www.trintech.comwww.trintech.com

TransformingTransformingthethe LAST MILELAST MILE ofof

FINANCEFINANCE

Theresa Clark – VP, Finance TransformationTony DiTomasso, Financial Solution ConsultantMarch 21, 2012

Theresa Clark – VP, Finance TransformationTony DiTomasso, Financial Solution ConsultantMarch 21, 2012

Strategize:Plan for AutomationPart 2 of a 4 Part Series

Strategize:Plan for AutomationPart 2 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 Strategize Address?What Does Strategize 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. Strategize – Making the decisions for

change Your Close goals Compile Close task list Identify owners, approvers Set documentation requirements Establish metrics

V. Areas of Focus

VI. Lessons Learned by Others

STRATEGIZE

Planning for automatingmanual processes. Selectionof key areas of pain anddetermining required changesin current processes andprocedures.

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

What is your company’s primary goal for changing the

close process?

a. Increase confidence

b. Increase efficiency

c. Increase agility

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

Strategize: Goals for Last MileStrategize: Goals for Last Mile

What Does Success Look Likes for

OUR COMPANY

Establish Pain Points & Areas Ripe for Change– Unacceptable number of PAJES

– Overtime running 5% above company average

– Reporting turnover creating risk of missing deadlines

Have an Agreed Upon Set of Success Factors:

Interim and Longer Term– Standard reconciliation template used end of q2

– Close task compiled and set up week 3

– 10 hour days, 1 weekend day, year 1

– Satisfaction ratings up 2 points

Strategize: Set Close TasksStrategize: Set Close Tasks

Coalesce on a Single Set of Close

Tasks

Determine scope of tasks – key tasks or all tasks

Establish task locations – geographies, locations,

functions

Consider if managing tasks in a system is required

for all tasks on the list – e.g. non financial impacting

administrative tasks

Polling Question #2Polling Question #2

How many close tasks does your company have?

a. 10-75

b. 76-150

c. 151-300

d. 300+

Strategize: ApprovalsStrategize: Approvals

Set the Task Approval Requirements Establish the required level of approval for each

task.

Determine the path for how exception processes are managed?

Consider if there are tasks that do not require approval?

Strategize: DocumentationStrategize: Documentation

Establish Standards for Documentation

Determine which tasks require documentation

Create templates for documentation where standard

format desired

Set how will documentation be associated with tasks

– via link or saved independently

Understand what documents need to be associated

with each task for procedural purposes

Analyze: Close Reporting Analyze: Close Reporting

Create a Process for Items That are

Non-Standard

Review the quarterly issues logs and non-

recurring items to create a set of processes to

manage non standard events

Define these tasks in the close list

Capture the approval and documentation

processes that are associated with non-standard

events

Strategize: PerformanceStrategize: Performance

Create a Set of Metrics for Measuring Results

and a Set for Improving Processes

Set metrics for managing the daily processes and instilling

quality and efficiency– % tasks performed on time

– Number of tasks by performer (load)

– Number of on time tasks by performer

– Number of PAJEs

Improvement– Work load rebalancing based on log jams

– Move key issues first review to senior staff

– Increased standardization due to approver lags

Polling Question #3Polling Question #3

Our company has a set of close metrics that align tightly to the company’s overall goals?

a. Agree

b. Disagree

c. We don’t currently have metrics for close process

Typical Areas of Focus: Journal EntriesTypical Areas of Focus: Journal Entries

Focus: Recurring = manually intensive, clerical errors,

completeness Non-recurring = manually intensive, often late in

process, approvals and reviews

Considerations: Establish a single process before automation Document the recurring, including reason,

estimates, support, approvals Decide level of automation and integration desired

with ERP

Journal Entries

Typical Areas of Focus: Account ReconciliationsTypical Areas of Focus: Account Reconciliations

Focus: Multiple types and methods of reconciling

Aging of unreconciled amounts

Clear auditable trail of support

Considerations: Establish a single process before automation

Document the recurring, including reason, estimates, support, approvals

Decide level of automation and integration desired with ERP

Account Reconciliations

Lessons Learned Lessons Learned

Approval Levels– Most tasks require only one approval– Some high risk JE’s require two

Hierarchies– Corporate generally needs access to divisional close tasks due to

high level of dependencies– Hierarchies need to be carefully established to allow visibility

across and down the organization

Standardization– Use templates to enforce standards– Have support attached to tasks– Create the dependencies to increase communication

Reporting– Use reports for specific analysis – not dashboards– Have dashboards capture “close meeting report outs”

Questions?Questions?

Thank you for participating.

For further information please contact:

Hilliary.Opseth@trintech.com (USA)+1 800 416 0075

Carol.orr@trintech.com (EMEA)+44 (0) 207 628 5235

Continue the Conversation – Please register for the second in our new webinar series

Part III: Energize: When: Thursday, 4/19/2012

Time: 10:30 am Central Standard Time (Chicago, GMT-06:00)

4:30 pm GMT Time (London, GMT)

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 TransformationTony DiTomasso, Financial Solution Consultant