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Join us on this exciting episode of the Count Me In Podcast, where Adam Larson sits down with Mike Dion, an expert in FP&A and automation. Mike shares his fascinating journey from finance intern to automation advocate, revealing the transformative power of streamlining processes. Get ready to learn how simple tools like Excel can save hours in your workweek, and discover actionable insights on balancing work-life with smart automation. Whether you're a finance pro or just love a good productivity hack, Mike’s insights are a game-changer. Tune in for practical tips, engaging stories, and a fresh perspective on working smarter, not harder

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FULL EPISODE TRANSCRIPT

Mitch: (00:03)

Welcome to Count Me In, IMA's podcast about all things affecting the accounting and finance world. Mitch Roshong and Adam Larson here with you again and today we are going to hear all about how blockchain works and how it applies to accounting. Now, Adam, can you give us a little more background on the topic?

Adam: (00:17)

Yes, thanks Mitch. Some of the biggest curiosities and ongoing questions in accounting revolve around blockchain. To get some insight on the topic, I asked Dr. Ariel Markelevich to help us answer a couple of the most common questions. Dr. Markelevich is an associate professor of accounting at Suffolk university. He has written a number of articles for academic and professional journals and has presented much of his work. I think you're going to learn a lot about blockchain. I certainly did. So let's take a listen.

Adam: (00:52)

What is blockchain? And do accountants really need to care about it?

Ariel: (00:56)

Thank you. That's a great question. So many people have heard about blockchain, and I'm guessing that many people don't really know what block chain is. So block chain is essentially a technology. So when you think about blockchain, you typically think about a list of individual records. So, many talk about the ledger or a distributed ledger. In essence, it's a list of individual records. Now the records can contain any type of information. So when you think about blockchain in the context of accounting, it could be transactions. When you think about a blockchain in the context of Bitcoin, it again could be transactions between individuals. Now what is unique about blockchain is that it forms a chain by the name. You can get that. So there are the key thing to understand is that there are many types of books and systems. The basic process in a blockchain system is that each record would include some information. As I said, for example, a transaction and it would contain a digital signature for each of the parties. Now the records, before added to the chain, they're checked and they're approved. We'll talk a little later about different ways to prove the records, but in essence, they need to be checked and approved before they're added to the system. Once they're approved, they're record is added to a block and then the blocks are in essence linked to each other and create the chain and we get the block chain. Now there are other common characteristics of blockchain. One of them is that it uses group cryptography. So instead of just having the information there we go through a crypto process to create what's called the hash, which essentially is a list of digits and letters that represent, in essence, the record, you can also think about it is the key to the record. Now the hashes connect the records and the blocks together in a specific order. If you were to make any change to the record, that would cause the hash to change as well. And hence you would know that there was a change in the record now because the next block contains still the old hashes. If you wanted to hack and change a potential record in the system, you would need to change all the subsequent records. Because again, all of them contain the previous hashes for the previous records. And that makes it hard, which is one of the key advantages or interests in blockchain. A key thing to understand is that blockchain is not Bitcoin. So many have heard about Bitcoin, which is a cryptocurrency. I'm guessing that some of you are sad that they didn't buy Bitcoin years ago. But anyway, Bitcoin uses blockchain. Blockchain's was introduced when Bitcoin was introduced, but the two are different. So the way Bitcoin uses blockchain is just a specific use for blockchain. And in many cases, when you think about blockchain, blockchain could be converted or used in a variety of different situation and variety of different settings and not just the one that Bitcoin is using. So for example, the Bitcoin use of blockchain is what's called a decentralized or a Galatarian network. The basic idea there is that there's nobody in charge of the system. There are many users within the Bitcoin blockchain system. All those users or nodes, sometimes that's the technical term, but again, no central authority. You don't need to get approval from anybody to join the system. In the Bitcoin network. The members are kept anonymous. Now I'm saying all this because you need to think about blockchain for potential business uses. And for example, you may not want to keep the blockchain system decentralized or egalitarian. You may not want to keep the members anonymous, but the fact that Bitcoin is using it that way doesn't mean that all blockchain applications would be the same. Another characteristic of the blockchain use in Bitcoin is the fact that...

