Download The Modern Approach to Closing the Books

The Modern Approach
to Closing the Books
An Introduction to Continuous Accounting
Trust is in the Balance™
Table of Contents
The Future of Finance is Bright..................................................................................................................................................................................... 3
The Trouble with Record-to-Report............................................................................................................................................................................. 6
Costs of Reactive Operations......................................................................................................................................................................................... 9
The Evolution of Record-to-Report: Continuous Accounting���������������������������������������������������������������������������������������������������������������������������� 12
Transformational Benefits of Continuous Accounting...........................................................................................................................................16
5 Steps to Continuous Accounting.............................................................................................................................................................................20
Baby Steps: Practical Examples to Get You Started............................................................................................................................................. 22
The Modern Finance Journey.......................................................................................................................................................................................29
Companies on the Modern Finance Journey........................................................................................................................................................... 33
Achieving the Point-in-Time Close.............................................................................................................................................................................38
Modernity is Not an Option: Adapt Or…....................................................................................................................................................................41
The Modern Approach to Closing the Books
2
The Future
of Finance
is Bright
There’s cause for a lot of optimism in
finance. By 2020, Accenture predicts
productivity of Finance will increase by
two to three times while organizational
costs will decline by 40%1. They also
predict a dramatic shift in time spent on
analysis, from a mere 25% today to 75%
in the future.
The Modern Approach to Closing the Books
3
The Future
of Finance
is Bright
These transformative predictions, are due in large
part to the digitization of accounting, and the
digitization of business in general. Technologies like
cloud computing, mobile, automation and analytics
are delivering dramatic improvements in efficiency,
and finance organizations are tapping into it, with
82% of CFOs pointing to cloud applications as the
future of their business applications2.
Finance is shifting from traditional rigid
Nearly 70% of respondents in a recent survey
and manual accounting processes to more
by The Hackett Group found that manual
automated, more flexible, and more agile
processes are still the #1 bottleneck, with
cloud based systems. This shift is essential,
much of the resource utilized at the end of
because it provides the productivity benefits
the accounting period. Clearly, smart use of,
so that finance can focus more on reporting
and reallocating those resources through
and analyzing financial performance.
automation is a significant opportunity to
However, successfully making the shift means
make the shift.
overcoming roadblocks across four key areas
– automation, talent, risk, and technology.
The Modern Approach to Closing the Books
4
The Future
of Finance
is Bright
Making the shift to being more strategic,
millennial workforce, but current systems are
also means attracting and retaining the
often a barrier to making the shift. It requires
best talent. While 97% of CEOs see this as a
cloud and mobile systems that complement
priority, only 1/3 give CFOs a passing grade3.
existing infrastructure.
Unsurprisingly, manual and repetitive tasks
drain satisfaction and motivation – and are a
predictor to churn. To compete for and retain
talent, automation is key.
The complex nature of 24/7 global business
requires a change or, more accurately, a
revolution. The legacy processes saddling
finance operations are endemic, but
Finally, organizations see challenges moving
especially burdensome for core accounting
from the systems they have to the future.
and financial close. In order to make the the
CFOs see cloud as the future of their
shift from overworked cost center to strategic
applications and mobile applications are
partner for their business, accounting and
increasingly important with an incoming
finance teams must embrace the future.
How do organizations move away from legacy systems and processes
while reducing cost and improving productivity?
The Modern Approach to Closing the Books
5
The Trouble
with Recordto-Report
The traditional record-to-report process
was designed to map out tasks and
responsibilities required to be performed
after the period-end, whether directly
involved in the financial close process
or part of after-close reconciliations and
analysis. Close activities and processes
that were created and implemented twenty
or more years ago were not built for the
modern business economy.
The Modern Approach to Closing the Books
6
The Trouble with
Record-to-Report
BANK
Prepare
Analyze
Report
ERPs
CREDIT CARD
Account
Reconciliations
Journal
Entry
Month-End
Close
Analysis
Compliance
& Control
Reporting
POS
SUBLEDGERS
DAY 1
DAY 7
DAY 14
DAY 21
DATA
The Modern Approach to Closing the Books
7
The Trouble
with Recordto-Report
It’s not that the process is broken; it’s
that it has failed to modernize.
