In a recent study conducted by CFO Research, “A combined 63% of respondents described the state of their finance function’s technology as ‘inefficient,’ ‘silo-constrained,’ or not linked to decision-making.” Furthermore, research from PwC states that the number one method finance professionals identify in making their finance processes more effective is improving their finance technology. At Trintech, we would define financial transformation as having three key components – people, process and technology. While we can’t ignore the people and the process, the biggest driver for change within these three is often technology. It helps to underpin and enforce standardized processes and enables people to be freed from manual, menial tasks to focus their efforts on higher value activities.
Many companies are beginning to understand that there are massive opportunities to improve the Record to Report process. This process consists of all the sub-processes that a company needs to go through to ensure the integrity of the period end numbers, including reconciliations, journal entries, close tasks and activities, compliance controls, and disclosure management and reporting.
Due to inadequate technology, this process is often very inconsistent, fragmented, manual and repetitive due to the result of self-organization, organic growth, mergers and acquisitions, off-shore migrations, etc. In nearly all cases, the challenge lies in that the current process results in at best, informal and undocumented business processes and at worst, bottlenecks – single points of failure, reliance on key-irreplaceable personnel and high degree of risk.
Couple these challenges with technology that is quick to deliver, easy to use, and delivers high, measurable value to the business and it’s clear why so many organizations are turning towards Record to Report automation solutions.
For more information, view our webinar recording which talks through the many challenges companies face without the right technology in place and how Trintech’s Record to Report solution can help align your people, process and technology to achieve a world-class, scalable and compliant finance organization.
Written by: Kelli Shoevlin