FinanceJuly 29, 2021

Evolve Now: BGC's experience

Learn how BGC automate and streamline finance processes for statutory, management and performance reporting for a large complex group.

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My name is Mike Allan, I'm General Manager of Finance for the BGC group.I'm responsible for management and statutory reporting along with the tax treasury credit and insurance functions. BGC operates inboth the commercial and residential construction sectors in Western Australia (WA). BCG is WA's largest homebuilder. It's also a vertically-integrated groupand produces and supplies cement, concrete bricks and building products. Len Buckeridge was the founder of BGC more than50 years ago and it's grown to be one of Australia's largest private groups and most trusted and well-known brands. Prior to the government stimulusthe WA residential construction industry has been in decline and in fact it was at 30-year lows in terms of residential approvals. 

So like any builder in WA, BGC has had to review all its businesses and particularly in terms of managing its costsand its operating margins. BGC is a large corporate structure with nearly 50 legal entities in the structure. Up to 2018 werelied on Excel to consolidate those entities and as you can imagine that did offer some challenges in terms of timeliness and also accuracy.BGC chose CCH Tagetik for three key reasons. The first one was as a fit-for-purpose reporting tool which was absolutely key. We knew that CCH Tagetikwas a tried and tested consolidation tool, but more importantly that we really wanted to be able to slice and dice our data for management reporting purposesand so that was key. Secondly, from the costs side of things, we felt that it was competitive both in terms of implementation, but also,going forward, licensing costs. And third and finally, we also believe that we get good technical support from bothCCH Tagetik and CFO Group here in Australia.

BGC uses the consolidations process for both statutory and management reporting. With the implementationof CCH Tagetik the one big achievement has been to achieve a centralized "one version of the truth" for both operational and safety dataalong with physical volumes. Prior to implementation we had multiple systems and processes and as a result we didn't have a lot of confidencearound the integrity of our reporting. One of the areas of reporting that did cause a lot of angst for our business unit accountants particularly was in terms of confirminginter-company loan balances.

With the implementation of CCH Tagetik we can now have an automated online process for confirming those balances,and I have to say the feedback from the business unit accountants has been really, really positive.Throughout this process we have chosen to take a staged approach to implementing modules within CCH Tagetik. The most recent module that we've implemented is the IFRS 16leasing module, just by virtue of our large car fleet. I do think the role of finance functions has evolved over the yearsand particularly in terms of how finance professionals partner with the business to facilitate optimal decision making.

So, moreover, I thinkBGC has been on a journey and it continues to be on a journey in terms of challenging the status quo and optimizing our businesses.I think understanding the business drivers through a time of change is really important but it's also pretty cool to have an accounting systemsupporting you that can actually ride that change. We believe that we've got a system in CCH Tagetik that can deliver on those challenges. CCH Tagetik has helped BGC automate and streamline its processes for both management and statutory reporting in what is a large, complex group.
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