Record-to-report processes were built to
Technically, this is a completely functional
accommodate rigid systems that didn’t
process. But it is no longer optimal. Some
integrate well with general ledgers nor
ascribe to the philosophy of if it ain’t broke,
provide accurate visibility into the chart-
don’t fix it. It’s not that the process is broken;
of-accounts. As a process, it represents a
it’s that it has failed to modernize. It is
start-stop view of how accountants approach
not equipped to keep up with the always-
reconciliation and close activities at the
on, continuous nature of business today.
period end, manifesting problems that can
Globally dispersed transactions – from final
have a significant impact on the business.
product sales to intercompany invoices –
Record-to-report is a linear process,
analogous to an assembly line. By definition,
results can only be produced and the end
of a given period, be it a month, quarter, or
year. Fundamentally, on the day after the
come in around the clock, vastly increasing
the number of unreconciled transactions.
Record-to-report brings significant costs to
organizations looking to modernize, even
more to those who are reluctant to do so.
period closes, steps are taken to first prepare,
subsequently analyze, and ultimately report
results. By the time those results are in, the
information is necessarily out of date.
The Modern Approach to Closing the Books
8
Costs of
Reactive
Operations
As the record-to-report model represents
items to be completed upon the end of
the period, it condenses a huge amount
of work into a short span of time. This is a
reactive approach to getting the job done,
one that leaves accounting and finance
always playing catch-up.
The Modern Approach to Closing the Books
9
Costs of
Reactive
Operations
Reactive accounting operations in the form of the
traditional record-to-report process risk damaging
the quality, accuracy, and timeliness of results
while placing incredible amounts of strain on
employees. By leaving so much work to get done
in just a week or so, accounting and finance teams
face costly challenges.
When Business Happens
Close Activities
Period-End Close
Reporting & Analysis
0
CALENDAR DAYS
5
10
15
20
25
30
35
40
45
The Modern Approach to Closing the Books
10
Costs of
Reactive
Operations
No Time for Analysis
By completing close activities at the end of a period, there is no
extra time for in-depth analysis.
Out of Date Results
When the results are in and reporting is completed, the results are from
days ago if not older.
Increased Risk of Error
As the pressure mounts to complete the close, rushed approvals
and late journal entries lead to missed errors.
Discrepancies Discovered After Reporting
If a material error gets through or an account balance fluctuation needs
investigation, it only happens after reporting.
Employee Burnout
Long hours and overtime are fast lanes to employee burnout, and
ultimately expensive employee turnover.
The Modern Approach to Closing the Books
11
The Evolution
of R2R:
Continuous
Accounting
Continuous Accounting embeds automation,
control, and period-end tasks within day-today activities, allowing the rigid accounting
calendar to more closely mirror the dynamic
nature of the broader business.
The Modern Approach to Closing the Books
12
The Evolution
of R2R:
Continuous
Accounting
The truth is automating the R2R process
Continuous Accounting transforms tasks
only gets accounting so far — faster close
like reconciliations, intercompany processes,
times, and reduced accounting effort.
transaction matching and variance analysis,
Continuous Accounting provides a way
so they aren’t just automated: they’re real
forward — shifting traditional end of period
time. It delivers more than a faster close and
tasks to continuous day-to-day activities
efficiency benefits alone, because it spreads
throughout the accounting period, unlocking
the accounting workload over the accounting
more productivity, more agility, and more
period, reducing overtime and weekend
visibility. Continuous Accounting is the natural
crunches that often overload and burn out
evolution of record-to-report. The reality is
accounting talent. It turns visibility into
that Automating the R2R process is valuable.
financial results that is traditionally reserved
Because the benefits are confined to the
for the close process, into a real-time picture
close period itself, it can only buy
at any point in the accounting period.
accounting so much.
