Traditional manual accounting process are not sustainable.
Manual processes and legacy tools consume Accounting.
They’re overly expensive, can’t scale with change, and breed unnecessary risk.
From staff accountants to controllers and CFOs, the traditional way of getting accounting work done causes pain for everyone on the accounting team.
These challenges are further exacerbated in this era of the Coronavirus Pandemic, as F&A teams are working in a distributed environment and must maintain compliance and control.
Top Challenges Facing Accounting Challenges Amid in Uncertain times Response:
1. Continuity is a concern, as most teams operate lean and rely heavily on tribal knowledge or a single resource to perform critical tasks.
2. A remote working environment is less efficient in the short term, as it’s not as easy to make quick decisions, understand status.
3. Some companies rely on paper files, binders.
4. Some companies don’t have laptops for all employees (remote shared service centers don’t always provide equipment for remote working).
5. Multiple meetings a day on top of normal meetings about planning for quarter end, what’s changing.
6. Quarter-end is essentially already here so there is very little time to plan.
7. Economic challenges are resulting in furloughs and layoffs, leaving A&F resources concerned about job security.
8. Audits and reviews must also be conducted remotely, which requires management of PBC lists, and both substantive and control testing to be reevaluated.
9. Financial reporting will be a significant challenge, as updating projections, risk factors, and other disclosures will require new information and analyses.
10. Tracking of required tax filings.
11. Continued adoption of required new accounting standards (revenue, leasing).
12. Tax incentives and other regulatory reactions to the pandemic are evolving rapidly and must be considered in results.
13. Key assumptions and inputs to accounting judgments and estimates are likely to change and will require additional effort and impact results.
14. Existing regulatory requirements (i.e. adoption of new accounting standards, filing of tax returns) will not go away, even if delayed.
15. All these new factors are adding more work to the plates of already busy accounting & finance teams, making it even more important for them to focus on what matters most.
Couple these new challenges with those already present with traditional manual accounting processes, and the need to modernize accounting processes has never been more urgent.
The time is now.
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