Contact Ramesh: https://www.linkedin.com/in/ramesh-shettigar-9ba1243/

FULL EPISODE TRANSCRIPT
Adam: (00:00)
Hey everyone and welcome to Episode 121 of Count Me In, IMA's podcast about all things affecting the accounting and finance world. I'm your host Adam Larson, and I'm pleased to introduce you to today's featured guest, Ramesh Shettigar. Ramesh is Vice President of Investor Relations and Corporate Treasurer at Glatfelter, a leading global supplier of engineered materials. He joined my co-host Mitch to talk about ESG and its importance across the organization. Keep listening to hear about the finance team's role in ESG, prioritizing ESG over return objectives, and strategies to make ESG truly sustainable.
Mitch: (00:47)
So in your perspective, how have recent events increased the importance of ESG in business? And obviously for our listeners, we would like to get your perspective, particularly for the finance function.
Ramesh: (01:00)
Sure Mitch, I'm assuming by recent events you're referring to the pandemic, climate issues, social injustice, and corporate governance matters we've seen play out in 2020. If so I think companies play a very important role in representing to employees and their communities where they stand on these topics. The pandemic for example, has highlighted the importance of ensuring the health and safety of our employees and the communities where we operate. With regard to climate, corporations I think need to be responsible stewards of the environment in the geographies where they operate and need to abide by all local and federal environmental standards so that we can all preserve humanity's long-term health and sustainability for generations to come. We're seeing this play out in broader mega trends. For example, this move from fossil fuels and toward alternative energy sources or the plastics free movement. Working for an engineered materials company like Glatfelter, I feel incredibly proud that we have focused heavily on natural and bio-based feedstocks in our manufacturing process and our product innovation efforts are heavily focused on minimizing synthetic materials in the products we make. As it relates to social topics, employees need to know where their employers stand regarding racial, gender, and socioeconomic disparities in the workplace and if their companies are playing an active role in facilitating an environment that welcomes diversity, equity, and inclusion. Glatfelter for example, has made it very clear through an internal message from our CEO that treating people of all backgrounds fairly and consistent with our core values of mutual respect, integrity, and social responsibility is of utmost importance. We have committed to enhancing compliance training that focuses on diversity and eliminating unconscious biases. Also a meaningful portion of corporate giving will go towards causes that address social inequities and racial injustice. From a governance standpoint, I think ensuring that there is adequate board diversity in terms of experience, gender, and race is very important for investors seeking reassurance that company leadership exemplifies and values diversity. So bringing all this back to the finance question, which I think you're trying to get to, I think the long-term returns of these initiatives and the stand we take regarding ESG will ultimately be positive and rewarding for the company, its employees, and society. So I think that's how we think about what ESG does for us, particularly for the finance function.
Mitch: (03:56)
That really was beautifully said and thank you for taking us through step-by-step, I think it was a perfect response. Its great to hear those kinds of initiatives put in place and you know, your organization really taking a big step forward in making sure that everybody within the organization is on the same page. I think that clear communication is vital for making sure these ESG initiatives are effective, really is what it comes down to. And you talked about the finance function, the long-term returns. I think it's been a year now with this pandemic that you brought up and obviously there is a little bit of a light at the end of the tunnel. I think some people are starting to see it as businesses seek to return to their normal and that obviously has a different definition than it did a year from today. But how do you prioritize ESG in relation to these return objectives that you mentioned within finance?
Ramesh: (04:53)
Sure. So you know, the pandemic has clearly appended organizational priorities when it comes to ESG and I think you said it well, right? We've we see the light at the end of the tunnel. We've been through this pandemic now for a year, organizations have flexed and adapted to the marketplace and what the pandemic has brought about. But if anyth...

Welcome to the Count Me In podcast with your host Adam Larson and special guest Dan DeGolier! In this episode, Adam and Dan, founder and CEO of Ascent CFO Solutions, dive into the fascinating world of AI and its application in the finance and accounting sectors. Discover how AI is enhancing efficiency and reducing errors, while also exploring the potential challenges and ethical considerations it presents. Join us as we explore the evolving landscape of AI in fractional leadership. Tune in now for an engaging discussion you won't want to miss!

Full Episode Transcript:

Adam: Welcome back for another exciting episode of Count Me In. I'm your host, Adam Larson, and today we have a special guest joining us, Dan DeGolier. The founder and CEO of Ascent CFO Solutions. We start off by exploring current use cases of AI in the industry. Such as coding transactions and streamlining forecasting processes.

But as Dan points out, we're only scratching the surface of what AI can do. The potential for growth and efficiency is immense. But it's important to proceed with caution and be aware of the biases and ethical considerations that come along with it.

Throughout this episode we highlight the evolving role of finance and accounting professionals, in the age of AI, and how they can adapt to leverage its benefits. From bookkeepers, to CFOs, to fractional CFOs, AI has the power to enhance efficiency and transform the way we approach financial management. So grab your headphones, and join us as we uncover the exciting world of AI in accounting. Let's dive in.

< Music >

Well, Dan, we're so excited to have you on the podcast today, as we're going to talk about AI and fractional leadership. And just to get started, as we think about AI, how is it currently being applied to finance and accounting sectors? Obviously, it does things like enhance efficiency and reduce errors, but how is it being applied in those areas?

Dan: Yes, thanks for having me on, Adam. It's a pleasure to meet you, pleasure to be here. I think we're just getting started, for one thing. AI, even though it's been around for a while, ChatGPT, GPT 4, and all those things, are relatively new to the mainstream. And, so, a lot of this stuff we're just starting to figure out right now.

Definitely, in the accounting side, we're starting to see some use cases for coding transactions and things like that. I think there are a lot of opportunities in our world, in the finance realm. When it comes to forecasting, to be able to streamline multiple scenarios and make iterations to financial models and forecasts.

