Trintech current strategies for optimizing bal sheet certification 8 29-2011

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Transforming the LAST MILE of

FINANCE

Current Strategies for Op6mizing Balance Sheet Cer6fica6on


Balance Sheet Cer6fica6on – A Significant Opportunity to Improve Business Performance è “Automa6ng reconcilia6on of high volume transac6on

accounts typically delivers 6me and cost savings of 30% to 70% with an ROI of 6-‐9 months.”

è “Automa6ng reconcilia6on of GL control accounts typically delivers 6me and cost savings of 15% to 20% with an ROI of 12+ months.” -‐ Source: Atos Consul0ng, Op0mizing Your Reconcilia0on Process, 2011.

è How can organiza6ons op6mize the process to achieve these results while increasing efficiency, reducing risk and improving transparency?


7 Strategies for Op6miza6on This guide provides 7 of the latest best prac=ce strategies for op=mizing the Balance Sheet Cer=fica=on processes. These strategies are based on the exper=se Trintech has acquired helping over 600 leading global organiza=ons and more than 100,000 users achieve a sustainable Return on Investment (“ROI”).


1. Organize a Steering CommiWee Organize a Steering CommiNee involving stakeholders from internal audit, IT, en=ty owners, and other key cons=tuents. CommiNee responsibili=es include (but are not limited to) the following: •  Gain buy-‐in and drive project

ownership •  Drive awareness and educa=on across the company on the

business benefits, goals and objec=ves •  Set policies and procedures •  Define internal controls tes=ng •  Understand data, hardware and resource requirements


2. Review the Current vs. Desired Process Technology can play a key role in automa=ng Balance Sheet Cer=fica=on processes, but automa=ng a bad/broken process may not result in desired efficiency gains. Before automa=on, Trintech recommends: •  Documen=ng the current process •  Performing a gap analysis between

the Current vs. Desired processes •  Iden=fying ways to improve the

process •  Standardizing wherever possible •  Leveraging technology solu=ons to

automate the (improved) process

Gap

Current Process

Desired Process


3. Op6mize the Process BEFORE Automa6on Op=mize the process prior to (or in conjunc=on with) automa=on projects: •  Ensure all accounts are assigned to

specific individuals •  Document how a compliant reconcilia=on

should be performed •  Define acceptable clearing standards for

open items •  Establish a method to trace and escalate

excep=on items •  Automate wherever possible:

–  Auto-‐reconcilia=on, auto-‐cleared items, journal entries

•  Take a top-‐down, risk based approach


4. Take a Top-‐Down, Risk-‐Based Approach •  Evaluate all accounts based on

materiality and/or risk. •  Perform a risk assessment and rank

accounts based on risk ra=ng: –  Set up a schedule to review the current

ra=ng and adjust as needed. –  Allow the applica=on to review current risk

ranking and adjust automa=cally based on your business rules.

•  Adjust the frequency of reconcilia=ons based on materiality: –  Low risk accounts quarterly –  High risk accounts monthly

•  Op=mize the number of accounts reconciled based on balance sheet coverage.


5. Follow a Structured Project Methodology •  Follow a structured process (e.g. ADDED) •  Incorporate project management across

all phases: –  Set realis=c project deadlines, milestones, and measures of success

–  Manage accountability –  Measure project success based on KPIs for: •  Efficiency •  Transparency •  Risk mi=ga=on

–  Sustainability –  Plan for scalability based on:

•  Organiza=on size & growth rate •  Acquisi=ons •  Shared service centers

ANALYZE

DEFINE

DEVELOP

EVALUATE

DEPLOY

PROJECT

MAN

AGEM

ENT


6. Take a Phased Approach Take a phased approach to implementa=on (e.g. walk, run, sprint) by: •  Building a realis=c rollout plan that

creates quick wins and success stories. –  Run a pilot with one department or LOB to use as a success model for broader rollout

–  Implement key learnings into future phases and rollouts

•  Focus on users, departments, and LOBs with a higher ap=tude for adop=on.

•  Automate high volume transac=ons first to free up resources, then focus on those with highest materiality/risk.

Walk

Run

Sprint


7. Leverage Technology for Automa6on •  Manual balance sheet cer=fica=on

processes are prone to errors, fraud, and tend to break down over =me.

•  By leveraging proven technology, finance organiza=ons can achieve true automa=on while crea=ng a sustainable process that embeds process improvements into everyday business ac=vi=es.

•  Trintech’s Unity Recon module provides a comprehensive and proven solu6on for automa6ng and op6mizing Balance Sheet Cer6fica6on for both GL and high volume transac6on accounts.


Trintech’s Unity Recon A Proven Solu0on for Op0mizing Balance Sheet Cer0fica0on

•  Comprehensive solu=on for reconcilia=on of both opera=onal, high-‐volume transac=ons and GL accounts

•  Only solu=on offering an integrated plagorm encompassing reconcilia=on, financial close, regulatory repor=ng and compliance

•  Next-‐genera=on matching engine automates matching > 90% of items

•  Built-‐in workflow for excep=on management and cer=fica=on

•  Easy-‐to-‐use templates for standardized prepara=on

•  Automated cer=fica=on •  Quality assurance


Trintech Success Stories Over 600 world class organiza=ons have successfully op=mized their Balance Sheet Cer=fica=on process with Trintech, including:

For more details on these success stories, view our collec=on of tes=monial videos at hNp://www.youtube.com/user/TrintechFinancialGRC or visit our Success Story Library at hNp://www.trintech.com.

“I was looking for a tool and a process that were scalable and provided assurance that all accounts, especially key accounts, were being reconciled each month and on a timely basis. Under the old method it was only going to be a matter of time where we would find that a key account had not been reconciled.” - Dan Martinelli, Controller for the Americas, Google “AssureNET GL allows Delhaize to have greater visibility and control over our business processes across all companies and geographies. This enhances our ability to ensure consistency and data quality, while reducing our operating costs. AssureNET GL is an integral component of our Comprehensive Accounting Excellence program.” - Laurent Carlier, Financial Accounting & Control Manager, Delhaize Belgium

Google


Ready to Take the Next Step? To learn more about Trintech Unity Recon and other Trintech solu=ons for op=mizing The Last Mile of Finance: Call Us: •  1.800.416.0075 (US & Canada) •  +44 (0) 20.7628.5235 (UK)

Or visit us on the web: •  Website: hNp://www.trintech.com •  YouTube: hNp://www.youtube.com/user/TrintechFinancialGRC •  Facebook: hNp://www.facebook.com/TrintechInc •  Trintech Blog: hNp://www.trintech.com/resources/financeblog/

•  TwiNer: @TrintechInc

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Trintech current strategies for optimizing bal sheet certification 8 29-2011