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Watch how Bramasol played a vital role in hard transition from ASC605 to IFRS 15  for a Pioneer in electronic and design automation company

Posted by Bramasol RevRec Team on Thu, Aug 16, 2018 @ 06:01 AM

A pioneer in electronic design and automation and with a presence in more than seven countries, our featured customer offers bundles of hardware, software, support & training to industrial customers. The Company was running ECC 6.0 with SD Revenue Recognition and was in the process of implementing SAP RAR 1.3 to support a mandated transition to IFRS 15. The project delivers a "hard" transition from ASC605 to IFRS 15, running RAR 1.3 SP02 for ten company codes around the world. The deployment includes a migration of 26000 in-flight contracts.

 

 

As the clear leaders in design and implementation of Revenue Recognition solutions, Bramasol was the natural choice. Bramasol took this task on "In flight" from another system integrator and provided, A group of assets- a dedicated team including A RAR Project Manager, A Solution Architect, RAR Consultants and Developers to have smooth transition and best solution. One of the challenges was to secure the organization's investment in the prior development work. As there is no ‘one size fits all’ approach to this complex scenario, Bramasol could limit the disruption of the integrator change caused to the customer.

Customer Story World pioneer in Electronic Design and AutomationPlease speak to us if you’re facing any transitional issues or implementation challenges, simply Request a demo. If you have a challenging or complex RevRec undertaking or just need the pioneer in SAP Revenue Accounting, do what the Fortune 500 do… Contact Bramasol

 

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Topics: revenue recognition, SAP Revenue Accounting and Reporting, Customer Story, ASC606, IFRS15

New eBook: Transitioning to ASC 842 using the Portfolio Approach to Group Leases

Posted by Bramasol Leasing Administration Team on Mon, Aug 13, 2018 @ 11:11 AM

LeaseAdministration-HotTipWith less than five months remaining until January 2019, when public companies have to comply with new leasing standards, ASC 842 and IFRS 16, your implementation plans should already be well underway.

Even if you haven't started yet, there is still a small window of time to have a successful Q1 2019 implementation to enable reporting 45 days after March 31, 2019 - but only if you proactively begin now.

This new eBook from Bramasol's leasing experts drills down for a detailed look at key issues and best practices regarding usage of the Portfolio Approach to implementation of the ASC 842 Lease Accounting Standard.

new ebook on Transitioning to ASC 842, using the Portfolio Approach to Group Leases

This is beneficial by grouping leases of assets in the same class that is comprised assets with similar lease terms and discount rates.An entity may apply the Portfolio Approach to a group of leases within an asset class when doing so does not materially change the financial statement presentation when compared to applying the individual lease methodology.

Key topics addressed in the eBook include:
  • When can an entity apply the Portfolio Approach under ASC 842
  • Application of the Portfolio Approach in determining the Lease Term
  • Application of the Portfolio Approach in the Incremental Borrowing Rate
  • Practical Considerations for the Implementation of Portfolio Approach at Your Company

 

Click below to download the ebook.

Download the eBook: Transitioning to ASC 842 using the Portfolio Approach to Group Leases

 

 

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Topics: Leasing-Hot-Tips, ASC 842

Building Finance Innovation upon a strong Compliance Foundation

Posted by David Fellers on Sat, Aug 11, 2018 @ 04:43 PM

We can all agree that any physical building needs to have a strong foundation to assure safety of the occupants and sufficient resilience to maintain structural integrity against external forces, such as wind, flood, earthquakes and other potentially damaging events.

StrongFoundationFor CFOs facing the challenges of dynamically changing regulatory requirements, establishing a strong Compliance Foundation is also vital for avoiding the risks of non-compliance, such as legal sanctions, while also ensuring adaptability for accommodating ongoing changes driven by both internal and external forces.

Some companies view new accounting standards as specific painful topics that need to be handled with ad hoc, standalone solutions.  The thinking behind this approach is to “limit the impacts” and minimize changes to other related financial and operational processes.

However, this line of thinking is inherently shortsighted.

