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Close, Consolidate, and Reporting Cycle.pptx

  1. Close, Consolidate, and Reporting Cycle Paul Young CPA CGA Senior Data and AI Specialist March 26, 2023 2023-26-03
  2. Paul Young - Bio • CPA, CGA • Academia (PF1, FA4 and MS2) • SME – Risk Management • SME – ESG and Sustainability Reporting • SME – Financial Analysis and Planning • SME – Data Strategy and Data Management • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Emerging Technology • SME – Business Process Change • SME – Financial Solutions • SME – Supply Chain Management Email:
  3. • CFO area of Focus • 2020 focus of Business • 2021 / Focus • Sustainability Reporting • CPA/USA – Reporting • Self-Reporting Issues • Regulatory Filing Issues • Time to close the accounting cycle • Continuous accounting close • Other pain points for accounting and finance • AI and Accounting • Virtual Close Cycle • Sales / Forecasting • Supply Chain • Analysis and Reporting • Cognos Controller • Cognos Analytics / Driving Strategic Decisions • CloudPaks • FOPM/FPM solutions • Risks/audit • Security / Data Privacy Agenda
  4. September 9, 2014 Area of Focus by CFO Source -
  5. September 9, 2014 g-towards-transformation-2021-trends-in-finance-and- accounting/?sh=6ed4329834ab 1. Automation will no longer be debated. Routine, rules-based tasks will be automated. This was true before the pandemic, with over 50% of finance and accounting professionals indicating automation would impact how their company performed its work in the next one to two years in a Deloitte/IMA survey released in August 2020. 2. Remote working will become the norm for finance teams. According to a June 2020 PwC survey, “54% of CFOs plan to make remote work a permanent option.” Facilitating successful remote working arrangements is a two-part process 3. Environment, Social and Governance (ESG) reporting will become more important. An already-accelerating trend pre-COVID-19, ESG will gain new focus, fulfilling consumer mandates for more corporate responsibility, but also serving as an important organizational risk mitigation tool. Financial Transformation / 2021
  6. September 9, 2014 g-towards-transformation-2021-trends-in-finance-and- accounting/?sh=6ed4329834ab 4. Enterprise Risk Management (ERM) becomes a finance accountability. If there’s one thing the Covid-19 pandemic has taught is, it’s that a crisis can emerge suddenly and overtake all one’s plans and expectations for the future 5. Diversity, Equity and Inclusion (DE&I) will be a competitive differentiator, in addition to being the right thing to do from a core values perspective. In 2019 The Wall Street Journal ranked companies in the S&P 500 by levels of diversity and inclusion. They found the top 20 companies (or those with the highest scores for DE&I) had better operating results on average than the lowest-scoring firms 6. Upskilling is the call-to-action. IMA recently conducted a global survey of finance and accounting professionals, posing questions related to COVID-19 impacts on staffing, revenue management, upskilling and reskilling. Financial Transformation / 2021
  7. September 9, 2014 Source - and-q1-of-2021/ CFO Challenges Going into Q4 and Q1 of 2021 1. Change Management - One of the major CFO challenges the pandemic created is a pressing need for change management. Most companies are now forced to recognize they need new digital technologies, skilled talent, and innovation, but that doesn’t mean change comes easily. 2. Creating an Agile Business Model - The pandemic has clearly demonstrated the need for company agility. Businesses without a Plan B scrambled to recovered and some could not operate at all. Those that could quickly adapt to a work-from-home strategy or a blend of in-house and remote work had a distinct advantage over their competitors. In the long run, agility could determine whether a company survives during and after the pandemic. 3. Automating Processes - Most CFOs recognize automation of routine tasks such as accounting, payroll, HR, and compliance can offer savings. Some also see the benefits of harnessing the power of automation for a stronger, more effective organization. 4. Analytics & Long-Term Planning - According to the TCS 2020 CFO Study, long-term strategic planning is a development priority for CFOs. Subsequently, they believe superior analytic skills will deliver the most value in the next five years. An integral part of long-term planning and a company’s response to change is access to in-depth financial reporting. More than ever, companies need accurate, real-time data to create accountability, improve levels of performance, and pinpoint where to best focus their talent and leaders. By connecting finances with operational data, non-finance leaders can also see benefits for more informed decisions. 5. International Complexity - The pandemic has drastically increased the complexity of operating across borders. Legislative changes occur at lightning speed across jurisdictions and can change frequently too, making compliance an even greater challenge for the CFO than in the past.
