Agenda Overview Our solution Value proposition Our team Selected credentials. B Fast close

Transcription

1 Fast Close

2 Agenda Overview Our solution Value proposition Our team Selected credentials B Fast close

3 Overview Fast close 3

4 Monthly closing A continual challenge Is your team stretched to its limit during monthly closing? Does month end coordination with a number of key stakeholders leave you with very little time for a quality close? How do you perform expense/revenue provisioning calculations and book closing activities at every month end? Do you rely on key individuals to perform provisioning calculations? What controls are you planning to have in place for the provisioning process? Do you have analytical reporting capabilities to analyze your key provisioning areas and customers? Have you been able to leverage your data and generate actionable business insights? 4 Fast close

5 Fast Close Solution overview The Fast Close (FC) solution helps you generate working schedules with end-to-end financial analytics. It looks at addressing statutory reporting, regulatory information, reconciliations, traceability, DoA analyses (for better control) and a review of financial, operational and risk data at multiple levels across various systems. The focus is on automation of typical activities for periodic book closing, and helping controllers analyse trends based on financial data and actionable business insights in key revenue and expense provisions. It can be offered as a hybrid solution, with appropriate enablement tools and manpower support on site as required. An accountant and an analytics specialist (as required) can spend 4 5 days every month to help clients close on time and meet regulatory reporting requirements (including GST). Fast close 5

6 Value proposition Time reduction for month end book closures by more than 75% Independent of specific employees with process understanding Provisioning with scenario analysis capabilities History and traceability of provisioning processes Graphical user interfaces enabling quick error free provisioning Exchange rate impact analysis on unpaid debts Audit trail to trace data files and provision/reversal upload Help clients achieve data integrity, traceability & cycle time improvement 6 Fast close

7 Our solution Fast close 7

8 We can help improve closing by looking at all aspects of the operating model Period-end close process is the bridge between a solid chart of accounts, consolidation and reporting as well as budgeting and planning. Sustainable improvements will require a comprehensive and systematic review of the entire finance operating model. Set up a global framework for finance policies to support global governance Define a global data architecture and chart of accounts Have a single source of data Policy Deliver effective and efficient Finance processes in the right location Structure the organization to deliver value added services to the business Data Process Define appropriate local, regional, global structures, shared service centers/ outsourcing Organization Select the right people with the right skills in the right location People Performance Measurement Set up a global performance measurement framework Benchmarking and continuous improvement of service levels Promote a global finance community Technology Define a finance system architecture and tools to enable value added Finance activities 8 Fast close

9 An effective approach FC goes beyond traditional improvement techniques Category Traditional improvement techniques Our approach characteristics Process excellence measures Process perspective Emphasises efficiency Process execution and measurement is complex and costly Siloed view of processes with focus on inefficient areas Emphasises effectiveness and agility Provides a platform that has out of the box process execution and monitoring Holistic view of processes to address inefficiencies and promote process effectiveness Technology Applies technology to solve an issue Leverages business architecture principles before applying technology Enables visioning at an activity level Enables strategic alignment Delivery Big bang approach to process improvement Iterative or agile approach to process improvement Business engagement System development and tooling Change management Business are left out of the black box of solution design and development System development artefacts are created and discarded at end of each phase Leverages disparate tools Policies and procedures require updating after each change and sometimes not accurate Collaborative approach that requires business engagement and contribution in each phase Accelerated development by leveraging the tools throughout system development Offers robust tools and platform to accelerate, validate, and collaborate development Self-documenting solution; process flows define the process and are executed by the engine Fast close 9

10 A well defined methodology The FC solution utilises a well defined methodology to help improve your monthly closing Data collection Submission and consolidation Financial and management reporting Data collection Entity close and submission Consolidation Internal and external reporting Business units 4 Management reporting 1a Production feed schedule Synchronized production feed schedules to reduce data reporting errors 1b Chart of accounts Data structure to capture transactional detail. Foundation for data analysis a. b. c. 2 Checklist Detailed close checklist for each department which includes specific delivery dates and time 3 Consolidation process Consolidated Financial information Financial statement preparation 5 External reporting Balance sheet income statement cash flow supporting schedules External entities Group Subsidiaries Budgeting and planning Budgeting Internal reporting Actual vs. budget Forecasting Ad-hoc Internal entities Business units Segments Service lines Analysis Revenue processes Fixed assets and project accounting Business unit submissions 6 Long range planning AP processes Payroll processes Intercompany eliminations General accounting Treasury processes Topside journal entries Tax processes Flash report creation Time management and functions Competencies Roles and responsibilities Training needs Performance measures 10 Fast close

11 Leveraging Robotic Process Automation We can leverage technologies like RPA to expedite time consuming closing activities such as review, control, etc., Use code Robotics-enabled review and control Full status transparency, no double analysis in time critical closing process Finance team L/E Controllers submit legal entity financials in SAP BCS L/E approvers review and approves L/E financials in BCS Submit flash and actuals in SAP BCS Continuously update financials Sign-off legal entity flash and actuals Records late adjustments if necessary Group controllers monitor submissions & perform group close Perform inter unit clearing Monitor L/E submissions Validate and control Validate and control Manage commentary Perform capital consolidation Robot support Support L/E closing enabling improved accuracy & speed Enables validation and control on L/E level Enables validation and control on group level Provides consistent status & variance analysis String workflow support Improved process control Status transaparent at any time Status transaparent at any time Fast close 11

