Sometimes it takes a while for technology to fundamentally change how work is done. That’s because several innovations usually have to come together before a transformation can occur. For instance, Karl Benz created the first practical motorcar in 1885, but consumers would have to wait until the 1920s for the modern automobile. Computerized accounting systems originated in the 1950s but it’s only now that technologies have evolved and come together to fundamentally change how work is done.
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Topics:
ERP,
Office of Finance,
close,
closing,
CFO,
controller,
Financial Performance Management,
ERP and Continuous Accounting
I recently attended BlackLine’s annual user conference. The company aims to automate time-consuming repetitive tasks and substantially reduce the amount of detail that individuals must handle in the department. The phrase “the devil is in the details” certainly applies to accounting, especially managing the details in the close-to-report phase of the accounting cycle, which is where BlackLine plays its role. This phase spans from all the pre-close activities to the publication of the financial...
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Topics:
automation,
close,
closing,
Consolidation,
control,
effectiveness,
Reconciliation,
CFO,
compliance,
Data,
controller,
Financial Performance Management,
FPM,
Sarbanes Oxley,
Accounting,
process management,
report
Robots of the physical sort are not about to take over finance and accounting but we have arrived at the age of “Robotic Finance”. I coined this term to focus on four key technologies with transformative capabilities: artificial intelligence and machine learning, robotic process automation, bots and natural language processing and blockchain distributed ledger technology. Embracing these technologies will enable any department to redefine itself as a forward-looking strategic partner to the...
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Topics:
Machine Learning,
close,
closing,
Robotic Process Automation,
Artificial intelligence,
blockchain,
AI,
Accounting,
bots
For several years, I’ve commented on a range of emerging technologies that will have a profound impact on white-collar work in the coming decade. I’ve now coined the term “Robotic finance” to describe this emerging focus, which includes four key areas of technology: Artificial intelligence (AI) and machine learning (ML), robotic process automation (RPA), bots utilizing natural language processing, and blockchain distributed ledger technology (DLT), each of which I describe below. Robotic...
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Topics:
ERP,
Machine Learning,
close,
Consolidation,
Continuous Accounting,
Reconciliation,
CFO,
Robotic Process Automation,
blockchain,
AI,
natural language processing,
Accounting,
RPA,
bots,
voice automation
Robotic process automation (RPA) relies on programming or the application of analytical algorithms to execute the most appropriate action in an automated workflow. RPA enables business users to configure a “robot” (actually, computer software) to interact with applications or data sources to process a transaction, move or manipulate data, communicate with other digital systems and manage machine-to-machine and man-to-machine interactions. This technology is gaining increasing notice by finance...
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Topics:
Operations,
automation,
close,
closing,
Continuous Accounting,
finance,
banking,
Robotic Process Automation,
Accounting
Workiva’s Wdesk, a cloud-based productivity application for handling composite documents, will have a larger role to play as companies adopt new revenue recognition standards governing accounting for contracts. The Financial Accounting Standards Board (FASB), which administers Generally Accepted Accounting Principles in the U.S. (US-GAAP), has issued ASC 606 and the International Accounting Standards Board (IASB), which administers International Financial Reporting Standards (IFRS) used in most...
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Topics:
close,
closing,
XBRL,
CFO,
Document Management,
SEC,
10Q,
SEDAR,
Composite document
Kofax offers Kapow, robotic process automation (RPA) software used to acquire information from a range of sources without human intervention and without having to write code. These sources include websites, applications, unstructured documents, data stores and desktop spreadsheets. RPA software does repetitive, low-value work that otherwise may be performed by person. It saves time in these tasks, completing them sooner and freeing skilled individuals to concentrate on work that utilizes their...
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Topics:
Office of Finance,
Operations,
close,
finance,
banking,
Digital Technology
SYSPRO is a 35-year-old software vendor that focuses on selling enterprise resource planning (ERP) systems to midsize companies, particularly those in manufacturing and distribution. In manufacturing, SYSPRO supports make, configure and assemble, engineer to order, make to stock and job shop environments. The company attempts to differentiate itself through vertical specialization and its years of ongoing development, which can reduce the need for customization and cut the cost of initial and...
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Topics:
Big Data,
SaaS,
ERP,
Governance,
Human Capital Management,
Office of Finance,
close,
Continuous Accounting,
Analytics,
CIO,
Cloud Computing,
Collaboration,
CFO,
CRM,
CEO
The imperative to transform the finance department to function in a more strategic, forward-looking and action-oriented fashion has been a consistent theme of practitioners, consultants and business journalists for two decades. In all that time, however, most finance and accounting departments have not changed much. In our benchmark research on the Office of Finance, nine out of 10 participants said that it’s important or very important for finance departments to take a strategic role in...
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Topics:
Big Data,
Planning,
Predictive Analytics,
Social Media,
Governance,
GRC,
Human Capital,
Mobile Technology,
Office of Finance,
Budgeting,
close,
Continuous Accounting,
Continuous Planning,
end-to-end,
Tax,
Tax-Datawarehouse,
Analytics,
Business Analytics,
Business Collaboration,
Business Performance,
CIO,
Cloud Computing,
Financial Performance,
In-memory,
Uncategorized,
CFO,
CPQ,
Risk,
CEO,
Financial Performance Management,
FPM
Workday Financial Management (which belongs in the broader ERP software category) appears to be gaining traction in the market, having matured sufficiently to be attractive to a large audience of buyers. It was built from the ground up as a cloud application. While that gives it the advantage of a fresh approach to structuring its data and process models for the cloud, the product has had to catch up to its rivals in functionality. The company’s ERP offering has matured considerably over the...
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Topics:
Microsoft,
SAP,
ERP,
FP&A,
Human Capital,
NetSuite,
Office of Finance,
Reporting,
close,
Controller,
dashboard,
Tax,
Operational Performance,
Analytics,
Business Intelligence,
Business Performance,
Cloud Computing,
Collaboration,
Financial Performance,
IBM,
Oracle,
Uncategorized,
CFO,
Data,
Financial Performance Management,
FPM,
Intacct,
Spreadsheets
The enterprise resource planning (ERP) system is a pillar of nearly every company’s record-keeping and management of business processes. It is essential to the smooth functioning of the accounting and finance functions. In manufacturing and distribution, ERP also can help plan and manage inventory and logistics. Some companies use it to handle human resources functions such as tracking employees, payroll and related costs. Yet despite their ubiquity, ERP systems have evolved little since their...
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Topics:
Big Data,
Microsoft,
SAP,
Social Media,
Supply Chain Performance,
ERP,
FP&A,
Human Capital,
Mobile Technology,
NetSuite,
Office of Finance,
Reporting,
close,
closing,
Controller,
dashboard,
Reconciliation,
Operational Performance,
Analytics,
Business Collaboration,
Business Intelligence,
Business Performance,
Cloud Computing,
Collaboration,
Financial Performance,
IBM,
Oracle,
Uncategorized,
CFO,
Data,
finance,
Financial Performance Management,
FPM,
Intacct
Whatever Oracle’s cloud strategy had been the past, this year’s OpenWorld conference and trade show made it clear that the company is now all in. In his keynote address, co-CEO Mark Hurd presented predictions for the world of information technology in 2025, when the cloud will be central to companies’ IT environments. While his forecast that two (unnamed) companies will account for 80 percent of the cloud software market 10 years from now is highly improbable, it’s likely that there will be...
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Topics:
Microsoft,
Predictive Analytics,
Sales Performance,
SAP,
Supply Chain Performance,
ERP,
Human Capital,
Mobile Technology,
NetSuite,
Office of Finance,
Reporting,
close,
closing,
Controller,
dashboard,
Tax,
Customer Performance,
Operational Performance,
Analytics,
Business Collaboration,
Business Intelligence,
Cloud Computing,
Collaboration,
IBM,
Oracle,
Business Performance Management (BPM),
CFO,
Data,
finance,
Financial Performance Management (FPM),
Financial Performance Management,
FPM,
Intacct
Many senior finance executives say they want their department to play a more strategic role in the management and operations of their company. They want Finance to shift its focus from processing transactions to higher-value functions in order to make more substantial contributions to the success of the organization. I use the term “continuous accounting” to represent an approach to managing the accounting cycle that can facilitate the shift by improving the performance of the accounting...
