Close, Consolidate and Reporting Cycle for Business - January 2018
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Transcript of Close, Consolidate and Reporting Cycle for Business - January 2018
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© 2014 IBM Corporation
Close, Consolidate and Reporting
Cycle
Presenter: Paul Young, CPA, CGA – Proven Practice Adviser – Risk
Analytics, FOPM/FPM and Close, Consolidate and Reporting
Date January 22, 2018
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© 2014 IBM Corporation
Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Emerging Technology
• SME – Business Process Change
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
© 2012 IBM Corporation
• Time to close the accounting cycle
• Continuous accounting close
• Other pain points for accounting
and finance
• FOPM/FPM solutions
Agenda
© 2012 IBM Corporation
Overview
• Accounting and Finance continue to
evolved as business demands more
and more real-time processing.
• AI is driving more and more
automation within accounting and
finance departments.
© 2012 IBM Corporation
Times it takes to close
The APQC study, which examined close-to-disclose cycle
time for 524 companies with more than $1 billion in revenue,
found that the top 25% were able to complete the entire C-
to-D process in 12 days or less. The median cycle time was
15 days, while the bottom 25% of companies took 18 days
or longer. The worst performers needed up to 25 days to get
the job done.
September 9,
2014
CFO.com – August 2015
© 2012 IBM Corporation
SOX and the Cost of Compliance
Source -
http://www.journalofaccou
ntancy.com/news/2017/ju
n/companies-spending-
more-time-on-sox-
compliance-
201716857.html
© 2012 IBM Corporation
What can be done to expedite the close
• More automation between ERP systems with reporting
systems
• Movement to FOPM and FPM solutions
• Strengthening controls on all aspects of the organization
(Ongoing internal audit programs)
• More integration between systems
• Use of mobile applications to access real-time reporting
• Re-engineering other business processes as part of
streamlining the close, consolidate and reporting cycle
September 9, 2014
© 2012 IBM Corporation
What is continuous accounting
Source - http://www.digitalistmag.com/finance/2017/02/17/what-is-continuous-accounting-
04917410September 9,
2014
• Continuous accounting is a paradigm shift for finance professionals
responsible for closing the books and producing financial
statements. “The way we’ve always done it” is to wait until period
end, work long hours, and get the end of the period reporting done.
This traditional way of doing things is based on repeating what’s
been done period after period in the past. The reports are getting
done so if it ain’t broke, don’t fix it. Change is hard.
• The concept of continuous accounting is not waiting until the end of
the period to execute the multiple tasks that need to happen to close
the books. With the advancements in technology over the past
years, it is now possible to execute tasks required for the close
throughout the period. Similar to the concept of a soft close,
continuous accounting provides better visibility into financial results
throughout the period – live and in real time.
© 2012 IBM Corporation
Risk Management
• Risk Management
• The total global expenditure on risk IT systems and services by financial institutions (FIs) will be $70bn during 2016.
• The two biggest areas for investment are in the risk governance and integration field ($22.4bn), which is being driven by compliance demands, stress test reporting obligations and risk data aggregation requirements, and financial crime risk, which follows closely behind in terms of growth, as cyber and fraud risks multiply and converge.
• The Chartis 2016 Global Risk IT Expenditure report aggregates all of the firm’s 2015 research to derive a global risk IT spend. The market sizing exercise by Chartis is based on a comprehensive bottom up methodology driven by thousands of demand side data points. Furthermore, the analysis has been validated by top-down data from hundreds of technology vendors and consulting firms.The report provides an overview of the risk technology market and forecasts 2016 expenditure for specific risk categories, examining the regulatory, operational and reputational drivers for different sizes of financial institution (FI) and across different regions
© 2012 IBM Corporation
Artificial Intelligence and Office of Finance
September 9,
2014
Source - https://www.prnewswire.com/news-releases/artificial-intelligence-to-
revolutionize-finance-department-and-change-the-role-of-accountants-
300578644.html
Asked to select areas within the finance department that would be
most affected by AI, more than half (56%) the respondents said the
technology should enable them to complete accounts payable and
receivable functions without the need for human intervention. Almost
half (49%) said AI would further facilitate the automation of
reconciliations. Nearly one-third (31%) said the tools would assist the
financial close.
The work performed by AI is not limited to process-heavy and time-
consuming tasks, with nearly one-quarter (24%) of respondents
projecting that AI tools could undertake strategic financial decisions, as
well.
© 2012 IBM CorporationSeptember 9,
2014
• Contact information
• Paul Young (email: [email protected])
• IBM Close, Consolidating and Reporting, Risk and Planning Analytics
• http://www.ibm.com/analytics/us/en/business/financial-reporting/
• http://www-03.ibm.com/software/products/en/planning-analytics
• http://www.ibm.com/analytics/us/en/business/governance-risk-compliance/
• Planning Analytics Workspace -https://www.youtube.com/watch?v=gGYBqvSboAg