An Accounting Process Model (APM) integrates the business and accounting views.
Based on the SIPOC process modeling notation, an APM can be defined from source to destination by business event or transaction as input trigger to the accounting process engine for generating G/L account postings to the General Ledger linked to the respective processes.
Process-oriented accounting provides a new perspective with further insights to value creation and its financial impact to all stakeholders and can improve planning and controlling as well as compliance and auditing processes with an implicit audit trail. A lack of integration between business processes and accounting is often the cause for inconsistencies, information gaps and overlaps.
An Accounting Process Model as proposed will also improve accountability and SOX compliance in a novel way (e.g. beyond accounts risk mapping) for better transparency and control by all stakeholders.
The ProcessHorizon web app supports the smart design of an integrated Accounting Process Model which is instantly visualized as an end-to-end Process Map and stored in a repository for documentation as well as for standard and ad-hoc reporting.
Incidentally, it’s great fun to see the visual Process Map being generated on the fly from your business process model or APM input and the process navigation bar will keep you on track.
ProcessHorizon is sophisticated simplicity put in practice by you.