5 steps to simplify your financial close and reporting process · •why you need to simplify your...

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5 Steps to Simplify Your Financial Close and Reporting Process

Dominick Fatibene and John McClellan

Questions

Qualifying for CPE

Presenters

Dominick FatibeneSenior Product Marketing Manager Workiva

John McClellanSenior Product Marketing Manager Workiva

Agenda

• Why you need to simplify your process

• 5 steps to simplify the process

• How Workiva can help you simplify

• Q&A

Quote

Land was wealth 300 years ago. So the person who owned the land owned the wealth. Then,

it was factories and production, and America rose to dominance. Today, it is information. And the

person who has the most timely information owns the wealth.

—From Rich Dad, Poor Dad by Robert Kiyosaki

Why Do We Need to Simplify?

Organizations that invest in process through systems and tools greatly improve the accuracy, timeliness, and visibility

needed to make critical business decisions that drive company and shareholder growth.

Limited risk of inaccuracy Increased results and returnsReduced process time

Results of simplified processes include

Step 1: Create a process map

Step 2: Identify risks and opportunities

Step 3: Find systems and tools for improvement

Step 4: Implement process change

Step 5: Continuously improve

5 Steps to Simplify Financial Close Reporting Process

What Is the Process Map?

Why should you map your process?• Increase your understanding of how the process works• Identify risks and potential improvement areas

What is a process map?• A step by step visual representation of a process:

• Timing/schedules• Role members (e.g., functions, organizations) • Systems/tools• Business units, regions, etc.

Members directly involved in a process should also be involved in drafting or reviewing the process map

Process Map Example

Record Close Consolidate Analyze Report

Financial close process



Leve

l 0Le

vel 1

Subledgers Subledgers & GLs Consolidated GLs Consolidated GLs, desktop tools

Desktop tools

Process Map Example



Refresh subledger data

Calculate and book accruals

Review booked accruals

Book other closing entries

Run ledger/ERP calculations

Review entity level balances

Perform account reconciliations

Review balancesw/biz owner

Consolidation ledger run

Mgmt reviews consol. balances

Elimination, tax entries booked

Reconcile consol. balances

Obtain data (systems/offline)

Review & cleanse data

Perform analysis

Review analysis w/stakeholders

Organize analysis into reports

Internal meetings

Press release/ earnings

10-Q/K filed

Leve

l 0Le

vel 1


Desktop tools

Process Map Example

















Perform analysis



Internal meetings

Press release/ earnings

10-Q/K filed

Leve

l 0Le

vel 1

A Accounting/Controllership

F FP&A T Tax I Audit

B Board of Directors

A

B

R Investor Relations

R

R

O CFO/CEO

O

I

I

FA

A

A

F

A

A

A

Q IT

QQ

F AT

AT

F ATF

F A

F A

F A

F A

OF A

F AT


Desktop tools

Process Map Example

















Perform analysis



Internal meetings

Press release/ Earnings

10-Q/K filed

Leve

l 0Le

vel 1


F FP&A T Tax I Audit

B Board of DirectorsR Investor Relations

O CFO/CEO Q IT


Desktop tools

Meetings

Systems

Spreadsheet

Presentation

Document

Email

A

A

A

A

F

F A

A

A

Q

F

Q

F AT

AT

F AT

F A

F A

F A

F AT

B

R

R

O

I

I

F A

F A

O

Process Map Example

How many people are involved in your organization’s financial close and reporting process?

A. 1–5B. 6–10C. 11–15D. 16–20E. 21+

Polling Question #1

Start

Creating a Process MapRefresh/pull in

trial balance data

Obtain manual inputs

Consolidate data

Anal

ysis


F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA

FA

System pulls:• GL XYZ, ABC, WXY ledger pulls• HR database pullManual inputs:• Tax splits by region• Acquisition revenue• A/R top customers

Start

Refresh/pull in trial balance data


Consolidate data Review and cleanse data

Ana

lysi

s


F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA

FA


Creating a Process Map

Start



Consolidate data Review and cleanse data Perform analysis

Anal

ysis

• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.


F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA

FA



Start End




Anal

ysis


Review analysis with stakeholders


F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA




Creating a Process Map | Reference GuideRefresh/pull in

trial balance data



Anal

ysis




F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA

Indicate the start and end of the process

Identify role members in every process step

Start End

Show the tools and systems used in

every step

Tips and Tricks

Determine the boundaries

Collaborate with others

Obtain buy-in from all stakeholders

Understand that data is complex and critical

How does your team gather data for their financial close today? Check all that apply:

A. Email/word of mouth (telephone, meetings, etc.)B. ERPs (general ledgers, subledgers, etc.)C. Workflow toolsD. Desktop tools (spreadsheets, presentations, etc.)E. OtherF. Not sure

Polling Question #2

Understanding Risks

Risk: refers to any negative outcome that may result from a breakdown in a process

Risks increase from multiple data sources, manual steps, and added steps in a process

Brainstorm:

• Can numbers be pulled incorrectly out of a system/ERP?

• Does anyone submit numbers offline (e.g., phone calls, emails)?

• Is analysis prepared via desktop tools (e.g., spreadsheets)?

Ask process owners about the past:

• Were inaccurate numbers collected or used within analysis?

• Were incomplete or inaccurate numbers reported?

• Was there an inadequate amount of time to review reports?

