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RE-VALUING THE MONTHLY CLOSE We appreciate your patience as we allow registrants a little extra time to log into the web seminar. Please note there will be silence on your phone line until the moderator begins the presentation. Guest speakers: Moderated by CPA.com
Transcript of RE-VALUING THE MONTHLY CLOSE - CPA.com · PDF fileRE-VALUING THE MONTHLY CLOSE ... •He...
RE-VALUING THE MONTHLY CLOSE
We appreciate your patience as we allow registrants a little extra time to log into
the web seminar. Please note there will be silence on your phone line until the
moderator begins the presentation.
Guest speakers:
Moderated by CPA.com
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Facilitator
Marketing Director, CPA.com
Helps lead the strategic marketing planning and development at CPA.com
Over 15 years of direct and digital marketing experience in B2B verticals including media and trade organizations
MBA, Marketing, College of William and Mary, VA
Vishal ThakkarMarketing Director,[email protected]
CPA.com PRODUCTS & SERVICES
FIRM CLOUD BASED SOLUTIONS
EDUCATION & RESOURCES
MISSION
Empowering CPAs and Businesses For The Digital Age
• Mike is the Chief Operating Officer of XCM Solutions and an enterprise level leader, investor, and trusted board member of software, technology, and information service companies, achieving exceptional financial and operational results.
• He has extensive experience leading fast-paced, customer focused organizations from over 3,000 employees to start-ups and joint ventures leveraging innovative forward-looking technologies that disrupt the norm while sustaining long-term profitable growth.
• Prior to XCM Solutions, he was most notably:
• President and CEO of CCH Tax and Accounting, North America at Wolters Kluwer
• Current board member at XCM and AverQ, former board member of Doc.It
• Chief Revenue Officer of Realpage, Inc
• CMO for Advantage MOTI a joint venture with Datamatics, Ltd.
• Vice President, Business Development and Strategic Accounts at Thomson Corporation
• Mike graduated from Cleveland State University with a degree in Accounting
• He is a member of the National Association of Corporate Directors
Our Guest Speakers Today
Mike Sabbatis
Chief Operating Officer,
Intacct’s Senior Director of Product Marketing
Prior to Intacct, Vijay was at Taleo, where he helped HR leaders use workforce data to make their organizations more effective.
Throughout his 20 years of experience in the software industry, Vijay has always been focused on how organizations can capture and analyze the right data to optimize performance.
Vijay RamakrishnanSr. Director, Product Marketing,[email protected]
Our Guest Speakers Today
D I S P A R A T E
W O R K F L O W S
CLARITY CONTROL
ACCOUNTABILITY FLEXIBILITYE N A B L E S L E A D E R S T O F O C U S O N :
Revenue + Profit + Compliance + Taxes + Budgets
Financial Reporting + Accounting Closure
TAXD A T A
FINANCED A T A
ACCOUNTING
& AUDITD A T A
Global Presence
Trusted Partner of the
AICPA & CPA.com 500+ Customers
25,000+ Users
35% of the top 100
CPA Firms
Industry Leading
Clients
Scalability
> 2,000 Client
Accounting
Businesses
> 1,000,000 Processes
Annually
> 140,000 Tax Returns
Processed
Largest Tax Return is >
2,600 pages
Customer Documented
30% Productivity Gains
Corporate Tax,
Accounting, & Finance
WHO WE ARE
• Goals: Re-Valuing the Monthly Close Process• Automating Processes• Creating Quality KPI’s • Interdependencies• Empower On-Demand Accounting
• Agenda
• 8 Truths & Challenges
• Visibility Across the Enterprise
• Automating Monthly Close Process
• Capacity Creation and Increased Value
AGENDA
8 SIMPLE TRUTHS: FACING TAX, ACCOUNTING AND FINANCE
Handoffs
Interdependencies
High Pressure Deadlines
Lack of Visibility
Point Solutions
Manual Processes
Competing
Priorities
Work Compression
81% said they were not held accountable
WEAK EXECUTION
87% had no clear idea of what they should be
doing to achieve the goal
Tax Planning
Tax Transactions
Tax Risk Management
Transfer Pricing Corporation
Tax Accounting (US)
Corporation Tax Accounting (non-US)
Corporation Direct Tax Compliance
(US, Federal and state)
Corporation Direct Tax Compliance
(Non US)
Sales & Use Tax
VAT/PST/GST
Real & Personal Property Tax
Withholding Tax
Manage policies and
procedures
General accounting setup
External financial reporting
Month, Quarterly, and Year-
end closure accounting
Perform inventory controls
Monitor and Maintain Market
Specific Control Environment
Perform BPO governance
Accounts Payable
Accounts Receivable
Expense Reimbursement
Indirect Procurement
Process customer credit
Manage Order Entry Invoice
customer
Manage and process
collections
Manage and process
adjustments/deductions
Payroll processing
Financial Planning and
Analysis - FP&A
Perform planning budgeting
and forecasting
Evaluate and manage financial
performance
Provide Decision support
Perform cost analysis
(Manufacturing Finance)
Manage fixed asset project
accounting
Treasury
Manage treasury policies and
procedures
Manage cash Manage in-house
bank accounts
Manage debt and investment
Manage financial risks
Ad Hoc & On-Demand Processes
PROCESS LIBRARY: ACCOUNTING, TAX AND FINANCE
PRIORITIES: WHAT PROVIDES GREATEST VALUE
MONTHLY CLOSE PROCESS
MONTHLY CLOSE: CHALLENGES & OPPORTUNITIES
*Adra Match Financial Close Benchmark Report 2015)
**KPMG CFO Insights, Issue 6: Leaning the month end close 2013
• Closing process takes too long: 90% of accounting professional are under pressure to close faster
• Poor execution: Only 39% of finance staff are satisfied with the quality of the closing process
• Too many errors: 66% don’t trust the numbers
• Low Value Output: Only 40% of process adds value, and 10% of process necessary, but redundant
AUTOMATING MONTHLY CLOSE
Intacct: Best-in-Class Cloud ERP
customers11,000+
monthly transactions by top customer1,000,000+
users by top customer3,000+
concurrent revenue schedules8,800,000+
preferred provider of financial applications
strategic partners
partner ecosystem120+
run on IntacctTop IPOs
The Pace of Change is Increasing the Need for Insight
“Are we hitting our revenue per customer targets?”
