This article will focus on how Financial Reporting for Banks has changed overtime to be more forward looking.
Tell me what happened: When I first started out as an Accounting Manager for a large regional bank, my job was to create monthly financials for each branch and tell them what they did last month. Payroll, loan, and deposit information were already at the branch level in the general ledger; but not much else.
To improve the Financial Reporting for the bank, my job was to allocate all the other costs such as rent, FDIC insurance, funds transfer pricing, loan charge offs, and more to the branches. This process took a team of five people a minimum of three weeks each month to accomplish.
Once everything was posted to the general ledger, my team would dump everything into a huge Microsoft Access database. We then wrote a macro that would step through all four-hundred branches to create Excel workbooks on a hard drive. Once created, we would print every report and send through interoffice mail.
By the time the branch network received their reports and started asking questions, we were already on the next month’s cycle. Branches were always asking what happened and never got timely information to take corrective action. It was just an endless cycle of number crunching and tree cutting.
Let’s speed things up: