Presently, the process of financial month-end close is spreadsheet-driven, and mostly manual in nature. This often results in challenges around accuracy and standardisation. Digital Finance Close (DFC) is a combination of processes and technologies that assists clients to bring in automation and governance to the period end close process.
Potential benefits from DFC
- Faster and efficient period end close
- Centralisation and Standardisation
- Effective accountability, governance and control
- Global visibility on close progress and benchmarking
- Cost reduction through automation/Risk reduction through financial integrity and risk-based approach
- Foolproof Audit trail of reconciliations, journals and tasks
- Reduction of errors and increased accuracy.
Key Focus Areas
- Automatic reconciliation: Facilitates automation of mundane spreadsheet based reconciliations by increasing the overall accuracy and speed required to perform that activity manually.
- Accounts certification: Creates a governance layer of reporting of unreconciled balance and enables actions and dashboards for analysis
- Task management: Creates an electronic checklist of close activities and provides real time dashboard for analysis.
- Variance analysis: Allows analysis of fluctuations in balance sheet and profit and loss (P&L) balances
- Journal solution: Enables governance and automation for booking and approval of financial journals centrally
- Intercompany solution: Enables agreement between the buyer and seller beforehand, reducing potential mismatches
- High volume manual reconciliations
- Delayed close
- Quality/audit challenges for high risk accounts.
- Opportunity assessment
- Vendor selection
- Design, development and deployment.