Unlock value through your Chart of Accounts
In this publication, we highlight the experiences of two large, multinational and one local client that undertook a major general ledger replacement, including two that redesigned their global COA. Structuring the COA to measure the performance objectives of the organization is a priority that should be high on the CFO’s agenda.
A poorly designed COA can hamper your organization’s ability to drive value through performance insights
Vietnam’s economy has been blooming amid global slowdown with foreign direct investment inflow hitting a 10-year record in 2019, and the M&A market remains one of the most attractive Asian destinations, especially for cross-border deals. To meet additional requirements of foreign investors on information transparency, and regulators towards IFRS convergence by 2025, many organizations start their COA redesign journey. Whereas other organizations initiate such a project as a result of irregular business activities such as an acquisition or merger, implementation of the new IT system, or restructuring. Yet regardless of ultimate objectives, with a narrow focus and a lack of awareness of the broader downstream implications, most of the projects fall behind or fail to fully realize the expected benefits. For those considering, or already on the COA redesign journey, this publication outlines eight key steps organizations can take to create a COA that delivers real value to the business.
The eight key steps are:
1. Understand how the COA delivers performance insights
2. Get more out of your COA
3. Listen to the business – Not every answer can be found in the COA
4. Leverage technology – but put the business first
5. Meet regulators requirements and make your finance team engaged
6. Incorporate the needs of your global business
7. Consider the governance model
8. Involve the business in designing the COA