Business Advisory Services Indicators

Business Advisory Services Indicators

Financial Close Financial Processes, Policies, and Controls Financial Organization Reporting and Financial Analytics People Technology
Excessive financial “surprises” Undefined, duplicate, and inefficient processes Unstable organizational structure including decentralized organization, ineffective governance, and power struggles Issues with producing consolidated information that support enterprise decisions Issues with producing consolidated information that support enterprise decisions Utilization of stet systems reducing the ability to compare data effectively
Significant rework and post-closing adjustments required Significant rework and post-closing adjustments required Inefficient organizational structure including lack of coordination, shadow groups and misused groups Unreliable information is generated reducing the ability to make effective business decisions Employee morale issues Lack of automation resulting in excessive manual processes and time expenditure
Extended period to close and consolidate financials Implementation of non-sustainable processes Increased reliance on extra-organizational groups and teams Inconsistent internal and external financial data across different business units at corporate and regional levels Unqualified workforce (inadequate skills) Systems environments are dated including utilization of spreadsheets
Lack of time for analysis of financial results before earnings releases resulting in last minute changes and fire drills Quality of output is low or not delivered on a timely basis Excessive time consuming tasks including analysis, reviewing, report production, reconciliation, error correction, and data rekeys Financial information presented does not provide strategic value to the company including a lack of value-added analysis Dysfunctional corporate culture including silo mentality Poor implementation of technology tools including deployment failures
Decentralized organization resulting in multiple layers of review Policies do not provide a strategic focus Organization inefficiencies including poor workflow and reduced responsiveness Reports are not provided on a timely basis or information is inaccessible No emphasis on career development for employees Data structures are inconsistent or incompatible
Inadequate data processing tool utilization and process automation resulting in manual processing Processes, policies, and controls lack standardization and do not effectively support growth Significant spend without associated advancement in capabilities Poor ad-hoc reporting capability Employees not effectively incentivized General underutilization of technology
Data errors from reporting units Implementation of recent cost benchmarking initiative Competitive pressure to cut costs, optimize capital use, and accelerate growth Lack of operational and predictive data Employees lack product, service, and operations knowledge Inadequate competencies associated with technology available
Inability to effectively account for new products, customers, and transaction types resulting in manual workarounds Lack of policies and governance Communication issues Inefficient report distribution including excessive and unnecessary distribution No knowledge sharing between employees and departments Deployment of non-sustainable technology initiatives
Lack of appropriate skills including US-GAAP knowledge Redundancies in processes and policies Lack of shared service model or outsourcing for transaction intensive processes Lack of shared service model or outsourcing for transaction intensive processes Excessive conflict between employees Inadequate technology resources
Risk management questions from the audit committee or delayed audit start date Process inefficiencies driving high cost of financial operations Corporate events including acquisitions, leadership changes, divestitures, risk events, change in competitive landscape, or outsourcing Accelerated and increased reporting and decision requirements from regulating bodies and investors including predictive capabilities Lack of clearly defined roles Implementation of new ERP
Large scale consolidation processes resulting in friction in consolidation process Lack of adherence to accounting policies and regulatory changes Presence of unmanaged risk including supply chain risk and general enterprise risk Data does not support accurate forecasting Staff availability issues Lack of enterprise-wide business intelligence applications
Multiple versions of financial statements Lack of process, policies, and controls optimization Reporting and analytics have not evolved to reflect business and regulatory changes Data transmission issues
Lack of tax and legal entity optimization Risk issues are not reported timely or adequately Fragmented IT landscape
International translation and consolidation result in inaccurate balance sheet data Issues with materiality thresholds

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Montgomery Coscia Greilich LLP
Dallas | Fort Worth | Austin
2500 Dallas Parkway, Suite 300
Plano, TX 75093
(972) 748-0300
info@mcggroup.com

     

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