Over years of helping many companies on their journeys to compliance with new standards such as ASC 606, IFRS 15, ASC 842, IFRS 16 and others, Bramasol’s experts have found that embracing the changes and making them an integral part of core financial operations is a much more effective and efficient approach. 

Rather than trying to limit the impacts of changing compliance regulations, forward-thinking companies proactively incorporate them as key elements in the central foundation for all related processes.

FoundationDetailAt Bramasol, we firmly believe that Compliance Innovation Empowers Overall Finance Innovation.

Every new compliance program and solution should be treated as an additional important building block to be tightly integrated into the underlying core foundation, and bound together using connective “mortar” such as comprehensive analytics, shared in-memory data sets, agile reporting, configurable dashboards, and built-in disclosure processes.

When deploying compliance solutions that should integrate seamlessly within comprehensive business processes, we always start by looking for solutions that are designed to work with core ERP and Finance systems.  For example, SAP Revenue Accounting and Reporting (RAR) is integrated with SAP FICO and has the flexibility to act as an agnostic engine for revenue recognition with other ERP environments. On the lease accounting front, SAP Contract and Lease Management provides a compliance solution that integrates across existing SAP platforms and directly accesses core data sets.  Looking forward, both of these solutions are designed to integrate with S/4HANA (on-premise or cloud) and Bramasol is proactively providing analytics and disclosure solutions to leverage these integration opportunities.

To help with rapid deployment while still maintaining tight integration, we’ve created purpose-built compliance and disclosure solutions, including our Rapid Leasing Compliance Solution and Rapid RevRecReady Compliance Solution.  Both solutions expedite the implementation process by leveraging pre-built capabilities while providing robust compliance coverage for the relevant regulations.

In keeping with the overall philosophy of building a solid and comprehensive Compliance Foundation, all our purpose-built solutions make use of core SAP Cloud Analytics and data sources, which minimizes duplication, enhances productivity and eliminates isolated pockets of data.

As illustrated below, by building all your compliance activities on a solid foundation of SAP S/4HANA, SAP Cloud Analytics and agile dashboard technologies, each pillar of compliance and finance innovation can be directly integrated with core processes and data.  This makes the entire structure more efficient and improves the coherence between various compliance efforts and ongoing operational activities.

Bramasol-Vision-nobackground

If you’d like to learn more about this approach to building a comprehensive Compliance Foundation, visit here to request a consultation.

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Topics: finance innovation, CEO perspective

Join Bramasol at SAP Controlling Conference in San Diego, CA Sept. 17-20, 2018

Posted by Bramasol Financial Transformation Team on Tue, Aug 7, 2018 @ 05:54 AM

FinancialTransformation-HotTipPlan ahead to join Bramasol and other SAP Professionals at SAP Controlling 2018 conference in San Diego, CA on September 17-20, 2018.

Attend detailed sessions on SAP management accounting including the latest functionality such as S/4HANA. Attendees include end-users, managers, Controllers, CFO's and consultants dealing with master data, transactions, configuration, and reporting for managers.

Conference tracks are grouped together by type of session, as follows:

CTA Controlling-1
  • SAP Reporting/SAP Planning
  • SAP Controlling
  • SAP Product Costing
  • SAP S/4HANA / SAP Material Ledger

Bramasol is proud to be a participating sponsor of SAP Controlling 2018 and we're looking forward to sharing our latest financial controlling and compliance solutions along with hands-on demos of our transformational analytics and S4HANA capabilities.

 

Click here to book a meeting with Bramasol experts at SAP Controlling 2018

 Join Bramasol at SAP Controlling conferance San Diego Sept 17-20 2018

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Topics: FinancialTransformation-Hot-Tips, S4HANA, SAP Controlling, SAP Events

eBook - Real Estate Leases Accounting and Business Considerations for Implementation under ASC 842 / IFRS 16

Posted by Bramasol Leasing Administration Team on Tue, Jul 31, 2018 @ 04:56 AM

In February 2016, the Financial Accounting Standards Board IgnitePossible-HotTip200x130

(FASB) issued Accounting Standards Update (ASU) 2016-02 (“ASC 842”) Leases, which provides new guidelines that change the accounting for leasing arrangements. The new leasing standard becomes effective in fiscal years beginning after December 15, 2018

The primary purpose of the standard is to address the current accounting treatment of operating leases which are deemed to be off balance sheet financing arrangements and are only disclosed via a company’s financial footnotes in the “Commitments and Contingencies” footnote. Upon the adoption of ASC 842, for every identified lease, companies will be required to create a lease liability calculated as the present value of the future fixed payments and a corresponding asset (“right of use” asset).