The Modern Approach to Closing the Books
13
The Evolution
of R2R:
Continuous
Accounting
The accounting team can perform tasks in
technology to shorten their record-to-report
smaller chunks on a more frequent basis,
close cycles with automation, improvements
smoothing out workloads. They can also
are limited by the very structure of the old
evaluate the integrity of information at
way of doing things. Continuous Accounting
any given point in time, enabling continual
is more than a change in technology;
monitoring for errors, fraud, and inefficiencies.
it is a fundamental shift in philosophy.
Furthermore, they can look at the impact of
The technology takes care of processing
changes like currency fluctuations with up-
transactions as they come in, but the
to-date financial data. In short, Continuous
people, now refocusing on continual
Accounting more evenly distributes the
analysis of discrepancies and anomalies,
workload associated with the period-end close,
are unleashed with this philosophical shift.
while enabling constant reporting, verification,
Moving from record-to-report to Continuous
and analysis.
Accounting is a significant shift, but one with
This is done by combining a mix of people,
process, and technology. While many
a practical, stepwise application yielding
quantifiable benefits.
companies have found ways to leverage
The Modern Approach to Closing the Books
14
The Evolution of R2R:
Continuous Accounting
BANK
CREDIT CARD
POS
INTEGRATION LAYER
ERPs
PROCESS
REPORTING
CONTROL
ANALYZE
SUBLEDGERS
DATA
The Modern Approach to Closing the Books
15
Transformational
Benefits of
Continuous
Accounting
By applying this methodology and
philosophy, accounting and finance
teams reduce business-process costs
and optimize process effectiveness and
efficiency. Successful application of this
modern process improves the ability to
continually capture, validate, and provide
timely and accurate financial data
necessary for reporting.
The Modern Approach to Closing the Books
16
Transformational Benefits
of Continuous Accounting
When Business Happens
Close Activities
Reporting & Analysis
0
CALENDAR DAYS
5
10
15
20
25
30
35
40
The Modern Approach to Closing the Books
45
17
Transformational
Benefits of
Continuous
Accounting
More Balanced Workloads
Rather than execute the majority of period-end accounting efforts in
only a few days work can be performed as required in smaller batches.
Time Freed for Analysis
Spreading tasks out through a period does more than balance
workloads, it frees time for in-depth, daily analysis of the latest data.
Current – Not Out of Date - Results
Data analysis is performed continuously, hourly, daily, weekly,
monthly, etc. depending on the needs of the business.
Finance Better Aligned w/ Business Operations
With real-time data analysis, Finance becomes more intelligent,
always armed with information to guide business strategy.
The Modern Approach to Closing the Books
18
Transformational
Benefits of
Continuous
Accounting
Improved Business Agility
Strategic guidance from Finance enables executive leadership to
continually make better decisions with current information.
Refocus on Value Adding Services
By moving accounting teams away from a reactive, transactional approach,
they can focus on analysis and adding new value to the organization.
Employee Engagement
Balanced workloads and meaningful work ends the era of turnover
due to burnout, and unleashes exceptional accountants.
Continuous Improvement
Combining all other benefits, this modern approach to accounting enables
Finance leaders to constantly hone and optimize internal process.
The Modern Approach to Closing the Books
19
5 Steps to
Continuous
Accounting
Continuous Accounting is not an abstract
concept, but a practical approach to
improving core accounting and financial
close operations. Apply these five steps
to accounting activities currently left for
the period end. Step by step, anyone can
modernize back office accounting.
The Modern Approach to Closing the Books
20
5 Steps to
Continuous
Accounting
1. Split Batch Processes into Smaller Tasks
Identify batch activities, break them down into logical work units,
and make them more manageable.
2. Schedule Tasks as Early as Possible
Schedule those smaller tasks as early in the process as possible or as
business needs might require.
3. Embed Tasks within an Everyday Workflow
Live the philosophy of Continuous Accounting by embedding tasks
into daily workflows, simply making them a part of one’s day.
4. Automate where Possible; Standardize Elsewhere
Automate tasks where technology can take over, and standardize
routine process where an accountant’s nuanced approach is ideal.
