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How Automation is Driving Efficiency Through the Last Mile of Reporting
- 5. Agenda 2 3 4 5 6 Welcome and introductions Trendsfor the Office of the CFO Last Mile Reporting Challenges Best Practices for Embracing Change How Automation Can Help Questions? 1
- 6. Trends for theOffice of the CFO A review of today’s automation revolution within the finance department
- 7. Top 5 TrendsImpacting Finance Teams in 2024 Environmental, Social, and Corporate Governance (ESG) in Finance Cloud Adoption Process Automation Generative AI Cyber Security and Data Privacy
- 8. The Game HasChanged Doing more with less is a necessity • Planning and reporting responsibilities hampered by lack of resources • Number accounting degrees entering the workforce is shrinking each year • Market volatility is increasing the pace of change • Need for greater corporate agility and data visibility 2023 Financial Trends Survey, Hanover Research
- 9. Transformational Shifts inC-Suite Drive Evolution in Office of the CFO 67% 58% 51% 46% 46% 44% 43% 42% 42% 39% 37% 33% 29% 28% 16% Lack of Skilled Workforce CIO 1960-2010 CMO 2010-2020 CFO 2020+ A Growing Number of Departments Are Now Reporting to the CFO 9 Sources: Jeffries, ELT Offsite, November 2023; Piper Sandler, OCFO Monthly Update, November 2023 Activities & Functional Areas that Report to CFO, % of CFOs of CPA Workforce are Baby Boomers Nearing Retirement 75% 89% of Finance & Accounting Managers Struggling to Find Skilled Talent
- 10. Evolving Regulatory Complexity Increasing complexityin regulatory oversight, particularly tax regulation and compliance monitoring. Digital Transformation Continues And it's expected to continue accelerating, especially as lack of skilled workforce and rising cost of labor remain concerns. Lack of Connected Solutions CFOs take on more responsibility, evolving from scorekeeper to strategist. As primary corporate performance manager and risk manager, they need actionable insights to drive business. Manual Processes Remain Dominant Lack of skilled workforce exacerbates the problem. There is massive whitespace ready for the taking. CFOs still rely upon manual solutions to cover compliance/ regulatory needs ~55% CFOs plan to maintain or increase enterprise-wide digital investments over the next two years ~80% CFOs are interested in switching to a single vendor solution for integrated functions ~80% Sources: Jeffries, ELT Offsite, November 2023; Piper Sandler, OCFO Monthly Update, November 2023 The Complexity of Office of the CFO AP, AR, Compliance and Treasury are still completed manually >50%
- 11. Last Mile ReportingChallenges A closer look at the demands specific to close and disclosure
- 12. Basic Automation isStill Taking a Backseat Even amid mounting pressures and complexity for finance teams 15% of finance teams distribute reports via static pdf 98% Decrease year over year in finance professionals prioritizing automation of businesses lack a sustainable plan for data and technology, the biggest barrier to achieving their vision for a modern finance function 48% * 2022 Financial Trends Survey, Hanover Research
- 13. Complexities Today inReporting: Data Multiple Data Inputs • Relational / Data warehouse • Consolidations • OLAP - cube • CPM / BI • Excel extraction (financial statements) • Excel working papers, schedules, checklists
- 14. Complexities Today in Reporting:Collaboration • Data security and privacy • Lack of database integration / siloed systems • Matching the narrative with the numbers • Alignment of narrative performance report outputs to internal and external consumers Reporting Managers Approvers Report Consumers Reviewers Contributors Peer Analysis Accounting Standards
- 15. Complexities Today inReporting: Regulatory Changes Pressure for transparency • Complex business models • Increasing statutory requirements • Additional SEC filing packages • CSRD • ESG
- 16. Embracing Change Overcoming barriersto digital transformation
- 17. 7 Most CommonBarriers to Change 1. Poor clarity of vision 2. Weak communication strategy 3. Cultural fear of change 4. Absence of organizational buy-in 5. Change fatigue 6. Inadequate resources 7. Lack of governance
- 18. Clearly communicate your vision Get buy-infrom all stakeholders Allocate the right resources early on Offer robust, personalized training Review and adjust your strategy along the way Collaboration will be key Monitor and optimize Overcome Barriers to Change
- 19. Make a little progress every day Progresscompounds Bill Ackman
- 20. How Automation CanHelp Modern technology capabilities for increased controls and collaboration
- 21. Any manual, time-consumingand error-prone tasks are prime opportunities for automation.
- 22. • Sharing ofdata between financial processes at their natural touchpoints is critical for efficiency • Disclosure Management can often have references to solutions that address different business processes. • Knowing where the data resides and having the capabilities to gather the data drives the ability to deliver your disclosure requirements with confidence. Plan Compliance Close Disclosure Mgmt. Connecting Your Processes/Solutions
- 23. Reporting Managers Approvers Report Consumers Reviewers Contributors Peer Analysis Accounting Standards XBRL Tagging Printer Annual Report PreliminaryReport Results Presentation Prelim Announcement RNS Press Release Board Report Management Accounts Maximize the Benefits of Automation Additional opportunities for efficiency gains….
- 24. Connect data fromvarious sources Regulatory requirements Collaborate more effectively Automate manual / time-consuming tasks Security and controls Reduce errors to improve accuracy and consistency Allow Technology to do the Heavy Lifting
- 25. Four Ways toAvoid Late Night Reporting Unify Narrative with Quantitative Information Manage documents centrally eliminating the need for multiple copies of the same information which allows for asynchronous communication across geographically distributed teams Simplify Collaboration Take the Pain Out of XBRL Tagging Automated financial reporting means you don’t have to go back and edit every downstream document Eliminate Copy and Paste Automatically distribute and synchronize narrative content across every platform and every document associated with the reporting cycle Automated financial reporting with embedded XBRL capabilities saves you money and eliminates that extra step of sending reports to an external agency prior to publication
- 26. Thank You insightsoftware.com/contact-us VP ProductManagement, Controllership insightsoftware Jamie.Eagan@insightsoftware.com Jamie Eagan