www.trintech.comwww.trintech.com

TransformingTransformingthethe LAST MILELAST MILE ofof

FINANCEFINANCE

Theresa Clark – Advisor, Finance TransformationMargaret Kelly – Financial Sales Consultant, Trintech

May 23, 2012

Theresa Clark – Advisor, Finance TransformationMargaret Kelly – Financial Sales Consultant, Trintech

May 23, 2012

Optimize- Agility through IntegrationPart 4 of a 4 Part Series

Optimize- Agility through IntegrationPart 4 of a 4 Part Series

Today’s PresenterToday’s Presenter

Theresa Clark – Senior Advisor – Finance Transformation

CPA

Former partner of Andersen, LLP and managing Director

at BearingPoint

Seasoned finance professional with over 20 years of

finance experience leading finance transformation,

financial close improvement and post merger integration

for major companies.

Specialist in transforming compliance, reconciliation and

close financial processes

Member of the American Institute of Certified Public

Accountants

Who is Trintech?Who is Trintech?

Trintech is a leading

provider of integrated

solutions for The Last Mile

of Finance.

Our solutions optimize the

entire Record-to-Report

cycle resulting in

transparent financial

measurement and

governance.

• Over 650 Industry leaders

use Trintech

• 26 of the Fortune 50

• 100+ of the Fortune 500

What Does Optimize Address?What Does Optimize Address?

I. The Last Mile – Quick Recap of the Issues

II. The Goals

III. Overview of the Transformation Stages

for the Last Mile of Finance

IV. Optimize – Paperless Reference documents Documentation Journal entries Shared services/outsourcing Issues management Priority setting Performance monitoring

VII. Questions

OptimizeFocusing on sophisticated integrations, dependencies and reporting to bring agility

What is the Last Mile of Finance?

Inform

C

Prepare&

Report

GroupClose

GL Close

& Consolidate

Local Close

Plan Scope Schedule Report Forecast

Plan

Procure to Pay

Order to Cash

ACCURACY CONTROLS TIMELINESS

THE BRIDGE TO REPORTING TRANSPARENCY

Budget

Comply

Perform Manage

The Interdependencies of the Last Mile of FinanceThe Interdependencies of the Last Mile of Finance

GL

Rec

ons

Ope

ratio

nal

Rec

ons

Clo

se +

R

epor

ting

ManagementReviewer/Supervisor

Performers

Com

plia

nce

40 + DaysQ start Q end

90 days

Import tasks & controls

Schedule tasks

Perform

Monitor Roll forward

Review File

Support inE-Record

Form10Q10K

Taxonomy Tagging XBRL Filing

XBR

L

Scope Auto Schedule tasks

Perform compliance tests

Remediate

Report & Certify

Redesign

E-Record

Design & Establishcontrols

Review & Monitor

Assign & Schedule

Audit/External

Reconcile & research

Monitor/Review/Approve

Remind, escalate

Report, Analyze, Support

Prepare

-10 days

Remind, escalate

Research & Resolve

Manage exceptions

Load Balances

Auto match

Adjust & Balance

Report, Analyze, Support

Load balancesVerify complete

Manage issues

Ledgers

Performers

What are the Goals of Finance Transformation?What are the Goals of Finance Transformation?

Confident

Business Goal: An Automated and Standardized Finance Process

Streamlined Agile

Accuracy of the Foundational Numbers• Monitor key controls• Enterprise collaboration• Better information = better

decisions• Isolate and escalate issues rapidly

Standardize and Consolidate Processes• Focus on value-added activities• Improve service levels• Train employees faster• Automation = more work by

fewer people including SSC’s

Supportive Environment for

Enterprise Growth• Rapid integration of acquisitions• Smoother transitions• Framework to support new

initiatives (XBRL, IFRS, TAX)

Lack visibility into processes

Desire for top down approach

Unacceptable level of risk

Uncertain

Cycle times too longOverlapping requirements

Stressed personnel

Inefficient

Lack flexibility to absorb changes

Turnover is disruptive

InflexibleThe Drivers of Change

Optimize

Energize

Analyze

Strategize

Where are We Within the Last Mile of Finance Maturity Model?Where are We Within the Last Mile of Finance Maturity Model?

