Financial transaction process optimisation
Financial transaction process optimisation helps CFOs to improve the financial value chain automation: reviewing information systems, analysing current configurations in order to improve productivity and efficiency.
Financial transaction processing is more than merely the capturing of financial data or performing accounting transactions. It involves a set of activities that are the foundation of doing day-to-day business; accounts payables, inventory and fixed assets management, general ledger accounting, project accounting, travel and expense processing and treasury management.
These processes are key fundamentals for a finance department to be cost and time efficient and able to deliver high quality information. Even so numerous companies struggle in these areas, due to for instance to: no alignment of systems and data, complicating the consolidation of information across business units, excessive manual processing which increases the potential for human error, lack of clear governance over data, inadequate technology for automating process controls.
Here are a few of the challenging situations you may face as CFO:
- No alignment of systems and data, complicating the consolidation of information across business units
- Excessive manual processing, increasing the potential for human error
- No clear connection between reports and performance measures of transaction processes
- No clear connection between day-to-day operations and shareholder value
- Data environments that rely on manual/poor controls
- Lack of clear governance over data
- Lack of clear regulatory guidance, making it hard to identify the most critical controls
- Decentralised operating models and lack of standardisation, which multiply the number of systems
- Inadequate technology for automating process controls
- Difficulties in providing timely, accurate and meaningful financial and operating information at the end of each period
- Review information systems and processes against world-class benchmarks to identify opportunities for optimisation.
- Analysis of current information system configurations.
- Design and implement processes and/or technology to optimise the processing of G/L and sub ledger transactions on an ongoing basis.
- Design processes to optimise accounting transaction processing in the areas of internal controls, access and IT controls and segregation of duties.
- Design and implement remediation plans and sustainable process improvements.
- Identify, design and implement systems to capture tax relevant financial data in support of tax compliance activities.
- Review of system’s capacity to deliver business defined objectives.
- Reporting on mis-alignment, including issues and corrective recommendations.