  8. September 9, 2014 Source - investing/most-cpas-accept-the-esg-accounting-challenge/337087 Most CPAs accept the ESG accounting challenge
  9. September 9, 2014 CFOs are not ready for an era of self-service reporting Source -
  10. September 9, 2014 Accounting and Big Data help-businesses-achieve-compliance-in-2021
  11. September 9, 2014 2020 Focus by Business Source - need-to-address-soon.html 1. Cyberattacks Continue to Run Rampant 2. Consumers Look for Engaging Content on Social Media 3. Stakeholders Want to Be Educated 4. Distributed Teams Require Collaborative Task Management 5. People Want to Do Business with Thought Leaders 6. Customers Demand Fast Responses to Inquiries and Concerns
  12. September 9, 2014 CPA / Business Challenges Source - • Less emphasis on new standard changes (i.e. leases, credit losses, etc.) • AI/RPA - Accountants have heard for years that emerging technologies such as blockchain and artificial intelligence (AI) are going to radically reshape the profession. The reality has yet to live up to the hype, but major strides could be made in 2020 on a couple of fronts. The first of those is the continued development and adoption of robotic process automation (RPA). Most current RPA iterations are perhaps best described as Microsoft Excel macros on steroids. These RPA "bots" can watch a human perform a multistage process and then repeat that process. Unlike Excel macros, however, RPA can perform these processes across multiple applications. • 5G Technology - "2020 will be a breakout year for 5G, as handset manufacturers begin to make a 5G chipset standard equipment," said Rick Richardson, CPA/CITP, CGMA, founder and CEO of RichardsonMedia & Technologies LLC. "The major telecommunications companies will continue major deployment of network coverage.“ • Automation of tax reporting and filing • More demand for real-time data processing • More emphasis on advance analytics (data sciences)
  13. September 9, 2014 Statutory reporting falling short Source -
  14. Times it takes to close Source - tax/2023/02/cycle-time-to-perform-year-end-close-speed-up-annual-close/
  15. SOX and the Cost of Compliance • Source - 201716857.html
  16. 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) • Developing and implementing an effective data strategy • 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
  17. What is continuous accounting • Source - September 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.
  18. Risk Management September 9, 2014 • 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
  19. Internal Audit September 9, 2014
  20. AI and Accounting September 9, 2014 Source - transform-the-accounting-industry-nid-451.html
  21. Virtual Close Cycle September 9, 2014 Source -
  22. Sales / Forecasting September 9, 2014
  23. Analysis and Reporting September 9, 2014
  24. Driving Strategic Decisions September 9, 2014
  25. Cognos Controller September 9, 2014
  26. Cash Flow Management September 9, 2014
  27. Watson and automation of the close cycle September 9, 2014
  28. Watson and Retail (example) September 9, 2014
  29. Cloud Pak / Containerization September 9, 2014
  30. Cloud Pak / Modern Analytic Environment September 9, 2014
  31. GRC and Risk Management September 9, 2014 Here is my work on automating Internal Audit as part Risk Mitigation -
  32. ESG Reporting September 9, 2014 Link:
  33. Security and Data Protection September 9, 2014 More than ever before, as pandemic conditions persist, the threat of data breaches and cyberattacks continues to grow. COVID-19 has permanently changed organizational culture and behavior. Recognizing these changes is the first in a series of steps to mitigate them once this pandemic end, and before the next. 1. Working from home 2. Meeting virtually 3. Keeping data private 4. Redefining culture 5. Managing and controlling transformation changed-cybersecurity/ I have written many blogs on security: Guardian/IBM - GRC / OpenPages – Best Practices / tors_guide.7.3.0.doc/c_op_adm_best_intro2.html or Close, consolidate, and reporting - MAAS360 - IBM Security Products -
  34. Planning Analytics Scorecard and Workbooks September 9, 2014 1. Creating Scorecards - 2. Charts - 3. Charts - charts/ 4. “Starting with a basic cube view, a user doesn’t need to enlist a report developer to produce an on-screen crosstab, chart or combinations or both.” 5. Creation of the metrics cube - nos.tm1_prism_gs.2.0.0.doc/t_prism_working_scorecards.html 6. Scorecards /metrics - nos.pa_trial.2.0.0.doc/c_prism_scorecard.html 7. Creation of scorecards - for-dummies 8. PA users can work with scorecards -
  35. Cognos Controller September 9, 2014
  36. Cloudpak for Data September 9, 2014
  37. Thank you 37

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