Manual Process Improvements

• (Manual) detective controls & procedures

• Manual process improvements

• Legacy apps• Heavy spreadsheet use

• Email, Word, shared drives

Semi‐Automated Process

• Semi‐automated controls

• Point solutions for collaboration (e.g. SharePoint), process management and compliance

• Lack of controls across data streams

• No single view into close and reporting process

Manual Processes

• Disjointed processes• Legacy apps• Heavy spreadsheet use

• Email, Word, shared drives

Fully‐Automated& Optimized

• Best practices• (Automated) preventive controls embedded into business process

• Consolidated view into close & reporting process

• Fully integrated with XBRL, close, exception mgt, reconciliations, and compliance

• Automated and collaborative global workflow

• Real‐time process optimization

Efficiency, Transpa

rency, Qua

lity

Cost of Finance, Risk

TODAY WE ARE HERE

Polling Question #1Polling Question #1

It is said that world class finance organizations make

excellent use of fewer more highly skilled people through

efficient and effective delivery

For my company this is:

a. True

b. Somewhat true

c. We are not there

Optimize: DocumentationOptimize: Documentation

Extend Tools to Allow Paperless Close

• Capture documentation electronically

• Allow for electronic document markup

• Utilize e-binders

• Enable external access to e-binders

• Enable limited access to close/compliance tools

Optimize: Reference DocumentsOptimize: Reference Documents

Current, Relevant References Linked

• Associate required reference documents with

each tasks (e.g. manuals, legal documents,

rules)

• Provide/require templates for documentation

where standard format desired

• Use reference to provide detailed procedures

if required

• Centralize references for ease of linking and

updating

Optimize: Journal Entries (JEs)Optimize: Journal Entries (JEs)

Automate Creation, Approval, Timing

• Create JE’s and integrate posting to ERP

• Streamline task management around JEs

• Automate creation of JEs from account reconciliations

• Track full life cycle of JEs

Polling Question #2Polling Question #2

My company manages and tracks manual journal entries

efficiently and effectively?

a. True

b. Somewhat true

c. False

Optimize: GovernanceOptimize: Governance

Integrate Governance

• Link controls to accounts

• Link accounts to line items

• Link compliance to close task

Creates matrixed visibility across close,

compliance and accounts

• What controls tests occur for receivables?

• What close task occur on this account?

• Which close and compliance tasks/test occur for this

account?

Optimize: Shared Services/OutsourcingOptimize: Shared Services/Outsourcing

Manage Share Service Relationship

• Create dependencies reports to support

agreements/handoffs

• Use workflow to enable global clock

• Use collaboration tools to gather date from

multiple SSCs efficiently

Optimize: Issues Management Optimize: Issues Management

Capture and Manage Issues in Single System

• Develop system-generated issues based on business rules– Account balance intolerance

– Unusual activity levels

• Wrap issues creation in workflows to

allow swift resolution by right team

• Report and track issues on dashboard

Optimize: Priority Setting Optimize: Priority Setting

Manage Scope of Work with Business Rules

• Use business rules to scope requirements

– Determine account reconciliation timing

– Establish account review requirements

– Gauge materiality of entities

Change levels of efforts based on materiality and

risk

– Move accounts out of testing based on business

rules

– Change tasks based on activity levels

Polling Question #3Polling Question #3

We are able to adjust the scope and timing of last mile efforts…

a. With ease

b. With some effort

c. Very difficult to adjust scope and timing

Optimize: Manage Performance Optimize: Manage Performance

Automate Performance Indicators

• Develop performance measures triggered by integration with

system/events

– Return monitoring

– Account tolerance

– Late events

• Allow other system to trigger management alerts

• Create reports with performance success/failure status

Optimized - What Might that Look LikeOptimized - What Might that Look Like

Key information

Custom Alerts

Status by Day

Personal reports

Integrated governance

Real time drillable data

Questions?Questions?

Thank you for participating.

For further information please contact:

Hilliary.Opseth@trintech.com (USA)+1 800 416 0075

Carol.orr@trintech.com (EMEA)+44 (0) 207 628 5235

Continue the Conversation – Please visit our website at www.trintech.com

www.trintech.comwww.trintech.com

TransformingTransformingthethe LAST MILELAST MILE ofof

FINANCEFINANCE

Thank YouThank You

Theresa Clark – Advisor, Finance TransformationMargaret Kelly, Financial Sales Consultant