The right of use asset will be amortized over the life of the lease. The income statement will be impacted by a straight-line lease expense item that would essentially contain an interest component with the amortization of the asset being the plug-in order to achieve straight line lease expense over the life of the lease. One of the key challenges of adopting the new standard will be for companies to assess and apply the incremental borrowing rate applicable to them which will be used in the present value calculations for the capitalization of lease liability and right of use assets related to leases.

The new leases standard will significantly affect lessees and lessors in the real estate industry, including their considerations related to non-lease components, initial direct costs, and accounting for sale- leaseback transactions. In addition, real estate lessors will need to understand the standard’s broader implementation implications for lessees as well as the potential for changes in tenant behaviors.

eBook Real Estate Leases ASC842  IFRS16 TueTip

This eBook also addresses the three most common forms of real estate lease;

  • Net Leases or triple net lease,
  • Modified Gross or Base year Leases and
  • Gross Leases

Lessees and lessors are required to separate lease components and non-lease components (e.g., any services provided) in an arrangement and allocate the total transaction price to the individual components. Lessors would perform the allocation in accordance with the guidance in the new revenue recognition standard, and lessees would do so on a relative stand-alone-price basis (by using observable stand-alone prices or, if the prices are not observable, estimated stand-alone prices).

This eBook will help you explore different accounting treatment for property taxes and insurance, Variable Lease Payments, Initial Direct Costs, Sale-Leaseback Accounting, and at the end best part is Business Impact and Implementation Considerations.

Download the eBook now

As crunch time is here for ASC 842 and IFRS 16 compliance, Bramasol can still help you comply on-time. Ask us how!

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Topics: SAPLeaseAdmin, IFRS16, RLCS, Leasing Solution, ASC 842

If You've Been Using SD RevRec for ASC 606, It Can't Last Much Longer

Posted by Bramasol RevRec Team on Tue, Jul 24, 2018 @ 09:46 AM

RevRecReady-HotTip-12-1During the lead-up to implementation of the new Revenue Recognition standards, ASC 606 and IFRS 15, companies chose a variety of paths to get ready. 

In some cases, they took a long term view and implemented purpose-built solutions such as SAP Revenue Accounting and Reporting (RAR) to achieve compliance, while also laying the groundwork to optimize and transform their financial operations.

However, in some situations, companies simply tried to make as few changes as possible while cobbling together bare minimum compliance approaches.  One of these shortcuts used by companies running SAP was to try and squeeze compliance functionality out  of existing SAP SD Revenue Recognition functionality running in ECC environments.

From the outset, SD RevRec posed a number of shortcomings with regard to meeting the new requirements, including:

  1. No Multiple Element Arrangements: SD RevRec does not support allocation of transaction price, one of the fundamental steps for ASC 606 and IFRS 15. Revenue is always recognized separately for every SD order item according to its specific pricing conditions.
  2. Parallel Accounting: SD RevRec cannot manage different accounting principles, with makes it difficult to leverage automation and increases the effort needed for reconciliation by accounting teams.
  3. Cost Recognition: Cost of Goods Sold (COGS) is not reconciled with revenue recognized.  SD can only recognize cost at the time of PGI or billing, depending on set-up of the pricing scheme in SD.
  4. Disclosures and Reporting: Tranditional SD RevRec is not capable of meeting the new disclosure requirements for ASC 606 and IFRS 15.

SD RevRec tue-tip-24-JulDespite these limitations and the recommendations from SAP that customers transition to RAR, some companies managed to get by with SD RevRec for initial implementation of the new standards.

Unfortunately those companies are now facing another big hurdle in the near future because SD RevRec will no longer be supported as the SAP technology environment moves ahead to S/4HANA.  Current estimates indicate that SD RevRec will become dead-ended by the end of 2020.