12 12 Fast close Value proposition

13 A sample of benefits from a Faster Close Improvement action Process reduction Critical path impact Deliver revenue numbers earlier (sales, refreshes, alerts) 1 day 1 day Streamline regional revenue assurance process 2+ days Combined 1 day with; 2,3,4 Add resources to support the revenue assurance process 1 day * Streamline and shift standard finance processes ½ day * Enable additional sales support during close Accelerate corp P&L review ½ day TBD Streamline tax processes Streamline investor relations materials development and reviews ½ day 1 day Reduce MD&A footprint and streamline ER Rationalize forecast activities required for earnings release 1-3 days 1 day Reduce Audit Board review time and executive prep / cadence 1 day 2 day Implement E2E Process Ownership and Management Tool 1 day Total 6 days Fast close 13

14 14 Fast close Our team

15 FAAS analytics team overview People 600+ professionals with experience across analytics landscape Experience in analytics strategy, analytics enablement and analytics delivery Highly leveraged team with a mix of business, technical and statistics skills Resources experienced in information management, descriptive and diagnostics analytics Resources experienced in advanced analytics consisting of statisticians, PhDs and domain experts Process Seamless integration with engagement teams worldwide, including Onsite Offsite Model Integrated quality review within projects apart from firm s requirements Scripts available in scripts library for standardized processes and sectors Continuous innovation on new analytics applications as well as enhancing existing solutions Analytics workbench of tools (Indicative) Technology Access to a suite of analytics tools for every analytics requirement Investments in tools for ETL, Analytics, reporting and visualization An analytics lab and access to state-of-the-art cloud infrastructure for analytics SAS SPSS R SQL ACL SSIS Tableau Spotfire Python Fast close 15

16 16 Fast close Selected credentials

17 Accelerating earning release by improving the close process Objectives - Review current Record to Report process to identify opportunities for accelerating earnings release Problem statement Solution Organization wanted to understand ways to accelerate earnings release timing. The following areas were reviewed to support earlier earnings release targets: Close feeder processes Entity and business unit close Corporate level close Consolidations processing Tax provisioning processes Forecast and planning Base financial production and internal reporting Disclosure assimilation and publishing Gathered all key current financial statement close processes and categorized substantial issues or impediments in the financial statement close process Identified root causes for all key issues in order to ensure solution concepts address foundational concepts Developed several financial statement close process recommendations representing opportunities to optimize close-cycle time Developed several recommendations supporting an additional 5 day reduction in earnings release Developed a financial statement close process improvement roadmap sequencing process, technology and organization changes according to priority, impact and resource requirements Investor relations activities Earnings release Benefits achieved Identified opportunities to enhance current performance of close and earnings release through peer benchmarking study, root cause development and best practice comparisons Aligned organizational leadership to improvement areas required to reach desired performance Facilitated improvements specifically in management and GAAP reporting, streamlined investor relations, account reconciliation workload optimization and manual journal entry rationalization Fast close 17

18 Notes: 18 Fast close

19 Our offices Ahmedabad 2 nd floor, Shivalik Ishaan Near C.N. Vidhyalaya Ambawadi Ahmedabad Tel: Fax: Bengaluru 6 th, 12 th & 13 th floor UB City, Canberra Block No.24 Vittal Mallya Road Bengaluru Tel: Fax: Ground Floor, A wing Divyasree Chambers # 11, O Shaughnessy Road Langford Gardens Bengaluru Tel: Fax: Chandigarh 1 st Floor, SCO: Sector 9-C, Madhya Marg Chandigarh Tel: Fax: Chennai Tidel Park, 6th & 7th Floor A Block, No.4, Rajiv Gandhi Salai Taramani, Chennai Tel: Fax: Delhi NCR Golf View Corporate Tower B Sector 42, Sector Road Gurgaon Tel: Fax: rd & 6 th Floor, Worldmark-1 IGI Airport Hospitality District Aerocity, New Delhi Tel: Fax th & 5 th Floor, Plot No 2B Tower 2, Sector 126 NOIDA Gautam Budh Nagar, U.P. Tel: Fax: Hyderabad Oval Office, 18, ilabs Centre Hitech City, Madhapur Hyderabad Tel: Fax: Jamshedpur 1st Floor, Shantiniketan Building Holding No. 1, SB Shop Area Bistupur, Jamshedpur Tel: BSNL: Kochi 9 th Floor, ABAD Nucleus NH-49, Maradu PO Kochi Tel: Fax: Kolkata 22 Camac Street 3 rd Floor, Block C Kolkata Tel: Fax: Mumbai 14 th Floor, The Ruby 29 Senapati Bapat Marg Dadar (W), Mumbai Tel: Fax: th Floor, Block B-2 Nirlon Knowledge Park Off. Western Express Highway Goregaon (E) Mumbai Tel: Fax: Pune C-401, 4 th floor Panchshil Tech Park Yerwada (Near Don Bosco School) Pune Tel: Fax: Fast close 19

20 Ernst & Young Associates LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young Associates LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit Ernst & Young Associates LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata Ernst & Young Associates LLP. Published in India. All Rights Reserved. EYIN ED None This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. Key contacts Sandip Khetan Sandip.Khetan@in.ey.com Jigar Parikh Jigar.Parikh@in.ey.com Charanjit Attra Charanjit.Attra@in.ey.com Dr. Devesh Prakash Devesh.Prakash@in.ey.com Gopal Kuchibhotla Gopal.Kuchibhotla@in.ey.com Designer Initials EY LinkedIn EY India EY India careers ey_indiacareers