Financial consolidation is more than just adding numbers. It’s a critical but complex process. Specific calculations and adjustments are required for accuracy within the various methods of consolidation. While it’s a routine process, it can take valuable time and resources unless your organization stream-lines the financial close and consolidation.
Your current system may rely on spreadsheets, manual input, or other methods. Unfortunately, spreadsheets and other traditional methods are prone to errors and leave poor trails for potential audits. However, there are purpose-built, end-to-end solutions to automate the previously error-prone processes, offering more time for regular business operations.
What Can You Automate in Financial Close and Consolidations?
You can automate and streamline many aspects of the financial close and consolidations process. For example, it is easy to automate data collection and data input for a more accurate, efficient close and consolidation. Better yet, processes like data input and calculations for consolidation can hap-pen in real- time versus a drawn-out batch approach.
As financial information enters your streamlined close and consolidations system, it analyzes and consolidates the data as soon as it is available. If new trends or red flags show up, the system can alert your organization immediately as it is happening, so there are no surprises. Reports are also automated through this system based on real-time data.
Extending Financial Close and Consolidation with Analytics and Reporting
Because an automated financial close and consolidation system collects data as it is introduced, it’s a great planning tool. With less time spent consolidating and validating this information, your organi-zation can monitor the information more effectively. Decision-makers can evaluate for performance indicators to plan business decisions based on these numbers.
Like financial consolidation, business planning also happens in real-time with a streamlined process. Your company will no longer be reacting to issues that come up at the end of a batch job or long-running process. Instead, the numbers are available with built-in analytics and business intelligence for swift decisions.
Financial Close and Consolidation Transparency and Accountability
The integrity of your data and reporting shines through if your organization undergoes an audit. Ac-countability is built into the system thanks to it’s workflows and detailed audit trails. You can easily review and track how data flows through the entire process and know who is involved. Your organiza-tion will also stay in compliance with regulations. This is especially the case with a system that allows for multiple accounting standards.
By using technology to streamline your financial close and consolidations process, your organization will save hours of wasted time every month. At Strategic iQ, we help our clients to transform their business operations with proven project management methodologies, effective management tech-niques and the expertise to streamline all of your company’s operations to bring your actionable goals to fruition. Our solutions are tailor-made for all CFOs, as we leverage our combined industry experience, deep knowledge, and technical expertise. Please contact us, we look forward to speaking with you to learn how we can help you be even more successful in 2021.