Financial Consolidation and Reporting Made Easy
Financial consolidation and reporting can be excessively complex or rather straightforward, but the overriding consensus amongst successful companies is that the main goal is fast, efficient and accurate closing.
The above said, many companies struggle with the process because they face challenges such as:
- Foreign exchange translations using different rates (average, month-end, historical) and multiple currencies that all need to be translated into a common reporting currency.
- Intercompany matching, which is cumbersome to reconcile across a group of companies.
- Multiple or non-standard charts of accounts in the underlying subsidiaries that need to be mapped onto a common chart.
- Reporting to different stakeholders and each of these have different reporting needs which need to be catered for, such as executive management, in-country requirements, non-financial managers, shareholders and banks, including both technical and non-technical key players.
Their problem is that they still use Excel spreadsheets, which were never meant for complex financial consolidation and reporting. The spaghetti spreadsheet is riddled with problems, such as breaks in formulas and links, version control, manual manipulation that doesn’t agree with the source, and the time it takes to make changes for new requirements.
In addition, the files can become too large and over 87% of spreadsheets contain errors. Add to the above, the lack of audit trails on how the consolidation has been accomplished, and you can see why it is necessary to migrate to a modern solution.
Even after working many late nights to get the numbers to balance, sometimes there are still errors and issues that only come out during board meetings.
Our solution addresses all the above problems. It automates the financial consolidation with foreign currency translations, intercompany transactions, provides standardisation across different legal entities without moving onto a common ERP system, and it speeds up the group reporting process to reach reporting deadlines
Our financial consolidation and reporting solution:
- Provides a complete audit trail of the consolidation process.
- Allows for standardised reporting across different entities.
- Offers the ability to do “What-if” analyses: M&A synergies, group capitalisation and international transfer pricing.
- Makes the group reporting process more sustainable and repeatable.
- Eliminates and reduces the risk of errors.
- Reduces the auditors’ time and cost.
- Creates the ability to test new company structures in a simulation mode to see the effects of strategic M&A activity before it happens.
- Empowers business users to maintain and enhance their functions with very little IT support.
- Enables enterprise budgeting, forecasting and integrated planning, including revenue planning, Capex planning, workforce planning and more.
Get rid of the spaghetti spreadsheet problems. Choose a tool that allows for accurate, fast and flexible financial consolidation and reporting.