5. Monitor Metrics to Adapt & Intervene in Real Time
Monitor data, results, and benchmarks to address process gaps,
anomalies, and discrepancies as they happen, in real time.
The Modern Approach to Closing the Books
21
Baby Steps:
Practical
Examples
to Get You
Started
The 5 Steps of Continuous Accounting can
apply broadly to finance transformation
projects looking for immediate results.
However, at first glance, it can be hard to
envision where exactly those steps can
be applied. While there are many, here are
a few prime examples that can make a
difference in any organization, immediately.
The Modern Approach to Closing the Books
22
Baby Steps:
Practical
Examples
to Get You
Started
Variance Analysis
Current State
If any real variance analysis – the investigation of balance fluctuations – is done, it is quick, high-level,
and usually last minute. With little more than a cursory glance, there is huge risk of reporting errors.
If anomalous variance issues are discovered, investigation and corrections are rushed at the end of
the period.
5 Steps to Continuous Variance Analysis
1.
SPLIT batch process into smaller tasks: Instead of analyzing Total Current Assets
as a whole, break it up to analyze Cash, AR, and Pre-paid individually.
2. SCHEDULE tasks as early as possible: Move from analyzing account balance
variance once a month to once a week.
3. EMBED tasks within a normal everyday workflow: Work with your team to make
this a part of their ongoing, day-to-day thought process.
4. AUTOMATE where possible: Leverage technology to automate variance analysis
and alerts if unexpected flux arises.
5. MONITOR metrics to adapt and intervene: Use trend analysis reports to find patterns
and adjust task scheduling to avoid unnecessary investigation based on event timing.
Future State
Investigating anomalies in balance fluctuations throughout the month minimizes the compounded
research historically left for the end of the month. With more time to react and interrogate data,
errors will be caught and handled, increasing confidence in financial statements.
The Modern Approach to Closing the Books
23
Baby Steps:
Practical
Examples
to Get You
Started
Account Reconciliations
Current State
Most reconciling of accounting balances happens at the end of a period. In many cases, that’s
fine. However, key accounts or those subject to high volumes of transactions might require more
regular analysis. The old way of doing thing is reactive. It doesn’t allow for those accounts to get the
attention they need; it doesn’t allow teams to conduct proactive research and analysis.
5 Steps to Continuous Account Reconciliations
1.
SPLIT batch process into smaller tasks: Instead of waiting until the end of the
period, reconcile key accounts daily or weekly.
2. SCHEDULE tasks as early as possible: Shift from scheduling certain reconciliations
from getting done at month-end, to event-based execution, i.e. when it can or
needs to be reconciled.
3. EMBED tasks within a normal everyday workflow: Socialize process improvement
plan and its advantages for the business (and accounting team!).
4. AUTOMATE where possible: Technology can match high volumes of transaction
data and flag unmatched exceptions for immediate follow up.
5. MONITOR metrics to adapt and intervene: Analyze data and reports to find consistent
issues, benchmark productivity outcomes, and continually hone internal process.
Future State
After applying the five steps, accounts identified as of particular importance can be investigated
throughout the month, even every day if needed. This means there is more time to react to items
needing further investigation or adjustment. In fact, a little later you’ll read about a company that
does this daily in order to make correcting entries in near real time.
The Modern Approach to Closing the Books
24
Baby Steps:
Practical
Examples
to Get You
Started
Intercompany Accounting
Current State
Intercompany accounting is complex. Foreign exchange rates, time variance between entity bookings,
and local laws are just a few of the many challenges confronting intercompany accountants. Legacy
processes necessitate waiting until books are closed to even wrap one’s head around the task at
hand. As a result, there is zero time to react to or research discrepancies, and rushed reviews and
marginal controls result in inaccurate reporting.
5 Steps to Continuous Intercompany Accounting
1.
SPLIT batch process into smaller tasks: Book and approve transactions on each entity’s
books in real time.
2. SCHEDULE tasks as early as possible: Finalizing all parts of intercompany transaction as
they happen realigns the process from month-end review and approval, to daily completion.