SD-RevRec-Deadend

 

So, if your company is in this situation, what should you be doing now?

  1. The first step is to look at implementing SAP RAR as soon as possible.  If you have SAP, you already own the RAR solution as part of SAP FICO. Also RAR can be deployed as a RevRec engine for other ERP legacy environments.
  2. Consult your outside accountants and knowledgeable SAP consultants to define a pilot program running SAP RAR in parallel with existing methods.
  3. Look into leveraging a purpose-built fast-track approach such as Bramasol's Rapid RevRecReady Compliance Solution.

The most important issue is DO NOT WAIT!

The clock is ticking toward the end of SD RevRec and you're going to need a viable alternative in place!

 

Request RevRec Consulting Support

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Topics: revrec hot-tips

Understanding and applying incremental lease borrowing rate analyses under ASC 842

Posted by Julio Dalla Costa on Tue, Jul 17, 2018 @ 04:57 AM

LeaseAdministration-HotTipIn February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 ( “ASC 842”), Leases, which provides new guidelines that change the accounting for leasing arrangements.

Background on ASC 842

The new leasing standard becomes effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for: • Public business entities • Not-for-profit entities that have issued (or are a conduit bond obligator for) securities that are traded, listed, or quoted on an exchange or an over-the-counter market• Employee benefit plans that file financial statements with the US Securities and Exchange Commission (SEC).

For all other entities, it becomes effective in fiscal years beginning after  December 15, 2019, and interim periods in fiscal years beginning after  December 15, 2020. Early adoption is permitted at any time for all entities.

The primary purpose of the standard is to address the current accounting treatment of operating leases which are deemed to be off balance sheet financing arrangements and are only disclosed via a company’s financial footnotes in the “Commitments and Contingencies” footnote. Upon the adoption of ASC 842, Therefore, for every identified lease, companies will be required to create a lease liability calculated as the present value of the future fixed payments and a corresponding asset (“right of use” asset). The right of use asset will be amortized over the life of the lease.

The income statement will be impacted by a straight-line lease expense item that would essentially contain an interest component with the amortization of the asset being the plug-in order to achieve straight line lease expense over the life of the lease. One of the key challenges of adopting the new standard will be for companies to assess and apply the incremental borrowing rate applicable to them which will be used in the present value calculations for the capitalization of lease liability and right of use assets related to leases.

Incremental Borrowing Rate

ASC 842 defines “incremental borrowing rate” as: The rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

ASC842 Incremental Borrowing Rate Bramasol tuesday-tip-17JULYCollateralized basis

The definition of “incremental borrowing rate” in ASC 842 represents a change from how that term was defined under ASC 840. The definition under ASC 842 makes it clear that the lessee is required to assess the rate as a secured rate. Under ASC 840, a lessee was to determine a rate that was “consistent with the financing that would have been used in the particular circumstances,” which could have resulted in the lessee using an unsecured borrowing rate.

Accordingly, if a lessee used an unsecured rate to determine lease classification under ASC 840, the adoption of ASC 842 should result in it utilizing a lower discount rate for determining whether the lease qualifies as an operating lease. When combined with other changes from ASC 840, there is a greater chance that leases classified as operating leases under ASC 840 will be finance leases under ASC 842.

Similar term

In determining the incremental borrowing rate, a “one size fits all” will not be sufficient to be compliant with the new standard. Therefore, companies will need to determine the incremental borrowing rate by average lease terms. For example, the incremental borrowing rate applied to a twenty-year lease should not be the same as the rate applied to a three-year vehicle lease.

Similar economic environment

Many companies have asked whether it is possible to use the Company’s corporate cost of capital borrowing rate which is usually is at the company’s headquarters. As noted in the guidance, the incremental borrowing rate will have to applied to similar economic environments so wherein companies have corporate debt at the US headquarters they will be forced to assess and document the differences in rates in different economic environments such as in countries such as China, Brazil, Argentina and some countries in Africa where the economic environments are vastly different than in the Unites States.

