It's time to fix the close. Data collection, journal entries, allocations, intercompany loans, GAAP, variance analysis, SEC reporting… There can be chaos that comes with the financial close. Building transparency and structure around financial accounting and the close process can enhance accuracy, reduce effort, and accelerate close cycles to leave more time for value-added activities.
BlackBox chaos causes problems in the record-to-report phase to be identified at the close which lengthens the close process. Finance insights should really be captured starting during the “record” and “account” stages. Unfortunately, disparate, reactive processes create record to report complexity and may impact the ability of finance teams to provide timely and insightful context for decisions causing unnecessary risk to the organization. Manual work across the organization can also delay the consolidated financials.
For finance leaders working in SAP environments, trusted data, strong controls, and automation with AI are all key to a fast close. Here are common traits of fast-closing companies in SAP environments:
- Core Financial Foundation: A modern ERP like SAP S/4HANA Cloud for central finance. The ability to scale and adapt core financial practices and organization structure as the business evolves. Technology that offers the flexibility to shift to/from outsource, co-source or in-source models. Support for shared service center deployments.
- Deep Integration: A dedicated close solution that covers the record-to-report process end-to-end. Integration with SAP solutions that is deep, facilitated through APIs or IPaaS.
- Strong Data Governance and a Tight Control Framework: A central and standardized location for data harmonization. Notifications, alerts, and the ability to escalate tasks within financial workflows. Simplified audit trails, logging, and documentation.
- AI, Machine Learning, and Automation: Automated closing. AI and apps applied where tasks require repetition or matching. Use of AI for anomaly detection to lower close risks and prevent errors before they happen.
- Real-Time Reporting, Dashboards, and Analytics: Real-time closing status for visibility across the business. Predictive analytics and scenario development capabilities.
SAP financial close solutions by BlackLine are designed to give financial leaders the visibility structure and speed needed to make teams more agile and ready to manage record-to-report challenges. They structure the financial close to eliminate chaos. Speed the close using journal entry automation. Prevent exception handling through proactive analysis. Use rules-based automation for high-volume transactions. Build best practices for journal management, account substantiation, transaction matching, financial review, and intercompany transactions. Ensure audit-ready account substantiation and arms-length intercompany transactions.
If you’re tired of the chaos that comes with the financial close join our upcoming webinar Thursday, September 18 (2:00 PM ET). Demystify the Financial Close BlackBox by Adding Structure.
In this webinar,
Part 1 of our financial close series, “
It’s Time to Fix the Close,” we’ll take a detailed look at how to build transparency and structure around financial accounting within the close process. The event will focus on how to enhance accuracy, reduce effort, and accelerate close cycles leaving more time for value-added activities by utilizing SAP financial close solutions by BlackLine.
We’ll explore how to:
- Gain visibility into the typical financial close BlackBox.
- Structure the financial close to eliminate chaos.
- Speed the close process and make it more efficient using journal entry automation.
- Prevent exception handling through proactive analysis.
- Increase precision in audit trail creation with rules-based automation for high-volume transactions.
- Build best practices for journal management, account substantiation, transaction matching, financial review, and intercompany transactions.
- Ensure audit-ready account substantiation and arms-length intercompany transactions.
What this Means for SAPinsiders
- BlackBox chaos can cause problems in the record-to-report phase to be identified at close which can lengthen the close process.
- Trusted data, strong controls, automation with AI are all key to a fast close.
- SAP financial close solutions by BlackLine are designed to give financial leaders the visibility structure and speed needed to make teams more agile and ready to manage record-to-report challenges.
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