Overview and Project Background
An international real estate management firm engaged the DLC team for support in redesigning their financial reporting process after recognizing gaps in operational analysis and management reporting content.
After experiencing a period of immense growth, the client needed to establish a formal reporting process to share domestic financial results with management on a monthly cadence. Previously, analytical commentary was provided by the client’s accounting staff, but the reporting did not give clarity into the business drivers impacting financial results.
The DLC Approach
The DLC team evaluated best practices for financial reporting based on research and prior personal experience in accounting roles. During this process, DLC consultants also identified business drivers that had been previously omitted from the reporting process that needed to be included moving forward.
Based on the results, the team developed a reporting solution methodology which consolidated results into a format consistent with the expectations of the senior leadership team. The previously provided commentary was enhanced to provide more specific business unit and line item detail.
While the revised financial reporting strategy was being implemented, the DLC team supported the client by developing a business analysis group and setting up a team structure for long-term success. Work included review of current roles and responsibilities and making modifications to ensure business needs were met. The new business analysis group consisted of senior manager and analyst roles while the group was learning the new process.
- Identified accounting and reporting issues that need to be addressed
- Created regional variance reporting packages for operational management and analysts, creating consistent reporting at the regional level
- Developed internal reporting templates and best practices
- Created standardized monthly reports for financial and operational management
- Leveraged the client’s ERP system upgrade to PeopleSoft version 8.3 (web based) to improve report distribution
By establishing standardized monthly reporting and creating teams to support the process, the DLC team was able to automate key monthly reporting processes to create a streamlined workflow for the real estate firm. Additionally, this reduced the time the client team spent on reporting procedures.
As a result, the management team was able to shift their focus completely to strategic and tactical decision making, informed by data.