Postlethwaite & Netterville, APAC December 5, 2019 Year-End CFO Seminar: Baton Rouge December 5, 2019 a s s u r a n c e - c o n s u l t i n g - t a x - t e c h n o l o g y - p n c p a . c o m Postlethwaite & Netterville, A Professional Accounting Corporation Data-Driven Finance Leader Krystal Pertuit and Karen Jones Penhallegon a s s u r a n c e - c o n s u l t i n g - t a x - t e c h n o l o g y - p n c p a . c o m Postlethwaite & Netterville, A Professional Accounting Corporation 1
Postlethwaite & Netterville, APAC December 5, 2019 Introductions 3 Agenda 4 2
Postlethwaite & Netterville, APAC December 5, 2019 The Reality of the Finance Leader Finance Leader Reality Board Finance Executive Team Team CFO Technology Customers 6 3
Postlethwaite & Netterville, APAC December 5, 2019 Finance Leaders Admit… The biggest challenges in creating a data- driven finance function 64% Say their finance function is not proactive enough in using data/analytics to identify, prioritize, and address critical issues in the business. Source: Argyle Executive Forum 7 Finance Leaders Know… 77% Say their organization requires a data-driven finance function to achieve its strategic and profitability improvement goals. 81% Say that over the next two years, the pressure on their finance function to become more data-driven will increase substantially. Source: Argyle Executive Forum 8 4
Postlethwaite & Netterville, APAC December 5, 2019 Finance Leaders Can Be… The report creation feature that are most important “Performing analytics against big data sets needs state-of-the-art database and analytics technology that runs close to the data in the cloud.” – Ian Howells, Head of Marketing, Sage Intacct Source: Argyle Executive Forum 9 Finance Leader Evolution 5
Postlethwaite & Netterville, APAC December 5, 2019 Finance Leadership 1.0 11 Finance Leadership 2.0 12 6
Postlethwaite & Netterville, APAC December 5, 2019 Finance Leadership 3.0 13 Evolving with Your Data 14 7
Postlethwaite & Netterville, APAC December 5, 2019 Evolving with Your Data America’s Favorite Pie? 15 Evolving with Your Data 16 8
Postlethwaite & Netterville, APAC December 5, 2019 Embracing Data Excellence 2000 BC 1500’s 1700’s 2000’s 2019 17 Finance Leadership 1.0 9
Postlethwaite & Netterville, APAC December 5, 2019 Chart of Accounts of the Past Acct – Loc – Dept – Project Account Title 4000 – 001 – 100 – 001 Revenue – Baton Rouge – Corporate – Project 001 4000 – 001 – 200 – 001 Revenue – New Orleans – Engineering – Project 001 4000 – 002 – 100 – 001 Revenue – Houston – Development – Project 001 4000 – 002 – 100 – 002 Revenue – Baton Rouge – Corporate – Project 002 19 Reporting of the Past 20 10
Postlethwaite & Netterville, APAC December 5, 2019 Reporting of the Past 21 Dimensional Accounting Natural Account 4000 Revenue Location Department Project Customer Employee 001 Baton Rouge 100 Corporate 001 C1000 E1100 002 New Orleans 200 Engineering 002 C2000 E1200 003 Houston 300 Development 003 C3000 E1300 400 Marketing 004 C4000 E1400 500 Sales 005 C5000 E1500 22 11
Postlethwaite & Netterville, APAC December 5, 2019 Capturing Dimensional Data 23 Finance Leadership 2.0 12
Postlethwaite & Netterville, APAC December 5, 2019 Bringing Relevance to Data • Income Statement • Balance Sheet • Financial Ratios AND… Non- Financial Financial data • Business specific Data metrics 25 Business Specific Metrics Strategy Metrics aligned w/strategy Business Objectives Strategy Map Value Drivers Operational measures Business Specific Metrics 26 13
Postlethwaite & Netterville, APAC December 5, 2019 Real Time Analysis Tools Financial Reports Ad hoc Reporting/Pivots One Source of the Truth Standard Reports Dashboards 27 Finance Leader Dashboard 28 14
Postlethwaite & Netterville, APAC December 5, 2019 Overall Net Income 29 By Location 30 15
Postlethwaite & Netterville, APAC December 5, 2019 By Department 31 Multi-Dimensional Analysis 32 16
Postlethwaite & Netterville, APAC December 5, 2019 Finance Leader Dashboard 33 Revenue by Customer 34 17
Postlethwaite & Netterville, APAC December 5, 2019 Revenue by Service 35 Business Metric Considerations Past Financial To succeed financially, how should we appear to our stakeholders? What is critical for our Financial shareholders? Non-financial Customer Internal Processes Current To achieve our vision, To satisfy our shareholders how should we appear to and customers, what our customers? How do business processes must customers perceive us? we excel at? Learning & Growth To achieve our vision, External how will we sustain our ability to change and Future improve? Internal 36 18