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Topics:
ERP,
Office of Finance,
Reporting,
close,
closing,
Controller,
dashboard,
Tax,
Analytics,
Business Intelligence,
Business Performance,
Cloud Computing,
Collaboration,
Financial Performance,
CFO,
Data,
finance,
Financial Performance Management,
FPM
Last year Ventana Research released our Office of Finance benchmark research. One of the objectives of the project was to assess organizations’ progress in achieving “finance transformation.” This term denotes shifting the focus of CFOs and finance departments from transaction processing toward more strategic, higher-value functions. In the research nine out of 10 participants said that it’s important or very important for the department to take a more strategic role. This objective is both...
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Topics:
Big Data,
Planning,
Predictive Analytics,
Governance,
GRC,
Office of Finance,
Budgeting,
close,
end-to-end,
Tax,
Tax-Datawarehouse,
Analytics,
Business Performance,
CIO,
Financial Performance,
In-memory,
CFO,
CPQ,
Risk,
CEO,
Financial Performance Management,
FPM
Our recently published Office of Finance benchmark research assesses a broad set of functions and capabilities of finance organizations. We asked research participants to identify the most important issues for a finance department to address in a dozen functional areas: accounting, budgeting, cost accounting, customer profitability management, external financial reporting, financial analysis, financial governance and internal audit, management accounting, product profitability management,...
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Topics:
Mobile,
Planning,
Predictive Analytics,
ERP,
FP&A,
Office of Finance,
Reporting,
Self-service,
Budgeting,
close,
closing,
computing,
Controller,
dashboard,
Tax,
Analytics,
Business Intelligence,
Business Performance,
Cloud Computing,
Collaboration,
Financial Performance,
CFO,
Data,
finance,
Financial Performance Management,
FPM,
Microsoft Excel,
Spreadsheets
Our recent Office of Finance benchmark research demonstrates the importance of using automation to execute finance department functions. Information technology systems do at least two things very well that make better use of people’s time, and both of them can substantially improve organizational performance. First, they eliminate the need for people to do repetitive tasks, which frees them to spend time on more valuable work that requires judgment and skill. IT systems also can be programmed...
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Topics:
Big Data,
Mobile,
Planning,
ERP,
FP&A,
Office of Finance,
Reporting,
Self-service,
Budgeting,
close,
closing,
computing,
Controller,
dashboard,
Tax,
Analytics,
Business Analytics,
Business Collaboration,
Business Intelligence,
Business Performance,
Cloud Computing,
Collaboration,
Financial Performance,
CFO,
Data,
finance,
Financial Performance Management,
FPM,
Microsoft Excel,
Spreadsheets
Finance transformation” refers to a longstanding objective: shifting the focus of CFOs and finance departments from transaction processing to more strategic, higher-value functions. Our upcoming Office of Finance benchmark research confirms that most of organizations want their finance department to take a more strategic role in management of the company: nine in 10 participants said that it’s important or very important. (We are using “finance” in its broadest sense, including, for example,...
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Topics:
Big Data,
Mobile,
Performance Management,
Predictive Analytics,
Social Media,
ERP,
FP&A,
Office of Finance,
Reporting,
Management,
close,
closing,
computing,
Controller,
Tax,
Analytics,
Business Analytics,
Business Collaboration,
Business Performance,
Cloud Computing,
Collaboration,
Financial Performance,
CFO,
finance,
Tagetik,
FPM
When applying information technology to drive better business performance, companies and the systems integrators that assist them often underestimate the importance of organizing data management around processes. For example, companies that do not execute their quote-to-cash cycle as an end-to-end process often experience a related set of issues in their sales, marketing, operations, accounting and finance functions that stem from entering the same data into multiple systems. The inability to...
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Topics:
Big Data,
Mobile,
Sales Performance,
Supply Chain Performance,
ERP,
Office of Finance,
Operations,
Management,
close,
closing,
computing,
end-to-end,
Operational Performance,
Analytics,
Business Performance,
Cloud Computing,
Data Management,
Information Applications,
Information Management,
CRM,
Data,
finance,
FPM
Finance and accounting departments are staffed with numbers-oriented, naturally analytical people. Strong analytic skills are essential if a finance department is to deliver deep insights into performance and visibility into emerging opportunities and challenges. The conclusions of analyses enable fast, fully informed business decisions by executives and managers. Conversely, flawed analyses undermine the performance of a company. So it was good news that in our Office of Finance benchmark...
