status
– Delays
– Issues
– Key accounts
• Use Reports for Details and Review
– Detailed reports on performance
– Review of all dependencies
– Customized views for specific managers
Polling Question #3Polling Question #3
Implementation of close management automation at my company would improve visibility?
a. Slightly
b. Moderately
c. Significantly
Energize: Work PlanEnergize: Work Plan
Standard Best Practices Apply
Leadership & Ownership• Have plan signed off on by all key stakeholders.• Identify project manager and create capacity to manage project• Identify all key players including IT, interfacing users…• Dedicate time to user communication and acceptance
Design Documentation• Document all project design, requirements and decisions• Conduct a solution walkthrough to validate design• Carefully review data before migration/validate post migration
Communicate & Manage Change• Prepare support and users for roll out• Test performance over time and volumes pre/post go live• Wrap up and follow up
Questions?Questions?
Thank you for participating.
For further information please contact:
[email protected] (USA)+1 800 416 0075
[email protected] (EMEA)+44 (0) 207 628 5235
Continue the Conversation – Please register for the fourth and final in our new webinar series
Part IV: Optimize: When: Wednesday 5/23/2012
Time: 10:30 am Central Standard Time (Chicago, GMT-06:00)
4:30 pm GMT Time (London, GMT)
http://www2.trintech.com/l/3242/2012-02-01/b3nb8
www.trintech.comwww.trintech.com
TransformingTransformingthethe LAST MILELAST MILE ofof
FINANCEFINANCE
Thank YouThank You
Theresa Clark – VP, Finance TransformationSteve Dalton, Financial Solution Consultant