IBM Planning Analytics, formerly known as TM1, is a comprehensive planning and analytics application designed to integrate and streamline an organization’s planning processes. It can support multiple planning use cases on a single platform, including financial, headcount, sales and demand planning. The software automates enterprise-wide data collection to make it repeatable and scalable across multiple users and departments. It supports sophisticated driver-based modeling that enables rapid what-if or scenario-based planning, while its built-in analytics provide deep business intelligence capabilities. This enables senior executives and managers to work interactively to immediately assess their current position and consider the impact of various options to address opportunities and issues rather than laboring through a lengthy process.
Organizations have long sought ways to achieve a fast but “clean” (accurate) financial close. The most widely accepted benchmark is to be able to close within one business week. Organizations that close within a business week are almost always more competent in how they manage the process and therefore use resources more efficiently. Also, organizations that close their books within six days after the end of the quarter are more likely to provide executives with timely information and respond to markets and competitors with greater agility. While there have been some improvements in efficiency from modern accounting systems, our research shows that one-half of organizations still take more than a business week to complete their quarterly close.
The challenges of the pandemic prevented auditors from visiting client offices, which led to widespread adoption of remote audit processes. Although there are outward similarities between a remote audit and a virtual audit, they aren’t the same. A remote audit uses technology to adapt the existing audit processes to an environment where in-person interactions are impossible. A virtual audit uses technology to redefine and streamline how auditors conduct an annual audit.
Irked by the need to account for every penny of his college expenses, poet Robert Frost penned the lines:
Robotic Process Automation (RPA) has emerged as a core digital technology for finance and accounting organizations. It can drive significant gains in productivity and efficiency by automating mechanical, repetitive accounting processes in a continuous, end-to-end fashion. RPA improves efficiency, ensures data integrity and enhances visibility into processes.
Ventana Research recently announced its 2021 market agenda for the Office of Finance, continuing the guidance we’ve offered since 2003 on the practical use of technology for the finance and accounting department. Our insights and best practices aim to enable organizations to operate with agility and resiliency, improving performance and delivering greater value as a strategic partner.
Topics: Office of Finance, enterprise profitability management, Business Intelligence, Collaboration, Business Planning, Financial Performance Management, ERP and Continuous Accounting, Revenue, blockchain, robotic finance, Predictive Planning, AI and Machine Learning, lease and tax accounting, virtual audit, virtual close
The post-pandemic world will see much returned to normal, but there will also be change. For businesses that faced shutdowns, these changes will include higher taxes to pay for the costs of mitigating the economic impact, and the loss of tax revenue. In addition to imposing higher tax rates, some governments will strive to raise revenue by accelerating their adoption of digital technologies to enhance compliance. Taxes are the largest single expenditure for most corporations, both taxes on their income, and indirect forms of taxes such as value-added taxes (VAT) and sales and use taxes. Minimizing tax expense within the limits of the law must be a priority for CFOs.
BlackLine recently held its first virtual user conference, Beyond the Black, where it detailed numerous additions and enhancements to its applications. Of note was the launch of BlackLine Cash Application, an accounts receivable (AR) processing software based on software originally developed by recently acquired Rimilia. The new application fits the company's product strategy of providing accounting departments with software that automates time-consuming repetitive tasks and substantially reduces the amount of detail that individuals must handle in performing core processes.
Can you imagine a more arcane and boring topic than accounts receivable? Unless you are the CFO, controller, chief accounting officer or treasurer of an organization, maybe not. Anecdotally, as it’s part of the trend to the digital transformation of all things in the department, there appears to be greater interest in this area of the Office of Finance. With populations locked down and the accounting staff unable to work in an office, the need to operate virtually has accelerated the application of technology to finance and accounting departments, which has been long overdue.
Enterprise resource planning (ERP) systems are central to nearly every organization’s management of operational and financial business processes. They are essential to the smooth functioning of an organization’s record keeping, accounting and finance tasks. In manufacturing and distribution, ERP manages inventory and logistics. Some ERP software vendors incorporate an extended set of capabilities that include managing human resources as well as supply chains and logistics. In the 2020s, technology will drive fundamental change in how ERP systems operate and how companies use the software.