The Pace of Change is Increasing the Need for Insight
“Why are operating costs higher for our newest locations?”
“Are we hitting our revenue per customer targets?”
The Pace of Change is Increasing the Need for Insight
“Are our new services offerings as
profitable as the existing ones?”
“Why are operating costs higher for our newest locations?”
“Are we hitting our revenue per customer targets?”
The Pace of Change is Increasing the Need for Insight
“Are our new services offerings as
profitable as the existing ones?”
“Why are operating costs higher for our newest locations?”
“Are we hitting our revenue per customer targets?”
“Has the new pricing model reduced churn?”
The Pace of Change is Increasing the Need for Insight
CFOs Are Still Viewed as the “Single Source of Truth”
The holders of quantitative truth
The truth that’s the basis of outside investment in the organization
The truth that helps inform internal decisions
Impartial: Investment decisions don’t usually impact finance operations
Change in amount of data contained in management reports over past two years
Source: CEB, “High-Impact Business Performance Management”
The Pace of Change is Increasing the Need for Insight
Decreased15%
Stayedthe same
21%Increased
64%
Reporting statistics
• Average length of management report: 21 pages
• Data points: 6,000 – 7,500
Change in amount of data contained in management reports over past two years
Source: CEB, “High-Impact Business Performance Management”
Decreased15%
Stayedthe same
21%Increased
64%
The Pace of Change is Increasing the Need for Insight
Decreased15%
Stayedthe same
21%Increased
64%
Change in amount of data contained in management reports over past two years Average amount of data deemed
useful in management reports
Useful5%
Not useful95%
BUT…
Reporting statistics
• Average length of management report: 21 pages
• Data points: 6,000 – 7,500
Source: CEB, “High-Impact Business Performance Management”
The Pace of Change is Increasing the Need for Insight
Business Change is Increasing the Complexity of the Close
The Lack of Automation Hinders a Fast Close
Manual allocations and accruals for expenses
Manual entries for depreciation, amortization, and adjustments
Manual revenue recognition
Manual consolidations, currency conversions, intercompany eliminations
Best-in-Class Cloud ERP: Delivering Broader Automation
Reporting & Dashboards
Sales Order
Receivables
Fixed Assets
Payables
Purchasing
Project Accounting
General Ledger
Reporting & Dashboards
Sales Order
Receivables
Fixed Assets
Payables
PurchasingMulti-Entity &
Global Consolidation
Project Accounting
Revenue Management
Contract Management
Time & Expense
Management
General Ledger
Subscription Billing
Best-in-Class Cloud ERP: Delivering Broader Automation
Reducing the Time to Insight for Global Operations
“I’ll be able to add new entities into our financial system in minutes and have immediate access to everything
I need for full company consolidations.”
− Jim Harper, Controller, DataXu
Advertising and marketing platform
Growth drivers
o Global expansion, acquisitions
Reduced close from 20 to 8 days
Key insights
o Revenues by campaign, service, industry
o Profitability by campaign
o True profitability by country through allocations
Best-in-Class Cloud ERP: Faster, Deeper Business Insights
Financial metrics, in business context
Faster insights from rich visualizations
Deeper insights from drill-down
Native to the financial system of record
o For information in real-time
o Without external tools
RE-VALUING THE MONTHLY CLOSE
RE-VALUING THE MONTHLY CLOSE
People
Process Technology
• Define team roles and capabilities
• Map the process
• Break the process into discreet activities
• Measure process and quality (KPI’s are trackable)
PRODUCTIVITY ENABLEMENT: IMPROVING THE PROCESS
People
Process Technology
MONTHLY CLOSE PROCESS: WITH PRODUCTIVITY ENABLEMENT
Process
Productivity Enablement incorporates a view of the human element interacting within the process.
INTERDEPENDENT CULTURE
Tax Accounting Finance Operations
Entities Project Tasks Assign Due Date Status Knowledge
XCM Productivity Enablement Platform
People
Process Technology
• Process Timeline
• Application Handoff
• Efficient Order of Operations
Technology
TECHNOLOGY ALIGNMENT: REAL TIME PROCESSING
PRODUCTIVITY ENABLEMENT: Capacity Expansion
4 key benefits that lead to Productivity Enablement
Visibility: Having a clear view provides the insight needed to make resource adjustments or changes.
Control: Empowerment to identify departmental bottlenecks, implement process efficiencies, and deliver quality results.
Flexibility: The ability to enact continuous process improvements while increasing efficiency.
Accountability: A real-time “single-source” of the truth for every assignment, status, task and deadline.
Productivity Enablement
Visibility Control
Accountability Flexibility
VISIBILITY
Technology
CONTROL
Checklist
Technology
ACCOUNTABILITY
Technology
FLEXIBILITY
Technology
SUMMARY
1
23Align Solutions
with People Process and Technology
EnactProductivity Enablement
Re-Value Monthly Close
QUESTIONS?
Mike SabbatisCOO, XCM [email protected]: /mikesabbatiswww.XCMCorporate.com
Vijay RamakrishnanSr. Director, Product Marketing, [email protected]
https://us.intacct.com
