Many organizations continue to experience longer-than-necessary close cycles, inadequate analysis of results, duplication of efforts and overall process inefficiencies. With growing financial reporting requirements on the horizon (e.g., IFRS and XBRL), many organizations are now looking to drive greater efficiency and effectiveness into their financial close process. The challenge they are facing is how to undertake that effort in a manner that minimizes disruption and leverages information technology.
SafePaaS Risk Advisor can help you implement a disciplined financial close process to mitigate the risk exposure related to the quality and timeliness of financial reporting.
For example, we can start by understanding the following: Do business units, individual locations and shared service centers need their own checklists?
Is there value in consolidating checklists for all entities, locations and divisions into one master checklist?
Once we understand the tiers and level of detail required for the close checklist, the next step is to design and implement a streamlined tasks management system. To produce effective reporting, the task management system should be simple, but include relevant data for each activity type (e.g., preparation, review, analysis, etc.).
SafePaaS Smart Controls Cloud provides Advanced Financial Controls to streamline the “calendar” and “checklist” that most organizations use to manage the close activities such as::
Daily monitoring of the close process at an activity level
Identification of dependencies
Audit Trail that can support management control and review requirementsl
Why there are so many False Positives and how to remove them from your analysis
The following key benefits of advanced financial close analytics should be considered in developing a business case:
Management can establish a consistent activity-based process that reports on progress and challenges
Executives can monitor the close process on a daily basis using dashboard reporting metrics
The process and documentation can be used to establish a strong foundation for Section 302 certification, and inclusion of key review activities promotes a clear testing plan for Section 404 related requirements
Information obtained from the tracking of historical performance can be used to assess opportunities for improvement in efficiency to meet SEC filing deadlines
Transparency of the audit trail and ability to identify focus areas to improve overall productivity