Tableau Software program, which has been an entirely owned subsidiary of Salesforce since August 2019, is aware of the way to make knowledge straightforward to understand. Tens of 1000’s of companies world wide use Tableau dashboards to make sense of their monetary knowledge. Nonetheless, a number of years in the past, the Tableau treasury workforce struggled to see their very own world money balances and transactions.
“Each day, the controllership would log into numerous on-line banking portals and generate statements for yesterday’s exercise,” says Ed Barrie, senior director of treasury. “They might use these statements for guide accounting and reconciliation processes, whereas the money utility workforce was manually posting and clearing money receipts in opposition to open buyer invoices. We had dozens of financial institution accounts throughout a number of totally different banks, so this strategy was fairly inefficient. As well as, the truth that they had been at all times using yesterday’s assertion meant liquidity and accounting actions had been working on a one-day lag.”
The opacity of company treasury knowledge led to vital enterprise challenges. “Day by day world visibility into all financial institution and funding account balances and transactions is a elementary requirement for any company,” Barrie says. “Something much less leads to a suboptimal understanding of the place your money is and the place it must be. That may be a drawback not just for money positioning, but in addition for forecasting.”
When he joined Tableau in 2015, considered one of his first priorities was to start consolidating and standardizing treasury-related knowledge. First, Barrie established SWIFT connectivity. “I had beforehand been concerned in two different company SWIFT implementations, so I knew we might stand that up fairly shortly and effectively with our banking companions,” Barrie says.
Tableau didn’t have a treasury administration system and didn’t intend to implement one. The treasury group had a imaginative and prescient of a complete respository of treasury knowledge. They needed higher integration with their enterprise useful resource planning (ERP) and different methods than commercially accessible treasury administration methods had been providing on the time. Additionally they needed to take full benefit of their impending SWIFT Alliance Lite2 connectivity, by way of which financial institution assertion knowledge would move into the group in CAMT.053 or BAI2 formatting.
“We had been going to be getting ISO 20022 XML financial institution statements,” Barrie explains. “We noticed the potential to seize this enriched knowledge on the transaction stage. We additionally needed to make use of the ERP system to generate ISO XML fee information that would come with our fee message, transaction particulars, and remittance knowledge. Offering the financial institution with the information we needed to get again would make our financial institution statements simpler. The treasury administration methods we checked out weren’t absolutely supporting the ISO XML format in these methods.”
As a substitute of deploying a industrial answer, the treasury group determined to construct one internally. They labored with the corporate’s finance analytics workforce to arrange a cloud-based knowledge repository they referred to as the “monetary grasp knowledge warehouse.” The Alliance Lite2 connection started routinely populating ‘monetary grasp’ with financial institution assertion info every day. Tableau’s finance analytics workforce additionally arrange a mechanism for importing knowledge from their buyer relationship administration (CRM) and enterprise useful resource planning (ERP) methods. Then they put in Tableau software program on the entrance finish to make the ‘monetary grasp’ knowledge simply accessible to licensed finish customers.
“Our use of Tableau enabled treasury and finance employees to construct no matter analytics they wanted,” Barrie says. The brand new system, which revolved across the ‘monetary grasp’ repository of consolidated treasury knowledge, enabled customers to search for tendencies in every kind of economic transactions, from buy orders to vendor invoices to expense reimbursement.
The following step within the system’s evolution was to counterpoint the information to make it much more helpful. “Most treasury administration methods have categorization or tagging guidelines,” Barrie says. “A transaction is labeled with its checking account, with a transaction code, and with narrative textual content. We did one thing related in ‘monetary grasp.’ Instead of transaction codes, we created a taxonomy of money move varieties and sub-types to boost our reporting and evaluation.”
A transaction may be labeled accounts payable (A/P) or accounts receivable (A/R), international trade (FX), tax, payroll, intercompany fee, or quite a lot of different choices. “We now have round 15 varieties after which a myriad of sub-types,” Barrie explains. “So, for instance, a tax transaction may be assigned a money move sub-type for fee to a particular U.S. state, or it may be a VAT [value-added tax] if it’s worldwide, or it may be categorized as a tax refund.”
Barrie’s workforce developed guidelines by which the information warehouse might routinely assign transactions to particular money move varieties and sub-types. One good thing about the detailed categorization was that it helped the accounting workforce guarantee transactions had been posted to the correct basic ledger (G/L) account.
“Issues like financial institution charges, credit score curiosity, debit curiosity, ZBA [zero-balance account] transfers between accounts—sorts of transactions which don’t exist natively in an A/P or A/R subledger system—had been labeled in our knowledge warehouse,” Barrie says. “Categorizing transactions all the way down to that stage gave us nice visibility to know our money flows and what occurred in a given month. From there, we might evaluate actuals to forecast and use the insights from that evaluation as we ready the subsequent forecast.”
The system offered different, much less apparent advantages as effectively. “This undertaking additionally introduced all people collectively to a standard understanding of our knowledge set,” Barrie provides. “So our money utility workforce that was recording A/R funds would see the identical knowledge because the forecasters and the controllership workforce and the auditors.”
As a result of they developed the information warehouse internally, the workforce was capable of construct further performance to help deep knowledge evaluation. Its money move evaluation dashboard made each checking account balances and historic money flows a lot faster and simpler to entry. A money utility dashboard dramatically improved the effectivity of making use of buyer funds to open invoices. The accounting workforce was capable of shut the books extra effectively at every period-end: Financial institution accounts had been assigned to a definite G/L account within the stability sheet which allowed for comparability of G/L exercise and balances with financial institution statements. Different sorts of knowledge comparisons had been additionally automated, producing alerts anytime transactions weren’t categorized and in circumstances the place transaction knowledge on the financial institution statements didn’t tie out to closing ledger balances.
“Extending the idea of the categorization guidelines, our dashboards offered totally different ranges of insights,” Barrie says. “For instance, we might have a look at every thing at a person checking account stage, or we might roll up a number of accounts to a subsidiary or authorized entity view. We might roll up every thing to a complete view by foreign money. We might see quantities in U.S. greenback equivalency utilizing the relevant FX charges from Tableau’s ERP system.”
The Salesforce acquisition of Tableau “modified our roadmap when it comes to treasury know-how,” Barrie says. “Nonetheless, our expertise with this undertaking helped foster a steady enchancment mentality all through our treasury workforce. We had been consistently taking a look at methods to enhance treasury processes, consistently constructing out new options and performance within the ‘monetary grasp’ system.
“In treasury, as elsewhere in life, you need to personal your future—you need to personal your consequence,” Barrie continues. “To completely leverage the know-how you may have at hand, you must periodically refresh your roadmap and modify your capabilities. Take a look at what’s altering within the business and in what you are promoting. Contemplate what questions you would like to reply and what knowledge you would wish to do this.”
In reality, Barrie attracts a parallel between this steady enchancment perspective towards know-how and the way forward for treasury careers. “Greatest-in-class treasury groups have gotten nearly a middle of excellence for analytics,” he concludes. “Treasury sits on the nexus of every thing that’s happening in a company, so treasury groups have a view of every thing that’s touching company money. They’ve entry to streams of knowledge from throughout the group that they should faucet with a view to perceive money flows. Treasury professionals who aren’t constantly bettering their monetary analytics abilities and leveraging knowledge are liable to being left behind.”
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