52% OF FINANCE PROFESSIONALS BELIEVE THEY SPEND TOO MUCH TIME ON TRANSACTION PROCESSING; 42% SAY THE SAME ABOUT MANAGEMENT REPORTING AND 32% SPEND TOO MUCH TIME ON STATUTORY REPORTING
There are many point solution based journal applications on the market, but those applications mainly focus on validation, approval, posting and archiving. While this can result in process improvement of up to 30%, the significant manual effort really occurs further upstream.
To truly automate your journal process, you also need to integrate to system ERPs and disparate systems, retrieve data, and perform calculations. With Redwood, you can automate up to 100% of closing journals related to provisions, accruals and reserves.
Redwood’s financial intelligence means that journal processing ‘understands’ the underlying structure of financial management and ERP systems. In practice this means data can be drawn from underlying systems and written back to the ledgers without missing a beat. Thousands of journals can be processed at the same time and pre-validation rules built into the automation greatly reduce the risk of rejected or incomplete items.
With Redwood, Faurecia was able to successfully automate 32,0000 global manual journal entries per month and onboard 1,300 end users from both the controlling and GBS teams. 80% of journal entries are now automated, leaving only human review and approvals tasks.
Faced with thousands of journals, multiplied up by potentially hundreds of ledgers and thousands of people across the enterprise, the process of approving journals can stretch the limits of practicality. But the ability to set risk-based rules (for example, journal size or class of asset) governing what needs to be approved enables finance teams to focus on the areas of highest risk.
This is one area where automation is particularly valuable. Approval workflows can focus attention on the high-risk accounts, leaving those accounts, balances and risks that are below the risk threshold to be automatically posted.
It’s not just the creation and posting of journals that is labor-intensive. Huge amounts of time are wasted every month explaining the reasons and logic for journal entries. Frequently this 'know-how' is lost or forgotten from one period to the next, leading to journal entries being slavishly copied from one month-end to another without a true understanding of the logic.
Instead, Redwood allows supporting documentation to be stored digitally with the relevant journals. This enables subsequent journals to be posted with full knowledge of what has gone before, cutting down on paperwork and improving the accuracy of the accounting records.
Once established, automation leads to robust and dependable processing. After all, an automated control can be relied upon to work faultlessly every time, something that cannot be said of a manual control. Automation of journal processing leads to higher levels of confidence and control while cutting swathes of time out of the `First Mile’ of finance. Redwood journal processing allows companies to overcome the challenges of disparate systems, missing or incomplete supporting documentation and unreliable approval processes.
To find out more about how Redwood can help control your close
Redwood offers the most comprehensive SaaS Record to Report solution which finally plugs the ‘automation gap’ that still leaves your people undertaking lots of manual work. We offer a flexible and modular approach that allows customers to address their most critical issues first and then create a roadmap to automate the rest of their R2R processes.