Meeting the consolidation challenge is difficult because organizations use manual, inadequate, or multiple consolidation systems for their financials.  The result:  they are unable to structure, control, and automate the process for internal and external reporting, and are unable to gain a single, accurate view of financial results.

 

 

ERP and ledger systems are excellent for storing data and managing the transactions that support the business.  Unfortunately, they're not designed to easily integrate or consolidate data from other sources.

 

To produce appropriate financial statements, a single aggregated view across all transactional systems is required. To ensure the closing process is timely and accurate, the system must handle all the complexities of consolidation - such as currency conversion and inter-company eliminations.

 

Spreadsheets

 

Multiple spreadsheets make each person or department an island of report information.  This can lead to duplicated effort and opens the door to inconsistent data interpretation.

 

In the Sarbanes-Oxley era, internal control risk is directly linked to the degree of spreadsheet use within an organization.  Spreadsheets drive unacceptable rates of input error - from data entry, re-keying, and cut-and-paste activities.

 

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Companies require consolidation systems that streamline processes, ensure accuracy, and help control costs.  It is essential that the system deliver in these areas:

 

 

 

Compliance is a critical driver for publicly traded companies.  But improving business practices is just as relevant for private companies, as Finance gains greater visibility into business performance and achieves greater accountability.