Planning, budgeting and reporting isn’t the only function in finance that can be automated and consequently simplified by software solutions. Financial consolidation can also be optimized with the right software tool. Until now, creating consolidated financial statements and the associated tasks have monopolized valuable time and resources. Let’s take a closer look at how a modern solution facilities financial consolidation.
Consolidated Financial Statements: “The same procedure as every year”
The goal of every company’s finance department is to get a unified view of the company’s performance, which is a tedious and time-consuming process. For example, subsidiaries, subgroups, joint ventures and associated companies require very different methods of consolidation. Intra-group transactions, mergers, currency conversions or acquisitions further increase the complexity.
Manual processes and inefficient structures involve many hours of work to produce consolidated financial statements that meet international reporting requirements as well as the needs of internal stakeholders. A modern software solution can reduce complexity and automate many steps in group consolidation.
Advantages of software-based consolidation
A modern software solution for financial consolidation offers decisive advantages:
- Acceleration of reporting:
First and foremost, it saves enormous amounts of time by accelerating financial reporting through efficient and automated data capture and consolidation processes. In addition, the automated process reduces risk and minimizes errors – resulting in consistent, accurate, and fast financial reporting.
- Compliance with internal and external reporting requirements:
A software solution can support compliance with multiple external reporting standards by providing configurations to meet the requirements of multiple international standards. It is also easier to meet internal reporting requirements: A software solution help provide more detailed insight into company performance and also offers quick and easy customization of reports for internal purposes.
- Increased transparency:
Audit logs and a high level of transparency make it easier for the finance team to review and understand data and calculations. In general, this results in better collaboration between those responsible and those who ensure compliance, plus complex, time-consuming work steps can be significantly reduced.
The basis for well-founded, strategic decisions
Financial consolidation is the basis for preparing financial statements that conform to numerous standards. Software solutions for financial consolidation not only help handle the complexity of the many requirements, they also automate a large part of the processes: Data is prepared in a structured and transparent manner, standardized and adapted accordingly to create polished financial consolidation statements.
Done right, an integrated and networked planning and consolidation process enables sound, strategic decisions within the group. Detailed, up-to-date financial analysis forms the basis for sustainable planning and successful enterprise performance management.