One of the most time-consuming activities performed in the Finance function involves the processing, categorisation and cost allocations of expenditure items. In a larger department this is a regular process requiring dedicated staff, and increases in intensity at period end, when it can often absorb additional resource.
The key objective of this process for the business is a fair and correct distribution of expense allocations for each business unit, so that true costs may be recorded and profitability accurately assessed. It is also important to be able to compare actual expense allocations with budgeted values, on a monthly and year-to-date basis, in order to spot issues and trends early and to support efficient cost control.
Yet most Finance functions use manual processes for expense allocation, with heavy resource, cost and time implications. It can be a challenge for cost allocations to be managed in a timely manner, generating backlogs which mount up to make Quarter and Year End activity even more stressful.
Business Unit Managers add their requirements to the issue, as they demand timely and accurate management information, so that they can improve visibility of outgoing costs and meet their challenging targets.
Tighter regulation introduced in 2015 dictating a maximum spend on corporate entertainment per individual/client within financial services has created new impetus to track and report on expenses. This level of monitoring places a new burden on the finance department to track cost allocations more effectively.
Akin to crafting a challenging and complicated mosaic, there must be a better way to make this intricate area of cost allocations more efficient, and to reduce the resources it consumes.
Accountagility has the answer. ORYX Expenses. For all your cost allocations.
STREAMLINE YOUR EXPENSES
ORYX Expense cost allocations automates an area that is often based on highly manual processes, with valuable resources being devoted to this painstaking and detailed work.
It is a complete cost allocation software solution for the areas of expense allocation, accruals, exception handling, vendor analysis and management information summaries, whilst providing support for regulatory requirements through the automation of transfer pricing.
You can substantially mitigate the potential for coding errors, and at the same time satisfy audit requirements and support regulatory needs.
You no longer need to burn the midnight oil. You can improve staff conditions and morale, reduce overtime costs, whilst eliminating errors and improving accuracy of your expense allocations. You can release time to perform other regulatory and reporting processes, so that the information is produced flawlessly.
SPEED UP EXPENSE PROCESSING
Our expense allocation module addresses a particular thorny area within the Finance function through the central control and automation of a thoroughly manual set of processes. The result is substantially reduced effort to process expenses and a shorter time cycle required to handle them. Clients report reduction in effort of up to 80% and shortening of elapsed processing time of up to 50%. This means that the accounts are more detailed and timely and the P&Ls are more accurate.
EXCEPTION TRACKING AND GOVERNANCE
Our cost allocations tool incorporates a workflow that simplifies the logging, tracking and resolution of expense exceptions, with actions and sign-offs being recorded for governance best practice. Signatories can either approve workflows within the regular process, or revert back with comments for further amendment, saving time on the approval processes. This saves time right the way through the exception handling cycle. Not just simple, but automated, documented and above all, common sense.
SUPPORT FOR REGULATORY REQUIREMENTS
The introduction of the Solvency II regulatory regime on 1st January 2016 placed a renewed spotlight on improving the visibility and accuracy of all expenditure items. The need for higher degrees of probability (99.5%) intensifies the need for speed and accuracy in both the allocation and valuation of expenses. ORYX Expense allocations supports the Pillar 3 transparency mandate by offering flexible rules that can be applied to aspects such as transfer pricing.
Once established, each rule is repeatable into future periods, for further efficiency and consistency. With Accountagility’s expenses allocations, you can reduce the burden of reporting and ensure accuracy of compliance, without having to add additional resources to your team.
VENDOR ANALYSIS AND CONTROL
Our cost allocation software allows the full analysis and reporting on vendor expenditures, consolidated at all levels up to Group as required. There are two key benefits to the business from such information:
- A full understanding and views of exposure to individual vendors or vendor groups.
- The facility to control cost heads with your larger vendors to allow fuller exploitation of economies of scale.
Thus you can gain superior understanding of business risk whilst being able to control and reduce costs.
ORYX Expenses for cost allocations produces an information cube from which you can simply produce expenses reports and analyses, in the form of output documents or spreadsheets.
You will be provided with a set of insightful standard reports for you and your management colleagues to study. Apart for the standard set of reports, which you can easily tailor, you also create your own set of customised reports and outputs from the cube views, and automate them for future periods. Use our automated commentary tools to annotate your numbers, or even upload your workings. Our cost allocations analysis tool provides full management account-to-transaction drilldown as standard.