Companies that have multiple entities or those that are publicly listed often struggle with several bottlenecks in their financial consolidation and reporting.
Tasks such as integration of new legal entities or follow-up of purchase price accounting puts the entire process to unnecessary risks if the way in which they are performed is not done correctly or promptly.
Given that all financial processes within an organization are linked to each other in one way or the other, it is imperative that an organization strives for a more efficient consolidation and reporting process.
What are the drivers of an efficient process? Below are the most important drivers.
- Financial Reporting Software used and business rules setup
How you collect data at local levels and how your finance department executes automatic entries at group level is very important. Consequently, how your finance department generates reports and analyses them is also important. In all of these, the financial reporting software that is used in the organization plays a crucial role in getting everything correctly as these are the very foundation of the process.
- Finance team´s Consolidation abilities
Like with most things, the internal skills and resources of your organization is one of the most important drivers to an efficient consolidation and reporting process. While technology automates quite a lot of the tasks, a certain level of skill is still needed from the finance department in order to get things correctly.
- Intercompanies matching and reconciliation procedures
One of the trickiest parts in financial consolidation and reporting is the intercompanies´ flow of reconciliation procedures inside the group. Luckily, there are reporting and consolidation software like Performance Canvas Financials that offers automation of intercompany matching and elimination as well as automation of account reconciliation process.
- Change management abilities
Another important driver to an efficient financial consolidation and reporting process is your ability to foresee and manage possible changes such as integration of a new legal entity, update sin IFRS or GAAP regulations and other pro forma financial information rules.
- Continuos Improvement Efforts
Another driver is your organization´s commitment to continuous improvement which includes among other things local trainings in order to improve documentation abilities, auditability or automation of tasks.
Performance Canvas Financials
Performance Canvas is one of the most powerful reporting and consolidation software out in the market today, It delivers best practices in Financial Planning & Analysis through prepackaged finance logic such as CAPEX planning, FX analysis, Profitability Analysis, AR/AP Analysis, Cashflow planning.
Its consolidation capabilities include support for both GAAP and IFRS, intercompany automation, intercompany matching, currency automation, minority interest support, complex ownership support, ownership simulation, and currency simulation.
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