Using new technology, you can now perform your financial close tasks faster while delivering more accurate and valuable information. However, software by itself will not solve problems in your company’s financial close and reporting processes. Governance and business processes have to be re-designed and training and education programs are likely required. To learn how to work with the four key dimensions of the financial close – people, process, governance and technology – view and share our presentation.

1. How to improve financial
close and reconciliation
management
Moving towards the utopian close

2. Initiatives utilizing new technology can
make your organization’s financial close
and reconciliation processes be more
efficient, accurate and informative.
What?

3. 1. Reconciliation automation from transaction source to reporting line
2. Close management and workflow capabilities, including:
• Electronic management of close tasks and schedule
• Variance analysis
• Manual journal entries
• Financial controls
•
What does financial close and reconciliation
management technology provide?
Reporting line
reconciliation
Account balance
reconciliation
Source /
feeder /
external
files
Financial /
regulatory
reporting
Transaction
reconciliation
Sub ledger GL/ERP Consolidated
ledger

4. By taking on these initiatives, Gartner
sees a 25% reduction in close management
process costs and up to 20% in reconciliation
management.
Cost savings
Source: CFO Advisory: Last Mile of Finance; Finance and Economics – Gartner (April 2012)

5. Streamlining the financial close can help
mitigate the operational risks associated
with running decentralized teams, managing
disparate systems and relying on manual
processes and spreadsheets.
Risk reduction

6. Installing software will not solve all
your close and reconciliation management
problems. It also requires governance
and process re-design, as well as training
and education.
How?

7. Deloitte recommends
a four-dimensional
close and reconciliation
management
framework to help
carefully plan
and execute this
implementation work.
Technology
Governance
People
Process

8. • Clearly defined accountability framework
• Training material made available policy and procedure,
templates and tools)
• Global/regional close champions
• Appropriate segregation of duties (e.g. separate
individuals for reconciling accounts and correcting errors
identified during the reconciliation process)
•
Leading practices
People
People

9. • Aligns resource time with high-value activities to
effectively use people’s talents
• Focuses on analytics and resolving issues rather than
reconciliation mechanics and volume
• Increases accountability and transparency of the process
• Reduces long hours and increased stress levels
around period close
•
Benefits
People
People

10. • Centralized/visible close schedule
• Standardized reconciliation policies and risk based
approach to performing reconciliations
• Clearly defined escalation, resolution and approval process
• Central visibility to reconciliations and variance
explanations
• Controlled and transparent intercompany accounting
• Accounts adjusted and reconciled during month
as opposed to after the close
•
Leading practices
Process
Process

11. • Reduces manual processes and increases levels
of automation
• Improves process consistency to create efficiency and
remove errors
• Uses risk-based reconciliation workflow to focus
effort in the right places
• Reduces processing time and audit cost by
ensuring availability of all supporting
documentation
•
Benefits
Process
Process

12. • Greater management oversight
• Prioritize accounts and deploy resources effectively
throughout the close process
• Clearly defined reconciliation process to minimize
risk of error
• Ability to establish, enforce and maintain standard
policies and procedures
• Active use of dashboards to track close tasks,
variances and reconciliations
•
Leading practices
Governance
Governance

13. • Increases overall accountability and transparency
• Enhances risk management capabilities
• Uses technology to enforce segregation between preparers
and reviewers
• Improves your ability to comply with laws and regulations
•
Benefits
Governance
G
overnance

14. • Automated tools to enable end-to-end reconciliations
• Standardized templates by account type
• Access to timely and accurate information through
robust reporting
• Automated matching of transactions
• Use of workflow to facilitate close and
reconciliation processes
•
Leading practices
Technology
Technology

15. • Automates processes with integration of multiple systems
• Automates dashboard and reporting capabilities to provide
transparency throughout the close
• Automates internal controls to reduce testing
• Automates “certification” of high volume/lower risk
accounts to reduce user time
Benefits
Technology
Technology

16. By implementing the
appropriate tools and adopting
a comprehensive approach and
framework, you can transform
your financial close and reconciliation
management processes to realize
clear and substantial cost reduction
and risk management benefits.
Conclusions

17. For more information on how
Deloitte can help, please visit
www.deloitte.ca

18. Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services.
Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte
operates in Quebec as Deloitte s.e.n.c.r.l., a Quebec limited liability partnership.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee,
and its network of member firms, each of which is a legally separate and independent entity. Please see
www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited
and its member firms.
© Deloitte LLP and affiliated entities.
Designed and produced by the Deloitte Design Studio, Canada. 13-3307