The Group Finance function generates the financial reporting. There are several stakeholders who are interested in this information. They are external – lenders, suppliers, authorities – as well as internal – management, other decision makers, employees etc.
Requirements on financial reporting is that it should be accurate and timely. If a listed company has problems with its external reporting and is unable to maintain quality or deadlines, the consequence for the company can be severe. Thus, this is a business critical process that has to work, which in turn generates requirements for system support and competence.
Addedo’s competence lies in that we know the processes around financial reporting and that we know the supporting systems that we represent. This combination makes us appreciated consultants by our clients and we are often asked for advice when there are changes in the financial reporting.
Addedo is the leading application consultancy company in Sweden within CPM, Planning and Consolidation according to an extensive analysis of the Swedish consultancy market for Business Intelligence performed by Consulting League in 2013.
Our consultants have experience from the business in leading roles such as CFO or business controller, as well as from the systems for which we offer consulting – most of us have been working for Cognos, Frango, Hyperion or SAP. We are also a close team, so there is always someone to bounce ideas off to find the best solution for a specific client.
CFO:s have been working hard for a long time to streamline and automate their work to free up more time for value-adding work to support the business. They have cut time and increased quality in the closing process. Now the next step is being scrutinized. This is where the controlled data flow is often broken; this is when you start cutting and pasting, manually changing in Word and Excel. The production of recurring quarterly and yearly reports is often a heavy, manual process, where small errors can lead to big consequences. Many people are involved, and there can be a lack of control and cooperation. Late changes can generate a large amount of extra work.
This process of compiling the final reports is sometimes called Disclosure Management or The Last Mile. The work involves several people with different roles and different tasks, such as gathering of data, comments, reconciliation, approvals etc.
Some problem areas when it comes to produce a nice-looking, high quality report include:
• All data being reconciled and accurate
• A unified design and format
• Timely publication of the report.
For public companies, it is also crucial that information must not leak before publication.
Creating a finance manual means developed processes, reduced risks and an in-house knowledge. What does your company look like? Are you using the existing documentation in your operations? If you don’t know we suggest you take a look at our model for creating finance manuals.
Addedo has a long experience of producing finance manuals for companies in a number of industries. For this, we use well-proven methods and models.
We see an increasing need among Addedo’s clients for in-depth analysis leading to insight and a stronger competitiveness. Focusing on analysis, insight and action leads to a better profitability long term than traditional distribution of reports and control panels.
Business intelligence (BI) or business analysis is a generic term for applications, processes and methods for organizations to better understand their business and the world around them. The purpose of Business Intelligence is to support decision making.
We can also see an increasing interest for self-service among our clients. In the BI area you can find applications for both corporate performance management (CPM), the similar financial performance management (FPM), operational performance management, competitive intelligence and yield management.
Before taking a closer look at CPM (and FPM) we should touch data warehouse (DW). It’s a compilation of information from multiple sources, structured in such a way that it facilitates an advanced analysis of the information. A data warehouse is always based on a database.
The process of building a data warehouse and making the sources available through integration is called ETL (Extract, Transform and Load). In connection with this, data is cleansed, relevant information is linked, and calculations are performed prior to the DW being used in one of the user interfaces available on the market. Addedo works with a selection of products from Cognos, Qlik, Arcplan, SAP and Microsoft.
Many of these concepts have been invented by software suppliers and analysts in the industry, not necessarily by the clients. Often a new concept evolves when a major supplier has acquired companies and needs a new generic term to market their new portfolio. Or new opportunities are discovered and client needs are created.
CPM is a generic term used by Gartner for financial and operational management. Gartner includes software supporting the following processes in CPM:
• Group reporting and period end
• Management reporting
• Regulatory reporting
• Strategic planning and forecasting
• Profitability modelling and optimization (PM&O)
CPM systems are mainly used by the finance function to support core processes such as consolidation, budgeting and reporting, but nowadays they are also used in other functions, for example for linking strategic goals with operational goals. The market for CPM systems is mature and consists of both large and midsize companies.
Gartner’s Magic Quadrant includes the suppliers offering a wide range of CPM applications as well as some smaller players niched in a particular area of CPM. Addedo partners and system suppliers IBM and SAP can both be found in the upper right corner as “leaders”. A leader is characterized by a large market share in the CPM area and a product range that is both wide and deep, a global way of working and established channels.