The process of financial consolidation can be time consuming and laborious, especially in the context of a sizeable group. Manually handling the various workflows and data involved can also lead to mistakes and errors that create problems and inaccuracies. If you’re looking to improve the quality of financial consolidation in your business – and to streamline the process so that you’re able to get more from it – automation could be key.
Why automate your financial consolidation process?
Within many businesses, financial consolidation is a chore that has to be carried out and one that can create a backlog of workflow. However, the opportunity to automate this process can transform it into something much more productive that provides analysis and insight that can deliver a genuinely new perspective. If you’re considering automating your financial consolidation process there are 5 very good reasons to go ahead and do it.
- Reduce the cycle time involved. Automation leads to greater efficiency whatever process it is applied to. In the context of financial consolidation this means that the number of steps that are necessary to complete the consolidation, validation, and certification of your business financials can be significantly reduced.
- Better management of data and business intelligence. Financial consolidations are not always reliable and mistakes can be easily made, especially if the process you’re relying on is complex or overly involved. Automation has the effect of simplifying the process of consolidation, removing unnecessary steps and minimising the potential for human error. As a result, your business will get better at managing cross-group information and will find it easier to integrate data from across the enterprise.
- Centralising data collection. The collection of data from subsidiaries within the group is often a time consuming process that is difficult to manage. Implementing automation not only helps to speed this up but also makes it easier. The result is centralised consolidation that is reliable and up to date.
- Producing reports and analysis to support key reporting and management requirements relating to the business. One of the major issues with financial consolidation is the number of different versions of the truth that it can produce. This can be incredibly unhelpful when it comes to trying to obtain perspective over the entire group and also make compliance and management difficult. Automation provides one single, central view with a common chart-of-accounts, which is essential whether you’re looking at management strategy or complying with statutory reporting obligations. It allows a business to go beyond simply meeting consolidation obligations and do more with the data available.
- Essential oversight throughout the process. Due to the volume of data that is involved in financial consolidation, being able to track and monitor it is a big advantage. It may also be necessary to audit the data that has been received from across the group for certainty and to gain insight. Automating financial consolidation makes both auditing and tracking simple and accessible throughout the process.
These are just some of the benefits to opting to automate financial consolidation. From clearer oversight to improved data collection and management, automation enables any group to establish a more efficient and reliable process.