Incremental borrowing rate at date of adoption

The incremental borrowing rate should be applied at the date of adoption which for public companies will at 1/1/2019. Companies should start to assess the incremental borrowing rates as early as possible and then update as needed for any changes to the terms and economic environments throughout 2018 so at 1/1/19, there is a clear and precise documentation of the methods used and assumptions made for the various rates.

Private company’s considerations

Because of the difficulty of determining the incremental borrowing rate, ASC 842 also provides a practical expedient to private companies by allowing those reporting entities to use a risk-free rate to determine lease classification. While the risk-free rate is certainly easier to determine than the incremental borrowing rate, the use of the risk-free rate could result in more leases qualifying as finance leases because the present value of the lease payments determined using the risk-free rate will be greater than the present value determined using the incremental borrowing rate. Accordingly, private company lessees will need to carefully consider the implications if they elect to use the risk-free rate.

Conclusion:

As companies start assessing the adoption and implementation, careful consideration of the incremental borrowing will need to perform because of the challenges in the new definition of the incremental borrowing rate under ASC 842. Companies should start having meaningful conversations with their respective treasury departments to determine the various rates that will need to be applied on 1/1/19.

 

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Topics: leasing, Leasing-Hot-Tips, SAPLeaseAdmin, ASC 842

Transitioning to ASC 842, Where are all your company’s lease documents?

Posted by David Ogletree on Tue, Jul 10, 2018 @ 02:33 AM

LeaseAdministration-HotTipThe new lease accounting standard ASC 842 is effective for public companies beginning January 1st, 2019. The primary purpose of the standard was to address the fact that most operating leases are deemed off balance sheet financing arrangements and currently are only disclosed via a company’s financial footnotes in the “Commitments and Contingencies” footnote.

Therefore, for every identified lease, companies will be required to create a lease liability calculated as the present value of the future fixed payments and a corresponding asset (“right of use” asset). The right of use asset will be amortized over the life of the lease. The income statement will be impacted by a straight-line lease expense item that would essentially contain an interest component with the amortization of the asset being the plug-in order to achieve straight line lease expense over the life of the lease.

Primary issue is locating the entire population of active leases

Since companies were not required to capitalize leases in the past, record keeping for leases were often decentralized.  Most companies did not ever require operating leases to go through a formal capital committee review.  This meant record keeping and leasing terms were often undocumented.  The leasing related companies often transfer(sell) existing leases in their portfolio to other leasing companies making it even more difficult to track down leases.  The new standard is forcing companies to go through the process of locating all their operating leases.  For many firms this is an onerous task as some leases are decentralized and managed by their subsidiaries.  The following is a course of action to gather all the leases for an entity for ASC 842 accounting determination.

These five required steps to completeness and determination will help make sure that all leases have been analyzed for proper ASC 842 adoption.

Make sure all leases have been analyzed for proper ASC 842 adoption_tue-tip-10JUL

1) Commitments and Contingencies Footnote Schedule

Even though companies were not required to account for their operating leases on their balance sheet under ASC 840, there were required footnote disclosures.  The operating leases for future periods were disclosed in the “Commitments and Contingencies” section of their 10-K filings.  This disclosure would serve as a starting basis for all active operating leases.  The footnote would most likely contain a schedule of all future annual lease payments, lease terms, and minimum required lease payments. This schedule would be the beginning basis for the master lease schedule.

2) Leasing/Legal Department Inquiries

Some very large or lease centric companies have a Leasing department.  The Leasing department would likely have a listing of all approved leasing companies and all related contact information. The Leasing department would be the starting point of all lease negotiations and final lease execution. Inquire with leasing management as to their current active lease files.  This population of leases discovered in your initial inquiry of leasing management should detect leases not included in the “Commitments and Contingencies” footnote disclosure.  The Legal department is also a key contact regarding leases(and contracts) to make a formal inquiry.  The Legal department reviews, negotiates, and approves all legal documents.  The Legal department would keep a repository of all approved and executed legal documents.  Access to this contract repository will aid in the detection of “embedded leases”.  Embedded leases are leases under ASC 842 that are within a services contract not currently accounted for as an operating lease and therefore not included in the “Commitments and Contingencies” footnote.   

