Financial Consolidations,Planning and Reporting Optimization

Event Sponsor

© 2011 Proformative. Proprietary and confidential

Welcome to Proformative

Proformative is the largest and fastest growing online resource for
senior level corporate finance, treasury, and accounting professionals.
An ad-free, noise-free community of more than 400,000 CFOs,
Controllers, Treasurers and related professionals
A resource where corporate finance and related professionals excel in
their careers through:
Uniquely valuable, online Peer Network
Direct subject-matter-expert advice
Valuable Features and Resources

All of it completely free and noise-free
Check it out at www.proformative.com

Learning Objectives

After participating in this event you will be able to:

• Define how to successfully expand your accounting and financial reporting to
cover your growing business

• Associate tools, services and options for managing accounting and FP&A for your
multi-entity, global company

• Define how your systems and operations directly effect profitability and outcomes
for your global company

• Hear success stories from finance and accounting executives who took their
global organizations to new heights in effectiveness and ROI


THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Global Business Management
Accelerating Financial Consolidation and Achieving Transparency
Paul Turner
Senior Director, NetSuite

Supporting Today’s Global Business

1 Your customers and employees are spread around the globe

2 Complex currency translation and revaluation

3 Large #’s of intercompany and minority interest eliminations

4 Complex local tax compliance (Sales Tax, GST/PST, VAT, etc.)

5 Increasing need for audit trail

6 Scant local IT resources


Substantial Local and Global Change
Greater need for
New Revenue business
Recognition Models visibility

Local sales tax
Shrinking IT changes
resources

Geographical
Launching new regulatory
subs and geos change

New billing Mergers and
models acquisitions


Multiple Systems Strain Finance Resources

Worldwide HQ
GLOBAL

AMERICAS EMEA APAC
REGION
COUNTRY

Canada USA Brazil France UK Germany Japan Australia China


What It Means:

Lengthy cycle to roll up financial results from subsidiaries

Lack of visibility into subsidiary’s financials

Lack of confidence in financial data for corp and subs

Error-prone, inefficient, time-consuming manual processes

“Siloed” meaning no 360° view of corporate performance

Onerous local accounting, tax and compliance requirements

Error prone managing currency exchange rates with historical
accuracy


Visibility is the Missing Link in Today’s ERP


NetSuite’s Global Business Environment

Publicly traded on New York Stock Exchange (“NYSE”)

$190M+ revenues; 10,000+ orgs in 20+ countries

1,300+ employees with offices in 9 countries

10+ subsidiaries (not all are cost centers)

1,500+ orders processed a month

Operations staffed internationally

Majority of finance/accounting resources outside US


How NetSuite Runs Its Global Business

Manage the Entire Business in the Cloud
Lead => Estimate => Sales Order => Billing => Financial Reporting

Single System, Single Database
No data warehouse

All 1,300+ employees log into the same system
Access to information from any location - only limited by role

Real-Time Consolidated Data
Full drill-down => from financial statements to individual tx’s

Multi-Dimensional Consolidation
Worldwide, Regional and Country views

Local Control, Global Roll-up
Localized UI and currency
Regional and global visibility in-context

11 © 2011 Proformative. Proprietary and confidential

Global Cloud ERP: One Shared Data Source

Worldwide HQ

ECOMMERCE SINGLE CRM+
DATA
SOURCE

FINANCIALS
AMERICAS EMEA APAC

The Secret for an Efficient
Consolidation Process
Real time financial consolidation and transparency
Easy web access to all parent and subsidiary data
Multidimensional reporting - worldwide, regional, country
Country specific financial and regulatory compliance
Calculation and payment of local taxes in the local currency
Single chart of accounts or custom per subsidiary
Intercompany journal entries posted from a single screen
Automate cumulative translation adjustments
Ability to drill down to each account for audit
Automate period end revaluation
Simplified accounting close process and complete audit trail

Cloud Apps Make Global
Business Management Easier

Mobility
Distributed workforce, outsourcing,
contingent workers, any device

Self-Service
Submit web based time and
expenses and purchase requests via the web
Self-serve customers, vendors, partners

Visibility
Real-time role based dashboards,
Self-service reporting and analytics
Personalized

Reporting from a Global View….


Reporting the Subsidiary Perspective…


Improved Reporting: At the Customer Level


Cloud Playing an Increasing
Role in ERP Deployments…….

