Digital technologies have two key attributes that make ondemand financial close possible:
- The computing capabilities to process and automate accounting transactions
- Interoperability with different systems and technology platforms
In today’s business environment, there are three factors enabling on-demand financial close:
1. The evolution of ERPs
Market leaders SAP and Oracle are adopting digital technologies as part of the core design of their ERPs. SAP’s S4/HANA radically automates accounting and reporting through, for example, in-memory cloud computing, simplified data models, and SAP Fiori to port business applications across devices while personalizing and simplifying the user experience. This has a significant impact. It reduces cycle times across the board with an average 75%–80% faster financial close, 77% faster planning and budget cycles, and real-time processing and reporting.
2. Wider adoption of fit-for-purpose micro-services
Cloud-based micro-services like BlackLine’s finance controls and automation platform are agile, modular, and interoperable. Components — such as account reconciliation, transaction matching, task management, financial close tools, variance analysis, journal entry, and consolidation integrity management — embed automation, control, and period-end tasks in day-to-day activities. This allows continuous accounting. Finance teams can reduce process costs, and cut cycle time by improving the ability to continually capture, validate, and deliver timely and accurate financial reporting data.