3) AP Sub-Ledger Analysis

As the company continues to navigate ASC 842 adoption, for completeness purposes, all payments in the AP sub-ledger in the trailing twelve months should be reviewed. These payment records should be reviewed in detailed for any vouchers that might relate to a lease and was not present in the 10-K or the Leasing/Legal department contract files.  Companies should query their detailed AP data for key words such as “lease”, “rent”, “building”, “equipment” and the like.  It would also be prudent to query the AP data for the entity’s common lease related vendors.   The leasing company vendor list would have been provided by Leasing management or AP management.  All leases detected through the AP sub-ledger should be matched against the list derived from the prior lease detection efforts.  All unmatched leases should be added to the original list to continue building the master lease schedule.  The next step in the AP analysis is reviewing payment files for any monthly recurring payments.  Trace these recurring payments to the AP voucher and compare to the master lease schedule.  Any voucher that is recurring and not already included on the master lease schedule would require further analysis to determine if it is indeed a lease. If the payment relates to a service contract, review the contract in the files of the Legal department, as discussed earlier to determine if there is an embedded lease.

 4) GL Detail Analysis

Next, a detailed listing from the general ledger for the rent expense account(s) should be examined and compared against the list derived from the all the previous lease detection efforts.  This is to detect payments or reclasses that are lease related but outside the AP sub-ledger.  This process may reveal wire transfers related to a lease or transactions that are lease related but not detected by the prior lease detection steps.

A detailed listing of the general ledger for property tax and insurance expense should also be examined and compared against the data derived from the previous inquiries.  This listing may detect property taxes and insurance expense for net leases not otherwise accounted for in the prior steps.

5) Treasury Department inquiry

All wire transfer payments should be reviewed for any payments that might relate to a lease.  Treasury departments routinely wire transfer large rent payments, especially related to leased real estate due to the exorbitant late fees charged in standard rental agreements. 

It would also be prudent to review the operating bank statement for wire transfers posting towards the end of the month that might relate to a lease. These wire transfers can be traced back to the wire transfer request documentation to determine if the payment is lease related.

Summary

As companies move through these steps to finalize their entire lease population, it is advisable to return to the Leasing and Legal department with the leases discovered that were not included in their original Leasing and Legal department inquiry.  This will allow these departments to update their corporate files and better manage the lease administration process.  The Leasing Department in collaboration with the Corporate Accounting department, may want to consider having a central repository software program for all the company’s leases, terms, minimum required lease payments, etc.  This will aid the Accounting department on a going forward basis as all new leases will be required to be analyzed for proper ASC 842 lease adherence. It will also allow for much stronger internal controls surrounding the leasing environment, and consequently, more accurate financial reporting.

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Topics: leasing, Leasing-Hot-Tips, IFRS16, ASC 842

Getting Ready for the New Lease Accounting Standards

Posted by Bramasol Leasing Administration Team on Tue, Jun 26, 2018 @ 05:34 AM

LeaseAdministration-HotTipThis recent article in Accounting Today provides a useful summary of the key issues that companies are facing as they get ready for compliance with IFRS 16 and ASC 842.

The changes, which take effect in January 2019 for public companies changes will require companies to recognize all leases as assets and liabilities, unless the lease term is 12 months or less, or the underlying asset has a low value.

Implementation of the new standards will require companies to do the following:

  • Track the details on all lease contracts (buildings, cars, office space, equipment, etc.).
  • Break down the contracts into the relevant components that determine the classification of the Right of Use Assets and Liabilities.
  • Make the appropriate calculations.
  • Generate the appropriate journal adjustments to accurately reflect leases on the balance sheet and income statement.

Regarding the current state of implementation, the article cites these key points:

"As was the case with revenue recognition and other accounting changes, readiness for the new lease accounting guidelines is lagging, and many organizations will be scrambling to comply in the second half of 2018. According to a recent Robert Half/Protiviti survey, more than half of companies surveyed (56 percent) have not begun transitioning to the new lease accounting standard. Sixty-nine percent of the largest firms have started the process, compared to 37 percent of the smallest organizations surveyed."

