Data analytics, robotic processes automation, and artificial intelligence have all contributed to the acceleration of data generation. Having such large amounts of data have made many organizations constantly play catch up daily and it has made their financial reporting rather ineffective.
Providing relevant and insightful financial reports at record speed with zero errors remains to be a dream for most organizations.
There are a variety of reasons why there are so many hurdles towards effective financial reporting but above all, it is worth pointing out that the continued existence of legacy systems is one of the main problems.
With many companies constantly going through acquisitions, there are always unique systems that require integration and many of these systems cannot even be effectively integrated through a single platform which forces most companies to just report manually.
There are many global companies out there that choose to do away with reconciliations on specific balances just because it is too tedious and time-consuming to cross check data against various systems.
Needless to say, the complexity and high cost of tackling legacy IT systems remains a major obstacle towards a more automated and effective financial reporting.
What can be done?
It is no secret that CFOs want their analysts to spend less time fixing errors, broken links, and cross-checking information. They want more time for evaluation of new business models, spotting of trends, risks, and opportunities.
However, it is also no secret that the more complex the organization, the harder it is to generate reports and the longer time it needs to come up with good financial reports. You can have analysts working all night but when they come back in the morning, the information do not anymore match their GL. A lot of things can happen overnight. This is a constant struggle.
There is no doubt that financial reporting automation is a good solution to this problem. However, while there are hundreds of financial reporting solutions in the market today, not all technology is created equal and each one has its limits.
Organizational complexity makes financial reporting even harder than it already is which is why it is important to invest in a financial reporting solution that not only promises to tie all your technology investments together, it must above all, deliver on that promise.
Performance Canvas Financials for example is among those financial reporting solutions that is system agnostic which means it has the powerful capability of being able to integrate your ERP and line of business systems together regardless of which brand you are using.
More than just that, Performance Canvas Financials understands that in order to nail automated financial reporting, you must first be allowed to model your business into the system. Business modeling is at the heart of its deployment.
In order for financial reporting to truly catch up with data generation, the organization must adopt a financial reporting solution that will allow both streamlining and automation of the financial reporting process as well as integration of legacy systems. Only then can good, relevant, timely, and insightful financial reports be achieved.
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