Was accounting ever cool? Well, yes, in a nerdy sort of way. Double-entry bookkeeping, codified in the 15th century by Fra Luca Pacioli, a Franciscan friar and pal of Leonardo Da Vinci, was essential for the expansion of trade and the creation of the modern corporation. Bookkeeping and accounting were as important to economic development as two other financial inventions – insurance and fractional reserve banking. Double-entry bookkeeping is an elegant system, simple yet powerful. It supports the accurate recording of transactions and the economic condition of a business as well as analyses of its performance. That’s cool.
A quarter century after a “fast, clean close” became a key measure of a finance and accounting department’s effectiveness, companies continue to take too long to close their books. Our Office of Finance research finds that 60 percent of companies take more than six business days to complete their close despite widespread agreement that it should be done within a business week. Closing sooner provides executives with financial and management accounting data sooner. A faster close also promotes agility in responding to markets and competitors, frees up departmental resources to enable CFOs to fix process issues that hamper the effectiveness of the department and allows extra time to concentrate on more valuable analytical tasks. Moreover, it’s likely that by focusing on issues that are delaying the close, the department will uncover the root cause of other issues that diminish its performance. “We’re too busy to figure out how to save time” is a common problem in these finance organizations.
OneStream XF from OneStream is a financial performance management (FPM) platform offering planning, budgeting and forecasting, statutory consolidations and reporting. The company was founded in 2010 and has been self-funded, which means that until recently its marketing and brand recognition efforts have been limited. I reviewed the company’s statutory consolidation capabilities earlier this year.
Longview Solutions provides tax departments with a full suite of tax software to manage direct (income) taxes. This includes tax provision and reporting, tax analysis and planning as well as operational transfer pricing and country-by-country (CbC) reporting. A dedicated tax application suite speeds the tax process, enhances control, reduces the chance of errors and ensures consistency in provision, reporting, analysis and planning.
Budget season is about to begin for many companies. I’ve spent a few decades doing research into – as well as thinking and writing about – the planning and budgeting processes in corporations. I’ve closely examined the role of the Financial Planning and Analysis (FP&A) group, which is usually charged with managing the corporate budget process. About seven years ago, I published a research note, “Putting the ‘A’ Back in FP&A”. In it I made the point that the time saved by using dedicated planning and budgeting software and therefore not having to deal with spreadsheet machinations would enable people working in FP&A to do what they were hired to do: Analysis.
Workday will acquire Adaptive Insights for $1.55 billion in cash, with the transaction scheduled to close in the third quarter of this year. The combination adds Adaptive Insight’s well-developed cloud-based financial performance management software to Workday’s workforce and financial management suite. Workday says Adaptive will operate as a standalone business and continue with its current product strategy.
Blockchains are attractive because their built-in security and trust factors make them useful for almost all business interactions involving organizations and individuals. Blockchains have two basic functions. One is as a method for handling transactions involving property such as land deeds, trademarks or other assets. The second involves exchanges of data such as identities of individuals or businesses, the location of an object at a point in time or weather conditions. All interactions involving property or assets include the transfer of data as well, of course, but some blockchain use cases are informational only.
Topics: Big Data, Data Science, Mobile, Marketing Performance Management, Office of Finance, Analytics, Business Intelligence, Cloud Computing, Data Governance, Data Integration, Data Preparation, Internet of Things, Digital Technology, Digital Marketing, Digital Commerce, Operations & Supply Chain
Workday recently presented a technology summit for industry analysts. The presentations focused on Workday’s ongoing product advancements as well as its approach to employing emerging technologies. These technologies include artificial intelligence (AI) and machine learning (ML), robotic process automation (RPA) and bots utilizing natural language processing. Ventana Research uses the term “robotic finance” to refer to these technologies when used in the office of finance. In our view, they will have a profound impact on the nature of white-collar work over the coming decade. Financial management and ERP software vendors are focusing on these technologies because they will disproportionately affect finance and accounting departments: I estimate that their adoption has the potential to eliminate one-third of the accounting department’s workload within a decade.
OneStream XF from OneStream Software is a financial performance management (FPM) platform available on-premises or in the cloud. The company is a relative newcomer (it started in 2010) but its founders are industry veterans and it has a long list of referenceable customers. Being self-financed, it only recently began to raise its market profile. Its SmartCPM system consists of software for statutory financial consolidation, planning, forecasting, budgeting and reporting that’s used primarily by midsize and larger corporations, including large multinationals with complex ownership structures. Designed as a platform, OneStream XF fits into the company’s strategy to offer an array of financial applications developed by itself or third-parties that use a single authoritative source of data.
Accountants love electronic spreadsheets – and for good reason. They’re a powerful and versatile personal productivity tool and just about everyone knows how to use them. Spreadsheets are the default software tool for accountants because they enable autonomy (you don’t need to ask IT for anything) and they’re free (so you don’t have to make a business case to authorize buying something). Some accountants humorously (but earnestly) invoke the line “you’ll have to pry this spreadsheet from my cold, dead hands” whenever somebody suggests eliminating them.
Topics: ERP, Office of Finance, Continuous Accounting, Controller, FASB, IASB, CFO, Financial Performance Management, Spreadsheets, Enterprise Resource Planning, ERP and Continuous Accounting, revenue recognition, Accounting, Lease Accounting, real estate, Lease Management, ASC842, IFRS16, leasing