JOURNAL ENTRY

Eliminate manual effort and accelerate your close. Automate the entire month-end journal process, from creation through to approval, with Redwood’s cloud-based solution.

MANUAL JOURNAL TASKS DOMINATE THE CLOSE

Journal processing is one of the main activities within the period end close. Over 50% of close tasks are journal-related. Journals help keep the books in balance and financial statements compliant and accurate. But the burden of journal processing in the accounting cycle is immense and growing as finance professionals look beyond the general ledger for more varied sources of data and insight. Each sub-ledger or fresh source of data adds to journal complexity, much of which is paper-bound and manually intensive. Never has there been a greater need for journal entry to be automated.

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

FSN Research “Future of Financial Reporting”

FULLY AUTOMATED JOURNAL PROCESSING

Many existing point solutions focus only on the validation, approval, posting and archiving of journals. While this can result in process improvement of up to 30%, it is just the tip of the iceberg. The bulk of the manual effort occurs further upstream.

To truly automate your journal process and get the maximum benefits, you also need to integrate with ERPs and other business systems, retrieve data and perform calculations. Redwood helps you automate up to 100% of closing journals related to provisions, accruals and reserves.

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INTELLIGENT JOURNAL ENTRY

Redwood’s finance automation intelligence means our journal processing ‘understands’ the underlying structure of financial management and ERP systems. This allows data to 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 reduce the risk of rejected or incomplete items.

With Redwood, Faurecia was able to successfully automate 32,000 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.

Christophe MacGarry, Global Finance Transformation Director, Faurecia
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FOCUS ON YOUR HIGHEST RISK AREAS

The process of approving thousands of journals can stretch the limits of practicality. But the ability to set risk-based rules around criteria such as journal size or class of asset, which govern what needs to be approved, allows finance teams to focus on the highest risk areas.

The approval workflows in Redwood’s finance automation help staff focus their attention and effort on the high-risk accounts and leave those accounts, balances and risks below the risk threshold to be automatically posted.

DOCUMENT THE JOURNAL PROCESS

It’s not just the creation and posting of journals that is labor-intensive. Time is 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.

Redwood’s finance automation allows supporting documentation to be stored digitally with the relevant journals. Subsequent journals can then be posted with full knowledge of what has gone before, cutting down on paperwork and improving the accuracy of the accounting records.

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BUILD CONFIDENCE AND CONTROL

Redwood’s finance automation delivers more robust and dependable journal processing. Automated controls eliminate human errors and can be relied upon to work faultlessly every time. Our automated journal processing helps companies overcome the challenges of disparate systems, missing or incomplete supporting documentation, and unreliable approval processes. Finance automation also leads to higher levels of confidence and control, as well as cutting swathes of unnecessary time and manual effort out of the journal process.

To find out more about how Redwood can help control your close

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Frequently Asked Questions

What is journal entry automation?

Journal entry automation addresses one of the most labor-intensive and time-consuming elements of the period-end entity and group close. Journal entry automation collects information from ERPs and business applications, applying business rules you specify to transform and posting the appropriate values back to your ERP, reducing manual effort by 80-100 percent. Explore how automation accelerates the entire record to report process.

What is a typical journal entry automation process?

To create a journal entry, finance and accounting team members must source the appropriate data, perform relevant calculations, populate standard templates, obtain approvals, and, finally, post the finalized journal entry in the ERP. This end-to-end process is a common candidate for automation due to the repetitive manual activities involved. Learn more about Redwood's finance automation capabilities.

What are the steps to create a journal entry through automation?

Rather than simply managing approvals, truly automating journal entry begins with gathering data and reports from your enterprise ERPs and business applications. Once data is collated and transformed, then the appropriate review can be made by the team in advance of automatically posting the results, including a full audit trail. Discover how Redwood’s platform delivers enterprise-wide automation.

AUTOMATE TASK EXECUTION ACROSS R2R

Redwood plugs the ‘automation gap’ that still leaves your people with lots of unnecessary manual work. Our comprehensive SaaS finance automation solution offers a flexible and modular approach that allows you to address your most critical issues first, then create a roadmap to automate the rest of your R2R processes.

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