Because my research practice is centered on important business issues where technology is a key part of a solution, my written perspectives tend to focus on technology. However, it’s almost never the case that a company can just implement some application and fully resolve a business issue. Some progress may be achieved by using more effective tools, but in most cases results will fall short of what’s possible unless people, process and information issues are addressed as well. This is especially true for the accounting close.
At its recent 2014 analyst day Ceridian showed the progress it has made on its Ceridian and Dayforce human capital management (HCM) platform since last year’s launch of its broader HCM portfolio. Ceridian’s overall HCM business, which the company says had revenue of $950 million in 2013 and now has more than 100,000 customers, consists largely of payroll-related products and services such as tax filing and payroll cards, but also benefits, human resources and workforce management products.
Topics: Mobile, SaaS, Social Media, HCM, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Workforce Performance, Ceridian, Document Management, HR, Talent Management
Reconciling accounts at the end of a period is one of those mundane finance department tasks that are ripe for automation. Reconciliation is the process of comparing account data (at the balance or item level) that exists either in two accounting systems or in an accounting system and somewhere else (such as in a spreadsheet or on paper). The purpose of the reconciling process is to identify things that don’t match (as they must in double-entry bookkeeping systems) and then assess the nature and causes of the variances. This is followed by making adjustments or corrections to ensure that the information in a company’s books is accurate. Most of the time, reconciliation is a matter of good housekeeping. The process identifies errors and omissions in the accounting process, including invalid journal postings and duplicate accounting entries, so they can be corrected. Reconciliation also is an important line of defense against fraud, since inconsistencies may be a sign of such activity.
Topics: automation, close, closing, Consolidation, Controller, effectiveness, process management, reconcile, Reconciliation, report, XBRL, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), Accounting, CFO, Data, Document Management, Financial Performance Management, FPM
Earlier this year we published our Trends in Developing the Fast, Clean Close benchmark research findings. The most significant was that, on average, it takes longer for companies to close their books today than it did five years ago. In 2007, nearly half (47%) we closing their quarters within five or six days, but now only 38 percent can do it as quickly.
Topics: close, closing, Consolidation, Controller, effectiveness, process management, report, XBRL, Business Performance, Financial Performance, Accounting, CFO, Data, Document Management, Financial Performance Management, FPM
What’s a fast, free and reasonably reliable way of gauging the effectiveness of a finance department’s management? It’s the number of days it takes it to close the books. Companies that take six days or fewer after the end of the period to close their monthly, quarterly or semiannual accounts demonstrate a basic level of effectiveness that those that take longer do not. In my judgment, finance executives should regard a slow close as a negative key performance indicator pointing to less-than-effective management on their part. I draw this conclusion from our recent benchmark research, which followed up similar research we completed in 2007.
Topics: Sales Performance, close, Consolidation, Controller, process management, report, XBRL, Business Analytics, Business Intelligence, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), Accounting, CFO, Data, Document Management, Financial Performance Management