The Challenges of Modern Financial Reporting. Girish Muzumdar

Transcription

1 The Challenges of Modern Financial Reporting Girish Muzumdar

2 Agenda

3 The Survey

4

5 The Essence of the Survey Financial reporting continues to be a major challenge for most finance teams for several significant reasons: The widespread adoption of narrative (text) in financial reporting. While certainly valuable, narrative contributions are notoriously difficult to manage, revise, and maintain. The need to integrate multiple data sources, and the accompanying challenges with data consistency and tracking. The need to collaborate with contributors and stakeholders throughout the reporting process while still relying on traditional communication vehicles such as . A general lack of data, workflow and process control.

6 Survey Scope The Demographics of the Survey Participants

7 Question 1: After the books are closed, what types of reports/documents do you produce to communicate to key stakeholders? (check all that apply)

8 Question 2: How many of these reports/presentations in total are produced per month? Per quarter? Number of Reports/ Presentations per Month Number of Reports/ Presentations per Quarter

9 Question 3a: On average, how long does report/presentation production take per month?

10 Question 3b: On average, how long does report/presentation production take per quarter?

11 Question 4a: How many departments are (or should be) involved in pulling these reports together?

12 Question 4b: How many individuals are (or should be) involved in pulling these reports together?

13 Question 5: Is there an adequate workflow process in place to manage contribution, approval, submission, etc.?

14 Question 6: How many sources of data are involved?

15 Question 7: What applications are typically used to create the reports/documents? (check all that apply)

16 Question 8: On average, what percentage of the document is narrative vs. financial information? Question 9: What types of narrative are utilized?

17 Question 10: What forms of communication are used during this process to manage the collection of information? (check all that apply)

18 Question 11: What reporting challenges do you face? (check all that apply)

19 Summary The Harsh Reporting Realities based on the study Reporting Eats Up Valuable Professional Time 2 Communication Is Fragmented And Untraceable 4 Narrative Is Essential for Financial Reporting Information Is Collected from Various Sources Excel Alone Isn t Enough For Modern Financial Reporting

20 Conclusion In order to address these reporting challenges, Finance needs to be able to: Create a wide variety of reports faster and with fewer resources Streamline and track collaboration among contributors and business owners Effectively and efficiently manage increasing volumes of narrative Collect information from multiple data sources in a way that ensures data integrity and builds in consistency Gain greater insight & control over workflows and reviews Leverage widely used tools such as Excel in a more effective way

21 The Modern Role of Finance

22 Why: Objectives of an office of Finance Modern office of Finance objectives PROCESS PRODUCTIVITY REGULATIONS & COMPLIANCE BUSINESS PARTNERING FORWARD LOOKING Fast Close / Consolidation Corporate Tax Reporting Analytics / Artificial Intelligence Rolling Forecasts & Predictive Forecasting Data Governance IFRS / ASC Profitability Analysis Budgeting Process Governance Solvency II & EBA (FINREP/COREP) Strategic Initiatives Operational Planning Data Integration Integrated Reporting Transfer Pricing Integrated Financial Planning Reconciliations XBRL Collaboration Performance Management

23 Strategic role of Finance Finance is actively engaged in operations IT Dept. Plant / Production CFO Sales & Marketing Plant / Production

24 How does your company stack up? Source : Hackett Benchmarking & Research Process Average World Class Closing Cycle 5 8 Days < 2 Days Financial Planning 4 months 1 month Level of Budget Detail 230 line items 15 line items % of time on Forecasting 20% 44% Cost of Finance 1.15% of Revenue < 0.53% of Revenue FTEs per $B Revenue 114 < 28

25 The Goal of Finance High Value and Reduced Cycle Time Faster Closing More time for analysis ensured accuracy More detailed management information Better, faster business decisions Improved business performance! Average 6 Days 12 Days Collect Data World Class Collect Data Close Adjust Report Close Adjust Report Analyse More time to Analyse and Forecast!

26 Finance Transformation Platform

27 Modern Finance needs a Transformation Platform Combining FP&A and Treasury Functions with Regulatory, Statutory and Management Reporting

28 Analytic Information Hub The Analytic Information Hub empowers finance and business users to capitalize on and govern massive amounts of granular data to uncover hidden value and deliver business insights that drive more informed and confident decision-making.

29 Business value for multiple roles Finance controlled transformation platform CFO CONTROLLER FP&A IT CEO Capitalize on Big Data Gain key insights Time for Forward Looking to connect strategy to drive improved operating results Handle new Regulation Handle in-depth analytics Faster results Unified solution for CPM + Regulatory Handle in-depth planning & analytics Align Operations & Finance Faster results More comprehensive Plans & Forecasts Non-disruptive solution Single extensible solution Low IT involvement My CFO can provide better guidance as a business partner Make the right decisions faster HARNESS AND TRANSFORM RAW DATA INTO ACTIONABLE, AUDITABLE INFORMATION IN A FINANCE CONTROLLED ENVIRONMENT

30 Modern Finance Look & Feel

31 Processes with Workflows Support for Multiple Processes with guided Workflow and Task Flowchart

32 CCH Tagetik Landing Page HTML5 Enabled Browser based (Can be opened on any device)

33 Summary Dashboard Complete view of the organization wide Budgeting & Planning Process

34 Detail Summary Entity Hierarchy View of the entire Budgeting & Planning Process status

35 Reports and Data Entry Microsoft Excel and Web Based Reports and Data Entry Forms

36 Microsoft Excel based Tagetik Report MS Excel based report with data and security coming from Tagetik

37 Web-based Report Automatically converted Web-based report by Tagetik

38 Using best of MS Excel features for calculation Business users can see the output of the calculation on the form Output Report (No Data Entry) Data Entry (Yellow Cells) Protected Cells (Calculated - Blue)

39 Auto converted MS Excel based forms to Web-based forms CCH Tagetik converts forms automatically without any user intervention

40 In-built Spreading Multiple Spreading options for planning at the period total level

41 In-built Locking Ability to lock periods from being affected by spreading

42 Data Entry Forms Controlled and Validated Data Entry in Tagetik

43 Drop-downs available to guide users on options available Easily Navigation in Data Entry Form

44 Cell-level Commenting and Attachments Comments and Attachments are managed by Tagetik and visible in the Report

45 Drill-down Slice & Dice to the lower level dimensions on MS Excel for any cell in the report

46 Ability to Drill-down and Pivot on Report Data on the Web Easy access to Pivot and Drill-down analysis on the Web

47 Drill-through Details of underlying Transactional Data

48 Collaborative Office Narrative Reporting

49 Last Mile of Finance Template based shared document management

50 Workflow based Collaborative Office Workflow to manage approvals and data entry

51 Tight integration with data from Tagetik Collaborative Office integrates Word capabilities with data sourced from Tagetik

52 Multiple collaborators Single report can be simultaneously worked on by multiple people with different accesses

53 Standard Dashboards Standard Tagetik Dashboards made in MS Excel Plug-in

54 Tagetik Dashboard Real-time Web based interactive Management Dashboards

55 Pivot and Filter Pivot, Filter and Heat map on individual dashboard elements

56 Ad-hoc Drag & Drop Reporting Business user driven ad-hoc reporting and analysis

57 Report Generation Easily created, copied and modified

58 Report Generation Easily created, copied and modified

59 Ad-hoc Form Output form saved locally by the user for specific needs of single user Save-as