Businesses have several and rigorous month-end close activities to ensure that their outputs are accurate. These activities are meant to generate real-time business insights to support the decision-making process of their frontline and senior managers.
These close activities are composed of several processes that are today unfortunately performed manually through Microsoft Excel. This manual execution significantly increases the errors in the results aside from requiring too much time from the finance staff to complete them.
Some ERP systems have a way of simplifying master data by combining transactional data that were stored in several tables into one large table. Some ERP systems offer the ability to automate certain entries and eliminate intersystem reconciliations to achieve real-time insights.
The main problem with arguably all ERP systems in general is that these ERP systems do not eliminate a business´ need to record, support, and approve journal entries. It also does not validate balance sheets and cash flow statements.
In addition, while ERP systems can handle reconciliations, it can only do it superficially. Certain data might not even be traceable between sources which means that the finance team will have to manually validate all balance sheet accounts. They will also need to manually perform all reconciliations not supported by ERP systems.
This is where a financial planning & analysis (FP&A) software comes in handy. FP&A software like Performance Canvas Financials is a purpose-built software designed to provide a logical structure and intelligent automation in place. It is designed to streamline the current processes in your organization and then intelligently automate them.
Performance Canvas Financials affords a seamless flow of information across systems by extracting data directly from various sources. With an FP&A software like Performance Canvas Financials, you can automate journal entry and voucher posting into your ERP system. You can read balances from your general ledger as well as validate your balance sheet and cash flow statements.
One of the main advantages of Performance Canvas Financials is that you are afforded the ability to record entries and other supporting figures in a single platform. Driven by business rules, you can even have customized fields not necessarily supported by your ERP system so that you can achieve enhanced transparency in your output.
In conclusion, Performance Canvas Financials basically works as a supplement to your ERP system whereby it reads information from it or any other system you might have, it then streamlines the processes so that balance sheet and cashflow validation are effectively done.
To know more about how it works, avail of the free product walk through of Performance Canvas Financials or request for a free 30-day trial by visiting www.performancecanvas.com or by emailing [email protected].
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