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:

[email protected]

© 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

September 9, 2014

© 2012 IBM Corporation

September 9, 2014

© 2012 IBM Corporation

September 9, 2014

© 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

Internal Audit

September 9, 2014

© 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