How to identify risks in your process:

Start End

Identifying Risks and OpportunitiesRefresh/pull in

trial balance data



Anal

ysis




F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA



Start End

Identifying Risks in the ProcessRefresh/pull in

trial balance data



Anal

ysis




F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA

Multiple tools

Multiple data sources

Data “hand-offs”

Multiple owners/collaborators

# of analysis reports created with similar

information

# of versions shared with stakeholders

Manual data consolidation

Manual inputs

Manual adjustments

Understanding Opportunity

Opportunity: refers to any improvement that can reduce complexity and increase efficiency

Automation, visibility, and collaboration drive increased control and reduce the likelihood of risks in a process

Brainstorm:

• Can steps be removed or simplified?

• Can data inputs be reduced, centralized, or automated?

• Can you improve communication, visibility, and collaboration?

Ask process owners about the past:

• Are there pain points where they would recommend improvement?

• How much time did users spend preparing analysis?

How to identify opportunity in your process:

Start End


trial balance data



Anal

ysis




F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA


System pulls:

• GL XYZ, ABC, WXY ledger pulls

• HR database pull

Manual inputs:

• Tax splits by region

• Acquisition revenue

• A/R top customers

Start End

Identifying Opportunities in the Process

Refresh/pull in

trial balance data

Obtain manual

inputs

Consolidate dataReview and

cleanse dataPerform analysis

An

aly

sis

• Financial statements

• Trend analysis

• Actuals vs. forecasts

•Other: metrics/ratios, Q&A, etc.

Review analysis

with stakeholders


F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA

Reduce/automate

# of manual

inputs

Automate/standardize

data pulls and

consolidate

Improve collaboration

between stakeholdersCentralize analyses

into strategic

files/reports

Move desktop

tools to cloud

SaaS solutions

Eliminate multiple

“offline” versions of

analyses

Centralize/automate

data collection

Start End


trial balance data



Anal

ysis




F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA

Risks/breakdowns from

Opportunities

•Data submitted incorrectly•Data not updated/missing•Disconnects between multiple sources of data

•Automate offline data inputs (e.g., email, phone)•Centralize ERP data pulls•Reduce number of owners


What are some of the risks you believe are prevalent in your financial close process? Check all that apply:

A. Input errors (data submitted incorrectly)B. Consolidation errorsC. Version control issuesD. Timing of informationE. Lack of visibilityF. Lack of defined roles

Polling Question #3

Choosing the Right Technology

Collaboration and productivity

Data collection and consolidation

Data preparation

Connected data across reports

Repeatable reporting framework

Permissions and tasking

Cloud tools simplify processes through increased security, quality, and collaboration

What software does your organization currently use to prepare analysis during your financial close? Check all that apply:

A. Desktop tools (spreadsheets, documents, presentations)B. BI visual analytics toolsC. Consolidation system dashboards (i.e., canned reports)D. WdeskE. Not sure

Polling Questin #4

Develop an Action Plan

Develop a plan Track progress Train process ownersTest the process

ü Align action items to your process goals

ü Track progress towards achieving goals

ü Hold owners accountable


Step 1: Create a map of the existing process

Step 2: Identify risks, breakdowns and improvement opportunities

Step 3: Identify systems and tools that will limit risks and realize improvements

Step 4: Implement the changes to the organization


Continuous Improvement Circle

Debrief on the process• Obtain feedback routinely• Brainstorm on what went well and what could be

improved

Perform the process

Map process, risks, and improvements• Update process maps and review with

stakeholders• Research improvements

Implement process changes• Develop action plans • Identify champions and owners• Review progress• Train process owners on enhancements

Start End


trial balance data



Anal

ysis




F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA


Start End


trial balance data



Anal

ysis




F FP&A Meetings

Systems

Spreadsheet

Presentation

Document

Email

FA

FA FA FA FA

FA

Risks/breakdowns from

Opportunities

•Data submitted incorrectly•Data not updated/missing•Disconnects between multiple sources of data

•Automate offline data inputs (e.g., email, phone)•Centralize ERP data pulls•Reduce number of owners


Presentation

Data Collection

Management ReportFor fiscal 2017, 17 thousandunits were provided by operating activities and units.

Master Spreadsheet

Document

Mobile

366 374 265 786 935 599 3,325

365 220 724 229 317 755 5,935

874 5,448 580 44 234 927 8,107

1,605 6,042 1,569 1,059 1,486 2,281 17,367

New York

193 599

231 755

424 1,354

Seattle

826 786

724 249

1,550 1,035

Amsterdam

366 374

645 280

1,011 654

Workiva: Connected and Continuous Reporting

Dynamic documents

Complete audit trail

Collaboration with control

Easy to use/familiar

Customer support and success

Multiuse business reporting platform

• Gartner evaluated 10 cloud financial close solutions, including Workiva, based on 11 criteria

• Gartner placed Workiva in the furthest position to the right in the Leaders quadrant based on its completeness of vision

• This Magic Quadrant presents a global view of the primary vendors of cloud financial close solutions

Gartner, "Cloud Financial Close Solutions" by John Van Decker and Christopher Iervolino, July 2018

Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Leader in Gartner's Magic Quadrant

Entertainment

Investments

Transportation

Consumer Goods and Retail

Government

Life SciencesInsurance

Manufacturing

Energy and UtilitiesBanking

Technology

Higher Education

5 steps to simplify your financial close and reporting process · •why you need to simplify your...

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