3. EMBED tasks within a normal everyday workflow: Establish clear rules and workflows so
transactions can be automatically approved, or swiftly approved manually at a minimum.
4. AUTOMATE where possible: Use intercompany accounting automation and controls
solutions to facilitate automatic processing, approval, and booking where possible.
5. MONITOR metrics to adapt and intervene: View recent fluctuation trends of foreign
exchange rates to augment intercompany processes as needed.
Future State
Given its unique intricacies, intercompany accounting and transaction management needs
technology’s help. Unfortunately, there are only a few fully capable systems available today. But, they
do exist. And, when coupling technology with these five steps, organizations can clear intercompany
transactions in real time, embed control throughout their global process, and free up time to focus on
value-adding activities.
The Modern Approach to Closing the Books
25
Baby Steps:
Practical
Examples
to Get You
Started
Task Management
Current State
When considering how to improve process and its associated task hierarchy, it helps to remind how
workload imbalances associated with traditional approaches to the financial close still plague many
companies. Close tasks are largely left for the end of the period. This leads to long hours, hasty
execution, and a generally disengaged workforce. Moreover, there is no time for quality analysis of
results and irregularities. This can lead to catching errors too late and a lack of confidence in balance
sheet reporting.
Monthly
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
The Modern Approach to Closing the Books
26
Baby Steps:
Practical
Examples
to Get You
Started
Task Management
5 Steps to Continuous Task Management
Task Management is a key component of effectively applying the 5 Steps of Continuous Accounting.
And, as a component, it can be hard to precisely break it down into the five steps. Nevertheless,
they still work! Steps 1-3 – Split, Schedule, and Embed – are primarily focused on internal process
improvement, not technical automation. Steps 4 and 5 – Automate and Monitor – are where
technology is best suited to help manage task assignment and execution.
1.
SPLIT batch process into smaller tasks: Analyze opportunities to divide larger tasks,
and make smaller tasks more achievable on a regular basis, e.g. daily reconciliations.
2. SCHEDULE tasks as early as possible: Identify events that complete prior to the period
end, and ensure they got done earlier in the period.
3. EMBED tasks within a normal everyday workflow: Realign close tasks and move them
from being period-end focused to becoming a part of day-to-day task lists.
4. AUTOMATE where possible: Use a task management solution (no, not Excel) to assign
and manage tasks. Parent task auto-certification when subordinate tasks are certified
is especially helpful here.
5. MONITOR metrics to adapt and intervene: Use reports and benchmarking to adjust
imbalanced workloads for individuals, and identify opportunities to reassign critical
tasks to top performers.
The Modern Approach to Closing the Books
27
Baby Steps:
Practical
Examples
to Get You
Started
Task Management
Future State
Analyzing your current task management process is a great first step toward Continuous Accounting.
Optimizing your task management process by splitting batch processes into smaller parts, scheduling
tasks as early as possible, and then embedding them into daily workflow, will help any organization
improve the efficiency, productivity, and engagement of its employees, and thus the quality of output.
Event Driven
Sunday
Monday
Tuesday
Monthly
Wednesday
Weekly
Thursday
Friday
Daily
Saturday
The Modern Approach to Closing the Books
28
The Modern
Finance
Journey
The concept of Modern Finance can
seem all encompassing, from Finance
Transformation to technology investments in
Enhanced Finance Controls and Automation,
ERP, and CPM platforms. Succinctly, Modern
Finance combines process improvement
with technology to improve control,
accuracy, and efficiency for the office of
Finance. Modern Finance moves the CFO and
team from being a cost center to a valueadding, strategic leader of the business.
The Modern Approach to Closing the Books
29
Continuous Accounting is a pillar of Modern
Finance. And together, they should be thought of
as journeys, not destinations. These ideas are not
finish lines. Top performing finance organizations
are always adapting, innovating, and improving. This
shouldn’t be discouraging. It’s inspiring. Every day
can be better than the last.