For Example….
Fastest Growing Company in History

• Launched 2008

• 7,000+ employees

• 20m+ Groupons sold

• 45+ countries

• 500+ cities

• +1 country
every 3 weeks


Challenges

 Managing hyper growth
 Great Plains & Sage
 Non-integrated
 Data integrity
 Spreadsheets
 Manual process


Project Goals

49 countries

12 months

100% cloud

One system

Global ERP at “Groupon Speed”
5 Countries in 6 Weeks, 26 Countries in 3 Months,
49 Countries by Year End 2011

Australia Emirates Hong Kong

Korea Argentina India

Netherlands Chile Malaysia

New Zealand Colombia Philippines

Thailand Mexico Singapore

Israel Peru Taiwan

South Africa Uruguay Austria

Turkey Japan Switzerland


Results

Foundation for Groupon velocity
Instant financial consolidation

Multi-currency, multi-language, multi-tax
Eliminated spreadsheets

Self service reporting

Resources on growth, not operations


Is Cloud Right for You?
Viability + Customization is Key


Cloud Global Business Management
Can Transform Finance Performance

Global Cloud ERP enables you to:
Stay abreast of latest accounting changes
Scale a distributed finance organization
Achieve real time consolidation and detailed visibility
Ensure subsidiary customization and control
Grow without local IT resources
Reallocate IT budget from maintenance to innovation

25 © 2011 Proformative. Proprietary and confidential

Thank You


Polling Question


THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Planning and Reporting Best Practices
Tracy Schreiber
Director, Product Marketing
Adaptive Planning

Agenda

• Expectations of Today’s CFO
and Finance
• What You Need to Get There
• Planning and Reporting Best
Practices
• Technology


Finance Organization Vision
• Integral part of management
Expectations have increased for team to support value/wealth
Finance organizations • Focused on decision creation
support • Identifies opportunities and
• Provides sound provides critical information and
financial analysis to analysis to make superior
management for operating and strategic
making financial and decisions
• Focused on operating decisions
process and risk
• Dominated by minimization
reporting and
compliance
functions

Stage Transaction Controlling the Planning & Integrated Functional
1 Management 2 Business 3 Analysis 4 Excellence

Role Bean Counters Process Managers Business Partners Value Managers
• Financial • Management reporting • Performance • Superior decision support
Key Capabilities accounting management to invest wisely
• Tax
• Audit • Analysis • Business Development
• Treasury • Enterprise risk
management
Challenge Number of Consistent process Talent and insight Leadership and
transactions excellence into valuable drivers performance
management

Source: McKinsey & Company

CFO Leadership &
Higher
Performance Management Maturity

Stage 4: Integrated
Functional Excellence
Leadership

Stage 3: Planning & Analysis

Stage 2: Process Managers

Stage 1: Bean Counters
Lower

Lower Performance Management Maturity Higher


Obstacles – Does This Sound Familiar?

1. Managers deluged with data, metrics and reports that
provide little value – can’t see the forest for the trees
2. Wasted time, managing to budgets and reports instead of
managing business – this has huge cost
3. Or, no participation from managers at all – lost
opportunity
4. Poor service to business managers from finance –
managers don’t get the information they need, when they
need it
5. Ineffective use of technology – spreadsheets


Corporate Performance Management (CPM)

• Best Practices
Integrated • Supported by the right
Performance
Management
technology

Continuous Cycle

The Right Technology

• Not Spreadsheets
– Inefficient
– Error-Prone
– Inefficient
– Prevent adoption of best practices
• Not Large On-Premise CPM Applications
– Expensive
– Complex
– Long deployment time
– Huge IT involvement


Cloud-Based SaaS is Mainstream for Business

Worldwide SaaS Market Growth 2007-2012
CAGR

On-Premise SaaS
ERP, SCM, HCM, CRM, PLM ERP, SCM, HCM, CRM, PLM

Source: AMR Research

“SaaS is now commonplace and having a very real impact on IT.
Users should not wait but should explore cloud and SaaS
opportunities from new vendors.” Gartner


SaaS Delivers Significant Advantages

On-Premise Model Cloud-Based Model
 High upfront cost  Low annual subscriptions
 Need new HW and SW  Does not need new HW or SW

 Implement in months/years  Implement in weeks

 IT support needed (initial & ongoing)  No IT involvement required

 High risk: big upfront purchase  Low risk: can cancel at any time

 High overall TCO  Low overall TCO

 New releases every 1 – 2 years  New releases 4x per year

 Time consuming, costly upgrades  Automatic, disruption-free upgrades
 Designed for techie users  Designed for business users

 Difficult to try before buying  Immediate trial – try before you buy


Purpose-Built Planning & Reporting
Application

Allow Finance to build better plans and make room for higher-value work than
formatting and troubleshooting spreadsheets
• Driver-based and assumption-based planning
• Integrated financial statements
• Automated workflow & audit trail
• Automated consolidation, across worldwide entities & currencies
• Centralized database with tight integration with other enterprise systems
• Version control
• Reports, dashboards, KPIs, scorecards with real-time data
• Easy to use; no programming skills required
Provide true value to managers, elevate value of Finance,
lighten reporting load for the entire organization