Postlethwaite & Netterville, APAC December 5, 2019 Finance Leadership 3.0 Data Never Sleeps Source: DOMO 38 19
Postlethwaite & Netterville, APAC December 5, 2019 It’s a New World 39 Envisioning the Future Source: Gartner Analytics Maturity Model 40 20
Postlethwaite & Netterville, APAC December 5, 2019 Does It Scale? Excel is the single most popular data analytics tool in the world. Is it the right tool for the job? Pros: • Inexpensive/Available • Easy to use for ad hoc research, filtering, quick calculations, and sorting • Savvy users can use formulas to perform complex calculations Cons: • Easy to make a costly error • Becomes overly complicated and unwieldly as business data increases in size and complexity • Security concerns and version control issues Graduating from Excel Data needs can quickly outgrow Excel. Where do we go from here? Acct Sales HR ETL Process Data Warehouse Data Marts 21
Postlethwaite & Netterville, APAC December 5, 2019 The Agile Method Process Start Dashboard Assessment Creation Dashboards/Reports Create Tabular Data Modeling Files Enterprise Data Enterprise Data Warehouse Warehouse Integrate Structure Additional Creation Business Logic Data Data Data Data Data Data Data Import Mart Mart Mart Mart Mart Mart 43 Be Agile Not Fragile Acting with boldness while others hesitate can create exceptional advantages 44 22
Postlethwaite & Netterville, APAC December 5, 2019 Are You Ready to be Data Driven? Past Financial Non-financial 45 A Professional Accounting Corporation 23
Postlethwaite & Netterville, APAC December 5, 2019 Federal Tax Update Brandon Lagarde, Director a s s u r a n c e - c o n s u l t i n g - t a x - t e c h n o l o g y - p n c p a . c o m Postlethwaite & Netterville, A Professional Accounting Corporation Overview 1. Tax Cut and Jobs Act Review and Update 2. Opportunity Zones 3. 2020 Candidates Tax Plans 24
Postlethwaite & Netterville, APAC December 5, 2019 TCJA: Lessons Learned 49 Pass-through Income - Expires 12/31/25 25
Postlethwaite & Netterville, APAC December 5, 2019 162A Trade or Business • Groetzinger v Comm: – “We accept the fact that to be engaged in a trade or business, the taxpayer must be involved in the activity with continuity and regularity and that the taxpayer's primary purpose for engaging in the activity must be for income or profit. A sporadic activity, a hobby, or an amusement diversion does not qualify.” 51 162A Trade or Business 52 26
Postlethwaite & Netterville, APAC December 5, 2019 Specified Service Trade or Businesses Accounting Methods-Small Business Exceptions 27
Postlethwaite & Netterville, APAC December 5, 2019 163(j)/Business Interest Expense Tax Shelter – Am I a Tax Shelter 28
Postlethwaite & Netterville, APAC December 5, 2019 Syndicate NOL Changes 29
Postlethwaite & Netterville, APAC December 5, 2019 Business Expensing/Bonus Depreciation 179 Business Expensing 30
Postlethwaite & Netterville, APAC December 5, 2019 Real Property Business Expensing Business Deductions 31
Postlethwaite & Netterville, APAC December 5, 2019 Important Figures - Individuals Deduction 2017 2018 2019 2020 Standard – Single 6,350 12,000 12,200 12,400 Standard – MFJ 13,000 24,000 24,400 24,800 Personal Exemption 4,050 0 0 0 401k 18,000 18,500 19,000 19,500 IRA 5,500 5,500 6,000 6,000 HSA ‐ Single 3,400 3,450 3,500 3,550 HSA ‐ Family 6,750 6,900 7,000 7,100 FICA Limit 127,200 128,400 132,900 137,700 Qualified Transportation Fringe Benefits 64 32
Postlethwaite & Netterville, APAC December 5, 2019 Opportunity Zones What are Opportunity Zones? https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx https://www.louisianaopportunityzones.com/ 66 33
Postlethwaite & Netterville, APAC December 5, 2019 How Does the Tax Incentive Work? 67 QOZ Investment Process Step 1: Step 2: Step 4: Step 3: Taxpayer Sells Taxpayer Invests Taxpayer files QOF Invests in Capital Assets at Gain into QOF Election to QOZ Property a Gain within 180 Days Defer Gain 68 34
Postlethwaite & Netterville, APAC December 5, 2019 Democratic Candidates Tax Plans Democratic Candidates Tax Plans: Joe Biden 35
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