The top four challenges firms face in the transition include training staff, diagnosing the needed changes, finding professionals with the requisite expertise and updating their technology.

  • Too Complex and Risky for Spreadsheets
  • Best Practices in Lease Accounting
  • Standalone Applications
  • Integrated Applications

Leasing compliance- Implement the new standards IFRS 16 and ASC 842 26 Jun 2018Click here to read the full article in Accounting Today.

Overall, the article underscores the key point that Bramasol has been advocating since the new lease accounting standards were first adopted:  Get Started Now!

Rapid Leasing Compliance Solution Click Here to Learn More

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Topics: Leasing-Hot-Tips

Advanced Analytics Provide the Keys to Compliance, Optimization and Transformation

Posted by David Fellers on Wed, Jun 20, 2018 @ 01:40 PM

If you think of today’s businesses as being like complex organisms, then it becomes easier to understand the critical role of advanced analytics in monitoring organizational health and supporting growth. Just as your body’s nervous system, immune responses and circulatory network provide continuous sensory feedback to identify problems and maintain healthy functioning, your company’s analytics processes are critical for organizational adaptation and survival.

In a very important way, adaptive analytics processes help companies cope with constantly changing external forces, such as new regulatory compliance requirements, market dynamics and competitive pressures.  Analytics are also critical for monitoring internal functions and change programs to provide context, transparency and agility for identifying issues and responding to potential problems before they become emergencies.

For example, major regulatory changes including Revenue Recognition (ASC 606 and IFRS 15), Lease Accounting (ASC 842 and IFRS 16), the European General Data Protection Regulation (GDPR), and others are all impacting compliance requirements for companies throughout the world.  Analytics are the key for successfully unifying internal processes and data to meet these external demands.

With so much external change going on, it’s vital that your organizational sensory and response systems be agile, transparent and comprehensive. To succeed, you need to simultaneously see the big picture and have the flexibility to drill down for detail across a widening range of compliance requirements.

At Bramasol, while working with a broad spectrum of companies across many industries on their compliance and financial transformation initiatives, it has become clear that “analytics” needs to be treated as a core strategy for overall success – with a comprehensive and highly adaptive approach.

Our go-to analytics technology stack spans the creation of purpose-built tailored solutions for issues such as Leasing and RevRec compliance, combined with user-friendly overall dashboards, such as the SAP tile-based analytics launch pad below.

TiledDashboard

Companies need end-to-end integrated solutions for compliance that fit seamlessly within existing operational and financial systems while providing the detailed information, audit trail, aggregation methodologies and advanced analytics to support disclosure reporting.  In addition, company management needs assurance that these end-to-end solutions are capable of being adapted and updated as compliance and disclosure requirements are fine-tuned or to meet special situations.

While there is no easy one-size-fits-all solution for all companies, it is useful to leverage core analytics technologies that can readily adapt to unique requirements while also meshing with existing legacy systems and laying the foundation for forward-looking business strategies.

For example, we’ve standardized on the SAP Digital Core, SAP Cloud Analytics and S/4HANA because these technologies provide flexiblity, scalability and performance for agnostically integrating and anlyzing data from virtually any existing systems and/or legacy data repositories. 

In addition, we’ve gone the extra step of creating purpose-built analytics and disclosure solutions for Rapid Leasing Compliance and Rapid RevRecReady Compliance.  By leveraging these targeted products, companies that just need quick and easy-to-deploy solutions can get up an running fast for basic compliance while also creating a solid foundation for adapting their analytics to meet future needs.

Comprehensive analytics are a key element in any company’s journey of Compliance, Optimization and Financial Transformation.  Beginning with advisory services and analytics integration, with pre-defined disclosure reports and purpose-built out-of-the-box solutions, these core analytics tools enable companies to comply quickly and then optimize their operational processes for driving transformational change.

Comply-Optimize-Transform

 

Only by creating a multi-faceted sensory and analysis strategy that holistically unifies the entire organization can today’s companies hope to stay healthy and compete in today’s global environment.

Learn more by visiting Bramasol’s Financial Transformation solutions.

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Topics: analytics, financial transformation

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