In today’s business environment Corporate Governance, compliance, SOX and increasing regulatory complexities present very challenging issues for Financial Leaders.

Existing processes do not always meet the stringent tests of today’s governance or regulatory standards. All too often ERP systems do not live up to their stated goals.  It is also often unrealistic to wholesale replace the existing financial systems in an effort to transform financial systems and processes to address identified problems.

This is where ThinkNet comes in. ThinkNet has a unique blend of financial and systems expertise. We have helped a wide variety of companies, from Fortune 50 to mid-market with creative, effective solutions that transform their finance operations. With our unique, targeted approach and clever use of leading technologies, we have solved many complex problems for our clients, quickly and effectively.

So what kind of challenging issues are there?

Here is are some examples:

Issue 1: Financial Restatements

Financial restatements are a serious business.  They’re not the kind of exercise any organization wants to undertake.  And doing it wrong means you might end up doing it twice.  There are many crucial steps you need to take to make sure it is done right, and you have the evidence you need at your fingertips to answer any regulatory or shareholder questions. 

When restating your financial results you need to consider several important and delicate issues. 

How will you:

• Handle the material weaknesses in existing processes and controls?
• Collect restated items, reclassifications, changes in estimates, recognition of timing and documentation in a systematic, controlled manner in the light of existing processes and/or control weaknesses?
• Handle issues of inter-listed reconciliations for differences in GAAP?
• Handle complex revenue recognition interpretations?
• Handle other complex accounting adjustments such as stock options?
• Ensure that you have an objective review of restated items?
• Keep the Board apprised of progress, impacts and status of the restatement process?
• Handle class action claims?
• Handle regulator inquiries?
• Demonstrate to shareholders that the restatement process is complete?
• Establish corrective actions to prevent future re-occurrences?
• Complete the restatement in a timely fashion?
• Reflect finalized adjustments in your reporting systems?

ThinkNet's Financial Suite offers a comprehensive package of solutions tools.  We understand your situation.  We’ve been there. We have assisted global organizations, including Fortune 50s, with their restatements, and understand the intricacies of all of these important issues. We have an experienced team with well-developed restatement expertise, processes and specialized restatement software to assist your organization in executing a restatement efficiently and effectively.   

Issue 2: Material Weaknesses/Significant Deficiencies

Occasionally, material weaknesses are discovered in the processes and systems of your organization.  Sometimes these are a result of outdated systems, poor system integrations, rapid growth, poor implementations, manual processes or other shortcomings.  Some suggest that the only way to deal with these situations is to replace your entire system.  At ThinkNet, we think that replacement should be your last resort.  We have found that often strategically targeted systems or application of web-based technology to harden the controls for high-risk accounts (e.g, accrued liabilities), can produce better results and allow you to quickly and efficiently address the weakness and move your business forward. 

Issue 3: Excel Mania

If your finance organization is like most, many processes you’ve come to rely upon are based on Excel spreadsheets.  Often these Excel tools started as quick, temporary, solutions, but having proved their usefulness they became part of the fabric of your organization.  The trouble is that most of these Excel systems lack auditability, security and controls that are required, and your organization now relies on these tools to operate in today’s environment. ThinkNet has developed a unique toolset to help organizations migrate away from these systems to solutions that offer easy-of-use and flexibility while at the same time providing the auditing security and controls required.

Issue 4: Processing Late Entries

Do you have an effective way to monitor and assess the impact of late or correcting entries that continue to flow after the general ledger closes and the external reporting process begins? Many companies resort to manual spreadsheet-based processes to assess the materiality of “post-close adjustments”, however there’s a much better solution. Our web-based tool collects late entries, performs validation, offers workflow and authorization controls and provides “adjusted” financial statements for your review. Decisions can then be made to revise the current period statements, or if immaterial, post to the following period.

Issue 5: Manual Journal Entries

When it comes to financial processes and procedures it could be said that “manual” and “risk” go hand-in-hand. Entries that are system-generated usually come from sources that are more easily tested and lend themselves to standard audit procedures. Manual journal entries are much more difficult to handle. Being able to collect, track and monitor manual entries including such things as completion status, approvals, documentation and support in a systematic way ensures better control. ThinkNet’s web-based Manual Journal Entry (“MJE”) tool does just that -- in real-time.

Issue 6: Process Automation & Workflow

Bogged-down by manual processes?  Could your team be more effective if they spent less time performing manual tasks?  There are cost-effective technologies that allow teams to function better and automate many common tasks.  Often organizations do not realize that the implementation of standard Microsoft Office technology can reduce log jams in process and team work.  Solving manual process issues may be as simple as deploying and correctly implementing technology you may already own.

Issue 7: Revenue Recognition

Do you have SOP 97-2 and SAB 104 woes?  The SOP and SABs are complex guidelines. 

It is difficult enough to interpret their impact on your business for any given contract, let alone to apply the same interpretation consistently and repeatedly throughout your organization.  ThinkNet can show you how to leverage knowledge management technology to tackle these issues and improve your revenue recognition process.

Issue 8: Forensic Investigation

Getting to the bottom of unusual activity isn’t easy.  Today’s computerized systems are large and complex.  Data that seems out of the ordinary may be a result of faulty systems, manual processes, or fraudulent activity.  ThinkNet has deep experience in investigating systems to determine underlying causes of unusual activity.  We also have very strong ties to some of the world’s best forensic auditors and have worked seamlessly with many of them in the investigation of complex systems.