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Topics:
Big Data,
Mobile,
Planning,
Predictive Analytics,
ERP,
FP&A,
Office of Finance,
Reporting,
Self-service,
Budgeting,
close,
closing,
computing,
Controller,
dashboard,
Tax,
Analytics,
Business Analytics,
Business Intelligence,
Business Performance,
Cloud Computing,
Collaboration,
Financial Performance,
CFO,
Data,
finance,
Tagetik,
Financial Performance Management,
FPM,
Microsoft Excel,
Spreadsheets
“What’s next?” is the perennially insistent question in information technology. One common observation about the industry holds that cycles of innovation alternate between hardware and software. New types and forms of hardware enable innovations in software that utilize the power of that hardware. These innovations create new markets, alter consumer behavior and change how work is performed. This, in turn, sets the stage for new types and forms of hardware that complement these emerging product...
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Topics:
Mobile,
Performance Management,
Predictive Analytics,
Sales Performance,
Supply Chain Performance,
ERP,
Office of Finance,
Reporting,
Wearable Computing,
Management,
close,
closing,
computing,
Operational Performance,
Analytics,
Business Analytics,
Business Collaboration,
Business Performance,
Cloud Computing,
Financial Performance,
Workforce Performance,
finance,
FPM
Tagetik provides financial performance management software. One particularly useful aspect of its suite is the Collaborative Disclosure Management (CDM). CDM addresses an important need in finance departments, which routinely generate highly formatted documents that combine words and numbers. Often these documents are assembled by contributors outside of the finance department; human resources, facilities, legal and corporate groups are the most common. The data used in these reports almost...
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Topics:
Big Data,
Mobile,
ERP,
Human Capital Management,
Modeling,
Office of Finance,
Reporting,
Budgeting,
close,
closing,
Consolidation,
Controller,
Finance Financial Applications Financial Close,
IFRS,
XBRL,
Analytics,
Business Analytics,
Business Intelligence,
Business Performance,
Financial Performance,
Governance, Risk & Compliance (GRC),
CFO,
compliance,
Data,
benchmark,
Financial Performance Management,
financial reporting,
FPM,
GAAP,
Integrated Business Planning,
Profitability,
SEC Software
Our research consistently finds that data issues are a root cause of many problems encountered by modern corporations. One of the main causes of bad data is a lack of data stewardship – too often, nobody is responsible for taking care of data. Fixing inaccurate data is tedious, but creating IT environments that build quality into data is far from glamorous, so these sorts of projects are rarely demanded and funded. The magnitude of the problem grows with the company: Big companies have more...
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Topics:
Big Data,
Planning,
Predictive Analytics,
Governance,
Office of Finance,
Budgeting,
close,
Finance Analytics,
Tax,
Operational Performance,
Analytics,
Business Analytics,
Business Intelligence,
Business Performance,
CIO,
Financial Performance,
Governance, Risk & Compliance (GRC),
In-memory,
Information Applications,
CFO,
Risk,
CEO,
Financial Performance Management,
FPM
Business computing has undergone a quiet revolution over the past two decades. As a result of having added, one-by-one, applications that automate all sorts of business processes, organizations now collect data from a wider and deeper array of sources than ever before. Advances in the tools for analyzing and reporting the data from such systems have made it possible to assess financial performance, process quality, operational status, risk and even governance and compliance in every aspect of a...
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Topics:
Big Data,
Planning,
Predictive Analytics,
Governance,
Office of Finance,
Budgeting,
close,
Finance Analytics,
Tax,
Analytics,
Business Analytics,
Business Intelligence,
Business Performance,
CIO,
Financial Performance,
Governance, Risk & Compliance (GRC),
In-memory,
Information Management,
CFO,
Risk,
CEO,
Financial Performance Management,
FPM
Reconciling accounts at the end of a period is one of those mundane finance department tasks that are ripe for automation. Reconciliation is the process of comparing account data (at the balance or item level) that exists either in two accounting systems or in an accounting system and somewhere else (such as in a spreadsheet or on paper). The purpose of the reconciling process is to identify things that don’t match (as they must in double-entry bookkeeping systems) and then assess the nature...
