Are you grappling with the challenges of moving to S/4HANA?  Everyone in the SAP ecosystem knows that S/4 is coming but many companies are struggling to figure out where and how to get started - often resulting in "analysis paralysis".

All companies need to carefully manage their cash in order to ensure that sufficient funds are always available to support business operations, however, in today’s global enterprises, it can be difficult to maintain clear visibility and management of diverse cash repositories. This can be especially challenging when subsidiaries and other operating units maintain separate external banking relationships within their regional or local environments.

I’ve previously touched on related issues in blog posts on Working Capital Management and the need for a Global Approach to Cash Management. In this post, we are going to take a closer look at another key tool which is called In-House Cash Management.

See the latest developments in Bramasol's industry leading disclosure reporting solutions and accelerators for Leasing and Revenue Recognition, including support for ASC 842 and IFRS 16 and ASC 606 and IFRS 15. Built on the foundation of FASB/IASB reporting requirements these reports will help accelerate your disclosure reporting by 50% or more.

RevRec - Best Practices in Feature Pack and S/4 Migration

October 22, 2019 - 10 AM PDT / 1 PM EDT

If you are a CFO or treasury executive in a globally diverse company, then you're probably already aware of the complexities regarding cash management across multiple business units in many different countries.

Technical Accounting Tips for Optimizing Disclosures and Reporting for ASC 606 and 842

This webinar includes a discussion of Top Ten Technical Accounting Tips for accelerating financial reporting disclosures, which have been gleaned from Bramasol's experience guiding our clients through real-world issues surrounding ASC 606 and ASC 842.compliance.  We've also seen what doesn't work by helping companies overcome false starts and dead-ends.

Examples of the implementation situations covered includes:

• An oil and gas services company found over 100 additional leases in a subsidiary that the corporate office did not realize were still being paid and expensed because it was small amounts and lessors typically would not tell you and allow it to go month to month!
  Lesson Learned: Know where your leases are!
  
  
• A large pharmaceutical company underestimated the data abstraction process and delayed the project by five months because not only did the leases have to be abstracted but also interpreted by outsid
  e leasing accountants.
  Lesson Learned: Better upfront planning can avoid cost overruns and time delays!

 

Working capital is the lifeblood of most organizations and, as such, it needs to be watched closely and managed in a comprehensive, real-time, and proactive manner.

All finance departments must manage working capital to keep their business operations running, while maintaining the agility to support the strategic goals and growth objectives of their business. Working capital management and optimization are key to assuring a business can maintain production, cover the cost of wages and supplies – and also have enough liquidity on hand to service their short-term credit obligations.

Any gaps are likely to be filled by external capital – usually at a higher cost than internally available funding. Being able to accurately measure and manage working capital, and avoid expensive external financing, can provide companies with an important competitive advantage.

Most CFOs use working capital as a key indicator of the operating health of the business. They focus on questions such as: Are we collecting our bills in a timely manner? Are we taking all the discounts that we are entitled to? Are we carrying too much inventory in our warehouses?

These basic metrics all have a direct impact on liquidity. However, the answers to these key working capital questions are inherently dynamic and constantly changing.

According to the Big 4, over 50% of companies experienced a delay in compliance with ASC 606 and 842 due to accounting issues. Those same companies struggled to produce their disclosures and reporting. Underlying this are the technical accounting expertise and disciplines needed for success.