Automating The Financial Close - Financial Executives International

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Automating The Financial Close - Financial Executives International

FEI CFIT Committee

March 2009

www.trintech.com | NASDAQ: TTPA

Automating The

Financial Close

David Taylor

VP Strategy & Business Development

david.taylor@trintech.com

800-416-0075 ext. 153


Topics

• Company Background

• Recent Trintech activity

• Core Vision: The Corporate Financial Portal

Automating the Financial Close

– A Production Platform for Close and Reporting

– Why Close and Reporting matter now

– Lessons from Manufacturing

• Thank you & Q&A


Trintech

Trintech provides Financial Governance software solutions to improve

management of the critical processes facing the Office of Finance

Reconciliations Reconciliations – Financial Financial Close Close – Compliance Compliance – Enterprise Enterprise Risk

Risk

• Reduce Operational Costs

• Shorten Cycle Times

• Increase the Accuracy and Transparency of Financial Reporting

• Reduce the Risk of Material Weaknesses and Restatements

• Typical ROI One (1) Year or Less

Trintech offers the highest return on investment (ROI) and lowest risk

for ensuring the success of Financial Governance initiatives.


Who is Trintech?

Global

Dallas (HQ) San Jose Chicago Dublin London Rotterdam (Netherlands)

Multiple Geographic Resellers

Experienced

Public Company since 1999 – TTPA on NASDAQ

Serving the Office of Finance for 20 years

Strong Fundamentals

Strong Strong Balance Balance Sheet

Sheet

Steady Steady Profitable Profitable Growth

Growth

Broad Growing Customer Base

22 22 Fortune Fortune 50, 50, 106 106 Fortune Fortune 500

500

600 600 customers customers across across multiple multiple industries

industries


The “Corporate Financial Portal”

• “Single Version of the

Truth”

• Integrated quantitative/

qualitative information

• Status, reports, metrics

and issues across all

financial GRC efforts

• Role-based views for

performers, managers

and executives


www.trintech.com | NASDAQ: TTPA

Automating the

Financial Close


Doing More with Less: A Production Platform for

Finance Operations

•Transform the daily operations in the Office of Finance from

largely manual to technology enabled thus allowing key

resources to focus on critical issues.

•Integrate and automated approach to managing all Financial

Governance activities – reconciliations, financial close, financial

reporting, compliance and enterprise risk.

Close the gap in technology between transaction systems and

reporting that is filled by sheer human effort and

•Provide a production platform for preparation and delivery of

financial information to the market place.

Trintech Aspirations for the Office of Finance


What Drives Change in Close and Reporting?

Business Goals

Streamlined Confident

Agile

Standardize and Consolidate

Processes

• Focus on value-added activities

• Improve service levels

• Train employees faster

• Automation = more work by

fewer people including SSC’s

Cycle times too long

Overlapping requirements

Stressed personnel

Inefficient

Real-time Visibility to

Information

• Monitor key controls

• Enterprise collaboration

• Better information = better decisions

• Isolate and escalate issues rapidly

Lack visibility into processes

Desire for top down approach

Unacceptable level of risk

Uncertain

Business Problems

Supportive Environment for

Enterprise Growth

• Rapid integration of acquisitions

• Smoother transitions

• Framework to support new

initiatives (XBRL, IFRS, TAX)

Lack flexibility to absorb

changes

Turnover is disruptive

Inflexible


9:

What’s Is Wrong with Close the Reporting

Process?

Monitor Status

Manage Exceptions

Assess Risk

Adjust & Approve

Check & tie support

Certify results

Disparate Systems

Process Owners

Reconciliations

Financial Close

Compliance

Risk

Managers

Report results

Management

Regulators

Shareholders

Team Members

Consolidate Data

& Schedule Tasks

Account Balances

Close Tasks

Control Hierarchy

Risk Universe

Record

Evidence

Schedule &

Assign Tasks

Perform

Tasks

Assessment

Reconciliation

Adjustment

Remediation

Certification


10:

Where Close and Reporting Process Breaks

Down

Monitor Status

Manage Exceptions

Assess Risk

Time-consuming

Insufficient evidence

Improper assignment

Adjust & Approve

Check & tie support

Certify results

Disparate Systems

Risk of missing data

Process Owners

Reconciliations

Financial Close

Compliance

Risk

Inefficient / risk of error

No notification

Consolidate Data

& Schedule Tasks

Account Balances

Close Tasks

Control Hierarchy

Risk Universe

Missed deadlines

Report

Inaccurate Information

Evidence

Schedule &

Assign Tasks

Missing certifications

Managers

Other Report dependencies results

Management

Regulators

Shareholders

Perform

Tasks

Assessment

Reconciliation

No standards/controls

Adjustment

Team Members Remediation

Certification


Lessons from Manufacturing- The Product

Recall of Finance

Source: Audit Analytics


A Model of Technological Knowledge

Level of knowledge versus degree of procedure

Art to Science in Manufacturing: The Evolution of Technological Knowledge

Roger E. Bohn, University of California, San Diego


Lessons from Manufacturing - Getting More

from Less

Dimensions of Production Technology on an Art-Science Spectrum –

How activities are

executed

What results are

achieved

Characteristics of knowledge

How knowledge specified

What knowledge about

Extent of knowledge

“Art Art” Embryonic

Technology

Zero procedure;

idiosyncratic

Roger E. Bohn University of California, San Diego

Each on different, mostly

poor

Tacit

Purely know-how

Minimal; can distinguish

good from bad results,

but little more

“Science Science” Ideal

Technology

Fully specified procedure

Consistent and excellent

Codified

Also know-why

Complete


Finance Production Today

Process

transactions

Consolidate Close &

Adjust

- Report

- Process

Transactions

- Close & Adjust

- Consolidate

Report

“Artistic”

Component Chart of accounts *Intercompany Judgment Articulation

An outdated/ill

informed desk

procedure

Level of knowledge versus degree of procedure

Art to Science in Manufacturing: The Evolution of Technological Knowledge

Roger E. Bohn, University of California, San Diego

Finance Supply Chain

An individual’s

complex royalties

spreadsheet


What Can be “Science” in Close and Reporting?

• Administration

• Analysis

• Review/Approval Flow

• Reporting

• Audit Trails

Forecast: IFRS will be “artistic” and

pose new challenges in finance

“production’.


16:

Financial Close and Reporting Pre-Automation

Monitor Status

Manage Exceptions

Assess Risk

Time-consuming

Insufficient evidence

Improper assignment

Adjust & Approve

Check & tie support

Certify results

Disparate Systems

Risk of missing data

Process Owners

Reconciliations

Financial Close

Compliance

Risk

Inefficient / risk of error

No notification

Consolidate Data

& Schedule Tasks

Account Balances

Close Tasks

Control Hierarchy

Risk Universe

Missed deadlines

Report

Inaccurate Information

Evidence

Schedule &

Assign Tasks

Missing certifications

Managers

Other Report dependencies results

Management

Regulators

Shareholders

Perform

Tasks

Assessment

Reconciliation

No standards/controls

Adjustment

Team Members Remediation

Certification


Financial Close and Reporting on a Production

Platform

Systems

Schedule - Review Perform Adjust Review, – Approve Approve - Report

Process Owners

Team Members

Monitor Monitor

-& & Record

Managers

Requirements


Financial Close/ R2R Enabling Technology

Bank Data

Account

Analysis

Compliance

integrated

into detail

task

statements

Dynamic

Control

testing

Integrate

Quality, IE,

with Business

Control

Methods

18

SubLedger

ReconNet

AssureNet

Open Issues

Compliance

& Control

JV, Analysis,

Templates

Updates

Updates

SOX Test &

Certifications

Quality

Audit Testing

Unified

Dashboard

Issue

Isolation

Fully Integrated Workflow

eClose

Updates

eBinde

r

Collaboration task for

footnote creation

Assignment of

segments and

footnotes with

performance tracking

Link compliance, task,

and numbers to

published documents

XBRL supported

Readiness Review of

P&L and Balance

Sheet

Link Task

to

Results

Identify Open Items &

issues

View Line Item Details

Integrated

Validation

Workflow Based

Reporting &

Disclosure

Statement

Income Statement

Income

Sheet Balance Sheet Balance

Flow Cash Flow Cash

Footnote Tax Footnote Tax


www.trintech.com | NASDAQ: TTPA

Q&A

Thank You

David Taylor

VP Strategy & Business Development

david.taylor@trintech.com

800-416-0075 ext. 153

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