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Topics:
Office of Finance,
automation,
close,
closing,
Consolidation,
Controller,
effectiveness,
Reconciliation,
XBRL,
Business Performance,
Financial Performance,
Governance, Risk & Compliance (GRC),
CFO,
Data,
Document Management,
Financial Performance Management,
FPM
A core objective of my research practice and agenda is to help the Office of Finance improve its performance by better utilizing information technology. As we kick off 2014, I see five initiatives that CFOs and controllers should adopt to improve their execution of core finance functions and free up time to concentrate on increasing their department’s strategic value. Finance organizations – especially those that need to improve performance – usually find it difficult to find the resources to...
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Topics:
Big Data,
Performance Management,
Planning,
Predictive Analytics,
Sales Performance,
Supply Chain Performance,
Office of Finance,
Budgeting,
close,
dashboard,
PRO,
Tax,
Analytics,
Business Analytics,
Business Collaboration,
Business Performance,
CIO,
Customer & Contact Center,
Financial Performance,
In-memory,
CFO,
Supply Chain,
CEO,
demand management,
Financial Performance Management,
FPM,
S&OP
Senior finance executives and finance organizations that want to improve their performance must recognize that technology is a key tool for doing high-quality work. To test this premise, imagine how smoothly your company would operate if all of its finance and administrative software and hardware were 25 years old. In almost all cases the company wouldn’t be able to compete at all or would be at a substantial disadvantage. Having the latest technology isn’t always necessary, but even though...
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Topics:
Big Data,
Planning,
Predictive Analytics,
Governance,
GRC,
Office of Finance,
Budgeting,
close,
Tax,
Analytics,
Business Analytics,
Business Collaboration,
Business Performance,
CIO,
Cloud Computing,
Financial Performance,
Governance, Risk & Compliance (GRC),
In-memory,
CFO,
Risk,
CEO,
Financial Performance Management,
FPM
Oracle continues to enrich the capabilities of its Hyperion suite of applications that support the finance function, but I wonder if that will be enough to sustain its market share and new generation of expectations. At the recent Oracle OpenWorld these new features were on display, and spokespeople described how the company will be transitioning its software to cloud deployment. Our 2013 Financial Performance Management Value (FPM) Index rates Oracle Hyperion a Warm vendor in my analysis,...
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Topics:
Big Data,
Mobile,
Planning,
Social Media,
ERP,
Human Capital Management,
Modeling,
Office of Finance,
Reporting,
Budgeting,
close,
closing,
Consolidation,
Controller,
driver-based,
Finance Financial Applications Financial Close,
Hyperion,
IFRS,
Tax,
XBRL,
Analytics,
Business Analytics,
Business Intelligence,
Business Performance,
CIO,
Cloud Computing,
Financial Performance,
In-memory,
Oracle,
CFO,
compliance,
Data,
benchmark,
Financial Performance Management,
financial reporting,
FPM,
GAAP,
Integrated Business Planning,
Price Optimization,
Profitability,
SEC Software
For four years Adaptive Planning has been building out its cloud-based financial software. Starting with budgeting, planning and forecasting, it added analytics, data visualization, dashboards and alerting as well as flexible reporting and collaboration tools. It recently announced the general availability of consolidation functionality in its cloud-based suite. This addition eliminates a notable gap in the company’s functionality, giving it a more complete financial performance management...
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Topics:
Office of Finance,
close,
Consolidation,
Controller,
Business Performance,
Cloud Computing,
Financial Performance,
CFO,
Data,
Financial Performance Management
One of the most important IT trends over the past decade has been the proliferation of ever wider and deeper sets of information sources that businesses use to collect, track and analyze data. While structured numerical data remains the most common category, organizations are also learning to exploit semistructured data (text, for example) as well as more complex data types such as voice and image files. They use these analytics increasingly in every aspect of their business – to assess...
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Topics:
Planning,
Predictive Analytics,
Customer,
Human Capital Management,
Office of Finance,
Budgeting,
close,
closing,
Finance Analytics,
PRO,
Operational Performance,
Analytics,
Business Analytics,
Business Collaboration,
Business Performance,
Cloud Computing,
Financial Performance,
CFO,
Risk,
costing,
FPM,
Profitability
I’m wondering whether the rapid rise in earnings restatements by “accelerated filers” (companies that file their financial statements with the U.S. Securities and Exchange Commission that have a public float greater than $75 million) over the past three years is a significant trend or an interesting blip. According to a research firm, Audit Analytics, that number has grown from 153 restatements in 2009 to 245 in 2012, a 60 percent increase. What makes it a blip is that the total is still less...