I think that's an area that we're starting to see develop. And, then, things like pricing strategy and looking at different ways to price and run different scenarios around that. Using large language models, and data, and being able to bring in data and run multiple scenarios and see what things look like there. I think those are all some areas that we're starting to see.

But, honestly, because it's so early, what is really going to be the biggest use cases, two years from now, is probably something we haven't thought of. Or somebody's thought of but hasn't really been implemented, yet.

Adam: Yes, that's a great point, that we're so early in the generative AI phase that some organizations are adapting quickly, other ones aren't. And software companies are trying to integrate it into there but it's still in the early phases. So our traditional role-

Dan: And it's still prone to errors as well.

Adam: Exactly.

Dan: Yes, we've all read the articles about the lawyer who tried to use it for briefs and got in huge trouble, and the hallucinations are still rampant. So I think proceed with caution, but recognize that it has enormous potential and don't be left behind.

I was going to say, I've heard that it's been compared to if you look at Web 1.0, the emergence of the Internet, and commercial use, that this could be a 10x-type of opportunity. From a growth potential, from an efficiency potential, et cetera, it's just fascinating to me, just how massive this could be, and how life-changing this is.

Adam: Well, and also the bias that's implicit in there, in the AI. Because there are so many biases among how people think, wording, that's out there in the Internet and how it's learning. There's going to be that bias that you have to get over as well. Because it's going to be embedded in there because of how it is societally.

Dan: Correct, yes, I agree with that. I think one other ethical consideration that needs to be taken into account, when you're implementing AI, is things around copyr...

FULL EPISODE TRANSCRIPT

Music: (00:00)

Adam: (00:05)

Hey everyone. Welcome back to Count Me In. Thanks for coming back and listening to some new accounting and finance perspectives. If you're enjoying these learnings and don't want to miss out on future episodes, please be sure to subscribe, download, rate, and review. Now this week our episode puts a slight twist on some of the recent conversations we've had as we begin to talk about using data analytics for fraud prevention. Mitch, not many people better to talk to about fraud and forensics and accounting than Danielle Supkis Cheek. What kind of insight did she have to offer?

Mitch: (00:35)

Well, as you said, many of our recent episodes have talked about the data transformation happening in accounting, but today's conversation is going to cover how to build a data analytics program for fraud prevention. Danielle is a director at PKF Texas and served as a part time faculty member at Rice University in the Jones graduate school of business. She is a certified public accountant, certified fraud examiner and a certified valuation analyst as she also serves as the chair for the PCPS technical issues committee with AICPA. Five times she was named to the 40 under 40 by the CPA practice advisor and she was recognized four times as one of the most powerful women in accounting by CPA practice advisor and AICPA. Danielle is a true accounting expert and covers a number of topics relating to analytics and fraud for us. So let's start the conversation.

Music: (01:37)

Mitch: (01:39) Data analytics has been a hot topic in accounting, but are companies jumping into data analytics too quickly? In your opinion, what should they be aware of and make sure they do first?

Danielle: (01:45)

I actually think it's the opposite. I don't think they're jumping in fast enough. You know, you can actually do a data analytics program fairly cheaply and honest. So if you overly invest on the front end before you really understand what you have, it's going to be a very costly process and you have a risk of a lot of sub costs. So I actually think people should take a, you know, a page out of the agile project management methodology and kinda jump first, figure out what they have and then start fine tuning as well as there's actually a fair amount of learning about your data. As you start getting into a program and since the software has become so cheap, it's usually a fairly easy initial investment to figure out what you have.

Mitch: (02:28)

So then how do you begin even thinking about what needs to go into this program? How do you build an efficient data analytics program?

Danielle: (02:37)

I would say you kind of started a couple of different places. One, of course you have to inventory your data and figure out what you have. Sometimes you know, it's just a matter of, let's see if I can get an export out of my system just so I can start seeing what the data is. Clearly, if you have access to a data dictionary, which is kind of a summary of all the different fields of data behind the system and what it actually means, that's really, I mean best practice and really helpful. It saves a lot of heartache and grief, but a lot of times it's inventory. What you have, you know, sometimes it's as simple as let's start in Excel, let's move on to some of the bigger packages. You know, these days Tableau is so relatively cheap. Power BI is coming with your 365 implementation. So you can start doing a visual exploration of your data and seeing what you have and starting to focus on what are the areas that you think you have risks and really fine tuning it to your risk of your business.

Mitch: (03:30)

Well, let's talk about that risk a little bit more now. I know you've referenced in previous conversations with me something about a fraud tree and some of the common risks that you can help identify around your business. So what are some of the examples of fraud that you've seen that maybe, you know, could have been prevented or avoided if there was an effective data analytics program in place?

Danielle: (03:51)

Yeah, so the risks of your business really do come with whatever is your industry as well as how you operate. And a lot of companies have a hard time identifying particularly fraud risks of you know, it could never happen to me. And the cost of fraud is so high. So what you end up doing is you can use the association of certified fraud examiners, fraud classification tree. And what they do is they take three major classes of fraud, which is the fraudulent financial statements, so just fudging the numbers in effect, a misappropriation of assets. That's kind of all y...