CPM Best Practices

1. Deliver timely and accurate
dashboards, KPIs and
reports
2. Re-forecast frequently
3. Create driver-based plans
4. Perform what-if analysis
5. Drive enterprise-wide
collaboration


Finance Organization Vision
• Integral part of management
Expectations have increased for team to support value/wealth
Finance organizations • Focused on decision creation
support • Identifies opportunities and
• Provides sound provides critical information and
financial analysis to analysis to make superior
management for operating and strategic
making financial and decisions
• Focused on operating decisions
process and risk
• Dominated by minimization
reporting and
compliance
functions

Stage Transaction Controlling the Planning & Integrated Functional
1 Management 2 Business 3 Analysis 4 Excellence

Role Bean Counters Process Managers Business Partners Value Managers

Key Capabilities • Financial • Management reporting • Performance • Superior decision support
accounting • Tax management to invest wisely
• Audit • Analysis • Business Development
• Treasury • Enterprise risk
management
Challenge Number of Consistent process Talent and insight Leadership and
transactions excellence into valuable drivers performance
management
Source: McKinsey & Company

CPM Best Practices
to Improve Processes and Reporting

reports
collaboration


Best Practice #1:
Timely and Accurate Dashboards, KPIs & Reports

• Integrate actual data from other enterprise applications (or just
your GL)
• Import data easily and frequently
• Use drag-and-drop report builder to create variance reports,
month-end management and board packs
• Give managers dashboards to analyze results

Make budget managers more autonomous and efficient with
self-service reporting tools, and free finance for higher-value
added activities


CFO Leadership &

Stage 3: Business Partners
Higher

– Planning & analysis
– Focused on decision support; provide sound financial
analysis to management
– Capabilities include performance management
– Challenge = insight into valuable drivers
Leadership

Stage 3: Planning &
Analysis


Stage 1: Bean
Counters
Lower



CPM Best Practices
to Improve Planning & Analysis

reports
collaboration


At what point do you expect your annual budget
targets to become obsolete?

Source: Beyond Budgeting Roundtable (BBRT)


Best Practice #2:
Re-Forecast Frequently

• Continual rolling forecasts for improved validity and
better decision-making
• React to changing conditions
– Market
– External factors
– Internal factors
• Ensure that forecasts do not become unrealistic over
time

Make better decisions, more quickly


Best Practice #3:
Create Driver-Based Plans

• Calculate revenue, expenses, balance sheet and cash
flow using key assumptions
• Focus planning process on controllable activities
• Create plans that are integrated across functions
• Free managers from focusing on minute details in
planning
• Results in model that can be easily updated for what-if
scenario analysis

Drive more accurate plans, and free finance and
managers for higher-value activities

Best Practice #4:
Perform What-If Analysis

 Perform what-if scenarios and change analysis before
finalizing plans
 Be prepared for all occurrences
 Consider factors with huge implications on plans
 Predict effects of key events

Preparedness makes a big difference in the success of your
business


CFO Leadership &

Stage 4: Value Managers
– Integrated Functional Excellence
Higher

– Integral part of management team; identifies opportunities and provides
critical information & analysis
– Capabilities include superior decision support
– Challenge = leadership & performance management Stage 4: Integrated
Functional Excellence
Leadership

Stage 3: Planning & Analysis


Stage 1: Bean Counters
Lower



Best Practice #6:
Drive Enterprise-Wide Collaboration

• Involve more people in the process
• Consider viewpoint of all functions
• Lower-level employees can have visibility that
executives do not have
• Make it easy for your managers to participate
– Clear process
– Easy-to-learn tool
– Customized to fit their business

More people involved in the process results in better
insight into the business, and more accurate plans.

Summary

• Finance can earn its place at the strategy table
– Deliver value-added services and performance improvement
insights
• Liberate your managers
– Free them from detailed annual planning
– Replace budgets with continuous planning reviews
– Fast, frequent, relevant KPIs

Best practices + SaaS technology +
purpose-built planning and reporting application =
effective corporate performance management


Q&A


We will send you a follow-up survey and would
appreciate your feedback.

Please join us at www.proformative.com to ask any
additional questions you may have and to continue
this conversation with your peers and the experts
you heard from today.

If you have questions about CPE Credit please contact
Tonya Walsh at twalsh@proformative.com


Financial Consolidations,Planning and Reporting Optimization

Recommended

Recommended

More Related Content

Similar to Financial Consolidations,Planning and Reporting Optimization

Similar to Financial Consolidations,Planning and Reporting Optimization (20)

More from Proformative, Inc.

More from Proformative, Inc. (20)

Recently uploaded

Recently uploaded (20)

Financial Consolidations,Planning and Reporting Optimization