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Topics:
Customer Experience,
Governance,
GRC,
Office of Finance,
Reporting,
audit,
close,
Consolidation,
Controller,
Tax,
XBRL,
Business Performance,
Financial Performance,
Governance, Risk & Compliance (GRC),
CFO,
compliance,
FPM,
SEC
Businesses always see a lag between when technology makes some advance possible and when a majority of companies actually adopt it. There’s even a longer lag between the emergence of an advance in a business process or technique and the time it takes to become mainstream. When we write our research agendas at the top of each year, we have to strike a balance between focusing on the new and different, which is still many years away from general acceptance, and the mainstream, which has been...
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Topics:
Big Data,
Planning,
Predictive Analytics,
Sales Performance,
Governance,
GRC,
Office of Finance,
Budgeting,
close,
Operational Performance,
Analytics,
Business Analytics,
Business Collaboration,
Business Performance,
CIO,
Cloud Computing,
Financial Performance,
Governance, Risk & Compliance (GRC),
In-memory,
Workforce Performance,
CFO,
Risk,
CEO,
Financial Performance Management,
FPM
As I’ve noted before, it’s common for CFOs of companies that are transitioning from being a small to a midsize business (that is, when they grow past about 100 employees) to find that the entry-level accounting package that they have been using no longer fits their needs. This software may be inexpensive to purchase and easy to use but it lacks many of the customization and business process management capabilities that become increasingly important as organizations grow. The transition from...
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Topics:
Planning,
Salesforce.com,
ERP,
Human Capital Management,
Office of Finance,
Reporting,
close,
closing,
Operational Performance,
Business Performance,
Cloud Computing,
Financial Performance,
Workforce Performance,
Financial Performance Management,
FinancialForce.com
This is the third in a series of blog posts on what CEOs (and for that matter, all senior corporate executives) need to know about IT and its impact on running a business. The first covered the high-level issues. As I noted, it’s not necessary for a CEO to be able to write Java code or master the intricacies of an ERP or sales compensation application. However, CEOs must grasp the basics of IT just as they must understand basic corporate finance, the production process and – at least at a high...
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Topics:
Planning,
Predictive Analytics,
Sales,
Sales Performance,
Customer,
Human Capital Management,
Office of Finance,
Budgeting,
close,
closing,
PRO,
Operational Performance,
Analytics,
Business Analytics,
Business Performance,
Customer & Contact Center,
Financial Performance,
Information Management,
CFO,
CEO,
FPM,
Profitability,
SPM
Earlier this year we published our Trends in Developing the Fast, Clean Close benchmark research findings. The most significant was that, on average, it takes longer for companies to close their books today than it did five years ago. In 2007, nearly half (47%) we closing their quarters within five or six days, but now only 38 percent can do it as quickly.
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Topics:
Office of Finance,
close,
closing,
Consolidation,
Controller,
effectiveness,
XBRL,
Business Performance,
Financial Performance,
CFO,
Data,
Document Management,
Financial Performance Management,
FPM
If you’re considering purchasing a financial performance management (FPM) suite, you shouldn’t overlook a recent entrant in the category, Tagetik (which sort of rhymes with “magnetic”). The company, which was founded in 1986 and is based in Lucca, Italy, began by focusing mainly on Europe, but has extended its efforts in the United States in the past two years. Tagetik 4.0 is an elegant implementation of a financial performance management suite running on Microsoft’s SharePoint infrastructure.
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Topics:
Big Data,
Planning,
Office of Finance,
Reporting,
Budgeting,
close,
Consolidation,
Controller,
SharePoint,
XBRL,
Business Analytics,
Business Collaboration,
Business Performance,
Dashboards,
Financial Performance,
Workforce Performance,
CFO,
Tagetik,
FPM
People used to use the phrase “the last mile” solely to refer to a condemned prisoner’s path to execution. Then the telecommunications industry picked it up to describe that part of a circuit between a major trunk line and a subscriber. Later still a defunct software company, Movaris (now part of Trintech), used the phrase in an analogy to refer to the set of activities that take place between when a company closes its books and the point where it finishes its external reporting activities,...