Strategic Value
The Modern
Finance
Journey
R2R
Old Way
R2R
w/ Technology
Continuous
Accounting
The Modern Approach to Closing the Books
30
The Modern
Finance
Journey
Analyze Current State
• Recognize the challenges of current close procedures
• Consider visibility and efficiency gaps
• Identify risk exposure
Design Future State
• Imagine the ideal state – Play the What-If Game
• Start with easy wins
• Identify critical areas for regular review and
proactive investigation
Optimize & Automate Process
• Split batch processes into smallest components
• Schedule components more often
• Embed in daily activities
• Automate where possible
The Modern Approach to Closing the Books
31
The Modern
Finance
Journey
Monitor Metrics & Results
• Leverage continuous activity to continuously review output
• Investigate alerts from flux analysis, exceptions, & anomalies
• Make adjustments as needed in real time
Review Outcomes & Controls
• Discover macro trends
• Identify process and controls gaps
• Compare successes vs. original objectives – trouble areas?
Improve Continuously
• Use Review stage discoveries to design a new Future
StateSchedule components more often
• Move to a more challenging tier of improvements
• Focus on most risky or critical gaps
“A journey of a thousand miles begins
with a single step.”
– Lao Tzu
The Modern Approach to Closing the Books
32
Companies
on the
Modern
Finance
Journey
Many companies have taken crucial first
steps toward transforming their finance
function by embedding automation into
their processes. And, as we’ve explored,
Continuous Accounting means more than
simple automation; it means process
optimization. The following two examples
are companies applying this modern
approach to their close operations and
realizing quantifiable and immediate benefits.
The Modern Approach to Closing the Books
33
The Old Way
Nasdaq began as a U.S.-based equities exchange. Today, Nasdaq is recognized
around the globe as a diversified worldwide financial technology, trading, and
information services provider to the capital markets. From 50 offices in 26 countries
across six continents, more than 3,500 Nasdaq employees serve businesses and investors
in every capital market. Recently, a focus on expansion and growth added tremendous
complexity to their accounting and close operations. A lack of standardization across
their global organization created inconsistent close processes. Historically, Nasdaq’s
record-to-report process was manual and, not surprisingly, quite cumbersome.
The Modern Approach to Closing the Books
34
Their Modern Approach
Today, Nasdaq closes their books monthly, no longer on a quarterly basis. They now
close three times more often a year. Here’s a company just embarking on the journey
of Continuous Accounting and Modern Finance. Companies can’t evolve every process
over night. You focus on the key areas first – Analyze, Design, and Automate – then
take those results to further optimize process – Monitor, Review, and Improve. Now
Nasdaq completes 5,000 balance sheet reconciliations every month, resulting in more
accurate and timely reporting. The best part? They’ve refocused staff on analysis and
discrepancy investigation.
The Modern Approach to Closing the Books
35
The Old Way
Caesars Entertainment audits the revenue of their food and beverage outlets across
35 properties. This is done every day. However, this meant more than 1,000 unique
spreadsheets were being updated every day of the month. That required manually
ticking-and-tying transactions from various systems on a daily basis. If that wasn’t
hard enough, they repeated this process at month-end, tallying daily totals from
each spreadsheet back to POS reports. They reviewed transaction and balances
daily, but manually.
The Modern Approach to Closing the Books
36
Their Modern Approach
Caesars was already on the path to Continuous Accounting. The workload associated
with manually investigating 30,000+ spreadsheet cells at month-end had them optimize
their process by executing the reconciliation of these totals daily. Recalling the 5 Steps, they
split the month-end task formerly reserved for month end and scheduled a piece of it to be
done every day. This was embedded in the team’s daily workflow. Committed to continuous
improvement, Caesars next automated that process. They use technology to automate
transaction matching, associated account reconciliations, and adjusting journal entries on
a daily basis. One would be hard-pressed to find a more perfect example of applying the
5 Steps of Continuous Accounting to a problem facing core accounting operations.
The Modern Approach to Closing the Books
37
Achieving
the Point-inTime Close
By embedding automation, control, and
period-end tasks within day-to-day
activities, and realigning the antiquated
period-end accounting calendar,
accounting and finance teams can become
strategic partners to the broader business.
