With so many global markets expected to hit a recession by the end of the year, it’s no wonder why many organizations are starting to explore new ways to optimize their financial health better.
Here’s a look at how to improve the integrity of your balance sheets in 5 easy ways.
Eliminate Manual Preparation
Like any other financial report, having to rely on the manual input and data preparation can make it all the more susceptible to errors and gray areas. Organizations can address this by adopting an efficient financial management and reporting software that makes it easy to prevent errors brought by manual preparation, drill down into financial transactions, and consolidate budgets and other financials with greater accuracy. Doing away with manual processes also increases efficiency, so your teams can focus on initiatives that bring more value to the business. Financial planning software like Performance Canvas can significantly decrease the risk of errors across your financial statements, building trust throughout the organization.
Proper Forecasting Mitigates Risk
When it comes to sound financial management, setting the right goals sets up the path for you to head straight for them. In finance, this can mean adjusting your costs and expenses to build up your finances. Improving your collection and cash flow can also help boost your current ratio.
Any business serious about better finances would do well to use more efficient forecasting methods for more substantial balance sheets. For one, proper forecasting can help CFOs spot processes and activities that can build up costs in the long term. Once these are identified, businesses can reallocate the funds for these and channel them towards more value-generating activities. Doing so helps lower the overall risk so teams can identify them and pivot their financial strategy to generate real results.
It’s important to forecast how spending changes can course through your financial statements, allowing you to sift through your goals realistically.
Gain an understanding where risk may reside in your last mile. Receive input from those external to your group (internal audit, external audit, general counsel, compliance) and those within your accounting group who have intimate knowledge of the process.
Improve Transparency in Reporting
Having easy-to-use accessible dashboards can make it easy to reconcile balance sheets and complete financial reports, even with multiple departments and stakeholders involved. Dashboard reporting like what’s available on Performance Canvas can make it easy for C-suites and CFOs to check the status of the close while being able to focus specifically on problem areas that have the highest potential for error, which improves transparency and report visibility dramatically.
Use Automation for Data Imports
When it comes to closing financial statements, technology and the use of effective financial management software often comes into play. Amidst continually evolving business markets, financial management software helps companies leverage the automation of essential elements that allow them to close their balance sheets more effectively, while also speeding up how they gather their data.
Many accounting teams often struggle with how to reconcile company balance sheets efficiently. Inefficient data capturing methods, poor system integration, manual processing, and reliance on spreadsheets can lead to longer reconciliation.
Financial management software like Performance Canvas Financials (PCF) can help companies harness automation features to improve their reconciliation process. PCF allows automated data imports and extracts your on-premise or cloud applications.
Use A Financial Management Software to Improve Balance Sheet Integrity
To improve financial reconciliation and balance sheet integrity, companies must learn to adapt to new and more efficient processes that empower them to stay on track with their accounting demands. However, many companies are still keeping up with processing backlogs and continuing to struggle with effectively implementing process improvements. In the long run, companies need to note that there’s often a tiny window between one-period closing and another starting, and not addressing these issues early on can only prolong their accounting struggles.
Performance Canvas stands out for its world-class financial management features plus quality planning and budgeting without capital expenditure investments. This makes it easy to adopt for companies worried about the threat of disruption when rolling out new software to their teams. With Performance Canvas, companies can ensure that their balance sheets and financial reconciliations are accurate, on point, and timely.
Performance Canvas comes in PCFinancials BASIC, STANDARD, and the WORKS — all tailored with features and functionalities according to your needs.
Learn more about PCFs’ product packages today.