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The contents of this presentation are confidential. Copyright © 2018 Workiva.
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
5 Steps to Simplify Financial Close Reporting Process
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
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
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
Record Close Consolidate Analyze Report
Financial close process
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
Subledgers Subledgers & GLs Consolidated GLs Consolidated GLs, desktop tools
Desktop tools
Process Map Example
Record Close Consolidate Analyze Report
Financial close process
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
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
F AT
AT
F ATF
F A
F A
F A
F A
OF A
F AT
Subledgers Subledgers & GLs Consolidated GLs Consolidated GLs, desktop tools
Desktop tools
Process Map Example
Record Close Consolidate Analyze Report
Financial close process
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
A Accounting/Controllership
F FP&A T Tax I Audit
B Board of DirectorsR Investor Relations
O CFO/CEO Q IT
Subledgers Subledgers & GLs Consolidated GLs Consolidated GLs, desktop tools
Desktop tools
Meetings
Systems
Spreadsheet
Presentation
Document
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
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
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
Obtain manual inputs
Consolidate data Review and cleanse data
Ana
lysi
s
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
FA
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
Creating a Process Map
Start
Refresh/pull in trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
FA
FA 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
Creating a Process Map
Start End
Refresh/pull in trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
FA
FA FA 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
Creating a Process Map
System pulls:• GL XYZ, ABC, WXY ledger pulls• HR database pullManual inputs:• Tax splits by region• Acquisition revenue• A/R top customers
Creating a Process Map | Reference GuideRefresh/pull in
trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
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
5 Steps to Simplify Financial Close Reporting Process
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
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
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
FA
FA FA 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
System pulls:• GL XYZ, ABC, WXY ledger pulls• HR database pullManual inputs:• Tax splits by region• Acquisition revenue• A/R top customers
Start End
Identifying Risks in the ProcessRefresh/pull in
trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
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
Identifying Risks and OpportunitiesRefresh/pull in
trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
FA
FA FA 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
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
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
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
Identifying Risks and OpportunitiesRefresh/pull in
trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
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
System pulls:• GL XYZ, ABC, WXY ledger pulls• HR database pullManual inputs:• Tax splits by region• Acquisition revenue• A/R top customers
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
5 Steps to Simplify Financial Close Reporting Process
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
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 Question #4
5 Steps to Simplify Financial Close Reporting Process
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
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
5 Steps to Simplify Financial Close Reporting Process
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
Step 5: Continuously improve
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
5 Steps to Simplify Financial Close Reporting Process
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
Start End
Identifying Risks and OpportunitiesRefresh/pull in
trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
FA
FA FA 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 End
Identifying Risks and OpportunitiesRefresh/pull in
trial balance data
Obtain manual inputs
Consolidate data Review and cleanse data Perform analysis
Anal
ysis
• Financial statements• Trend analysis• Actuals vs. forecasts•Other: metrics/ratios, Q&A, etc.
Review analysis with stakeholders
A Accounting/Controllership
F FP&A Meetings
Systems
Spreadsheet
Presentation
Document
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
System pulls:• GL XYZ, ABC, WXY ledger pulls• HR database pullManual inputs:• Tax splits by region• Acquisition revenue• A/R top customers
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
The contents of this presentation are confidential. Copyright © 2018 Workiva.
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