Arming company leadership with up-todate financial intelligence and analysis is
an undeniable competitive advantage. It
boils down to one simple idea: The Pointin-Time Close.
The Modern Approach to Closing the Books
38
Achieving the
Point-in-Time Close
Real-Time Preparation
Variance
Analysis
Daily
Reconciliations
Reconciliation
Management
BANK
Point-in-Time
Close & Analysis
Variance
Analysis
Debt Covenant
Analysis
P&L
Analysis
KPIs
MD&A
Disclosures
Intercompany
Settlement
Hard Close
Report
CREDIT CARD
POS
INTEGRATION LAYER
ERPs
AUTOMATION
ENGINE
BUSINESS
RULES
PROCESS
SUBLEDGERS
DATA
Journal
Entry
Netting &
Settlement
Transaction
Matching
The Modern Approach to Closing the Books
39
Achieving
the Point-inTime Close
The point-in-time close is the pinnacle of
they arise. When this happens, everyone
Continuous Accounting. As companies
knows how the company is doing it at every
continually improve process and automate
given point in time. Instead of just reporting
wherever possible, transactions will be
on the past, Finance guides the future.
processed constantly, regardless of time
zone or source system. Those transactions
will be automatically matched, reconciled,
and analyzed as they happen. Irregularities
are flagged, generating instant alerts so
accounting teams can investigate issues as
Constantly processing
Matching, reconciling,
Know where you are at any
transactions, regardless of
analyzing, alerting, and
point on the calendar –
time zone or source system
automating at every step
“Call it and close it.”
The Modern Approach to Closing the Books
40
Modernity
is Not an
Option:
Adapt or…
Continuous Accounting is an exciting and
A world where the CFO can walk into any
novel approach delivering incredible benefits
meeting and provide real-time – not only
for accounting and finance. Instead of
up-to-date, but up-to-the-minute – financial
reactive operations, organizations and
intelligence is achievable. Modernizing legacy
teams work proactively. Instead of gross
record-to-report processes is not an option.
workload imbalances, work is distributed
Any company that avoids transforming
throughout the period, freeing time for in-
its finance function is putting itself at risk.
depth analysis and value-adding projects.
Beyond the risks associated with out-of-
With unique visibility into the current state
date accounting and finance practices,
of a company’s finances, company leadership,
the increasingly complex nature of global
and thus the entire business, realizes
business cycles means that companies that
unprecedented agility.
are slow to modernize their accounting
operations are at a competitive disadvantage.
The Modern Approach to Closing the Books
41
Modernity
is Not an
Option:
Adapt or…
Modern Finance, Continuous Accounting,
and the Point-in-Time Close are the
new paradigm.
This is the future of Finance.
Those that don’t evolve will be left behind.
The Modern Approach to Closing the Books
42
About this eBook
For more on Continuous Accounting and how you can optimize core accounting
operations immediately, go to blackline.com/continuous-accounting
A Modern Approach to Closing the Books
An Introduction to Continuous Accounting
Written By
About BlackLine
Zach Deming
BlackLine provides software that automates and manages complex, manual,
Director, Product Marketing, BlackLine
and repetitive accounting processes for more than 1,400 customers. We help
Edited By
companies around the world modernize the way accounting and finance work.
Paul Turner
Skyview Consulting
By improving the efficiency, accuracy, and control of accounting operations,
we help enhance the office of Finance’s strategic impact and better serve the
broader organization.
Designed By
Katy Abramson
Graphic Designer, BlackLine
LEARN MORE ABOUT BLACKLINE & SCHEDULE A DEMO TODAY
Special Thanks To
BLACKLINE.COM/DEMO
The BlackLine community of employees, the Creative Design and Content
teams, and especially our customers for driving our continuous innovation.
Sources
1
David Axson, “Death by Digital: Goodbye to Finance as You Know It,” Accenture, October 27, 2015
2
Survey Analysis: Critical CFO Technology Needs: 2015 Gartner FEI Study
3
CEO Survey, “The View from the Top”, KPMG
Trust is in the Balance™