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Topics:
Customer Experience,
Governance,
GRC,
Office of Finance,
Reporting,
audit,
close,
Consolidation,
Controller,
XBRL,
Business Performance,
Financial Performance,
Governance, Risk & Compliance (GRC),
CFO,
compliance,
FPM,
SEC
What’s a fast, free and reasonably reliable way of gauging the effectiveness of a finance department’s management? It’s the number of days it takes it to close the books. Companies that take six days or fewer after the end of the period to close their monthly, quarterly or semiannual accounts demonstrate a basic level of effectiveness that those that take longer do not. In my judgment, finance executives should regard a slow close as a negative key performance indicator pointing to...
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Topics:
Sales Performance,
Office of Finance,
close,
Consolidation,
Controller,
XBRL,
Business Analytics,
Business Intelligence,
Business Performance,
Financial Performance,
Governance, Risk & Compliance (GRC),
CFO,
Data,
Document Management,
Financial Performance Management
We started Ventana Research a decade ago, with the objective of providing the highest quality in business-focused information technology research available. We were particularly interested in offering fact-based market research that would focus on the practical needs of getting the most value from technology in business and IT functions. Since then many of the observations we make and much of the advice we offer are grounded in our benchmark research. In a field that often blurs the distinction...
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Topics:
Research,
close,
Uncategorized,
benchmark,
S&OP
I recently attended Vision 2012, IBM’s conference for users of its financial governance, risk management and performance optimization software. From my perspective, two points are particularly worth noting with respect to the finance portion of the program. First, IBM has assembled a financial performance management suite capable of supporting core finance processes as well as more innovative ones. It continues to build out the scope of this suite’s capabilities to enhance ease of use, deepen...
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Topics:
Performance Management,
close,
closing,
IFRS,
Analytics,
IBM,
Uncategorized,
GAAP
For at least a couple of decades completing the financial close within five or six business days after the end of the period has been accepted as a best practice. As such, that creates an expectation that finance organizations that take longer should work to reduce their closing intervals. In updating our last benchmark research on the closing process, Ventana Research has found this not to be the case. In fact, the latest research shows that many companies are taking longer to close today than...
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Topics:
Office of Finance,
close,
Consolidation,
Controller,
XBRL,
Business Analytics,
Financial Performance,
Governance, Risk & Compliance (GRC),
Information Management,
CFO,
Data,
Document Management,
Financial Performance Management
Ventana Research recently completed an update to our last benchmark research on the financial closing process. It shows that many companies are taking longer to close today than they did five years ago. Whereas nearly half (47%) were able to close their quarter or half-year period within six business days five years ago, just 38 percent are able to do so in our latest benchmark. Similarly, five years ago 70 percent of companies were able to complete their monthly close in six days; today only...
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Topics:
Office of Finance,
close,
Consolidation,
Controller,
XBRL,
Business Analytics,
Business Mobility,
Business Performance,
Cloud Computing,
Financial Performance,
CFO,
Data,
Document Management,
Financial Performance Management
Ventana Research’s new financial close benchmark research reveals that many companies are taking longer to close today than they did five years ago. Whereas nearly half (47%) were able to close their quarter or half-year period within six business days five years ago, just 38 percent are able to do so in our latest benchmark. Similarly, five years ago 70 percent of companies were able to complete their monthly close in six days; today only half can. The research confirms that most companies...
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Topics:
Office of Finance,
close,
Consolidation,
Controller,
XBRL,
Operational Performance,
Business Analytics,
Business Performance,
Financial Performance,
Workforce Performance,
CFO
The most intractable issues that face finance departments are those that “everyone” knows must be addressed but somehow never muster the collective urgency to do so. Many couch potatoes know they need to watch their diet and exercise regularly. If asked, they would say it’s important or even very important. Yet there they sit. Based on our newly completed benchmark research “Trends in Developing the Fast, Clean Close”, it appears that closing falls into this category. This is especially true...
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Topics:
Office of Finance,
close,
Consolidation,
Controller,
XBRL,
Operational Performance,
Business Analytics,
Business Performance,
Financial Performance,
Workforce Performance,
CFO