At first sight, the Record-to-Report (R2R) cycle may look like a stable process. But observers of financial reporting over the last decade know that it is actually in a constant state of flux, buffeted by heavy regulation, accounting standards, changing requirements and technical limitations. This has encouraged businesses to acquire so called “point solutions” to meet specific needs but in the longer term has left many organizations with a patchwork quilt of fragmented technology and spreadsheet workarounds which limit visibility, complicate the financial close and reduce the quality of R2R reporting data. All while increasing risk and cost.
According to recent Deloitte CFO Survey, 68% of CFO’s complain they lack visibility into R2R, while 84% of financial managers admit to having difficulty controlling the quality of financial data. Another study, this one conducted by Accenture, reveals that 88% of global companies have experienced delays in financial close, financial reporting and regulatory filing.
At the other end of the spectrum, a Top Performing Finance Group is able to consolidate tasks across geographies, automate manual tasks, and optimize resources through process-wide visibility, all while reducing R2R process costs. In fact, according to The Hackett Group, for every $5 billion in revenue, a Top Performer saves approximately $4.2 million in process costs. Additionally, Top Performers can reduce the time it takes for financial close, financial reporting and regulatory filing by as much as 33%!
Historically CFO’s have neither had the time nor the resources (financial or otherwise) to tackle the Record-to-Report problem comprehensively. So good money has been thrown after bad as businesses seek to tinker with the edges of the problem rather than tackling the Record-to-Report as a whole. But to be fair, up until now, there has been a complete lack of solutions that lend themselves to a more holistic approach. However a new “disruptive” cloud-based financial governance solution is set to change that.
Enter Cadency, the world’s only financial governance solution that weaves all Record-to-Report activities into a single, seamless process. Cadency, a Trintech Solution, is an end-to-end solution that covers all activities in the process, including: “Certification” for enterprise account reconciliation, “Compliance” for quality assurance and regulatory compliance, “Completion” for financial reporting and regulatory filing, “Close” to manage the entire financial close process and “Journal Entry” to gain management oversight and control of your journal entry process.
Cadency is the first and only enterprise software solution that can elevate any organization to a Top Performing Finance Group.