Financial consolidation is an essential process, no matter what the size and scale of the business. However, for many organisations, the effort involved in financial consolidation and close can be demanding and time consuming. As a result, it often feels a lot like a race to simply get the right data in the right place at the right time. What’s missing in this approach is any strategic insight into enterprise performance and competitive standing. These 5 tips to a quicker and easier financial close could help you find a financial consolidation solution that enables you to do more than just the minimum.
1. Make sure you have multiple currencies covered
Working with a range of different currencies can introduce a lot of complexity when it comes to financial consolidation and close. If you’re only used to single currency consolidation then the switch to numerous currencies can throw up multiple issues that slow the entire process down. Find a consolidation solution that accommodates more than one currency and which will automatically triangulate exchange rates.
2. Aim for a single set of consolidated results
Depending on the structure of your organisation, financial close may mean dealing with vast volumes of data that are coming from many different corporate entities within the business structure. In a situation like this, in order to ensure the accuracy and quality of data, it’s essential to aim for a single set of consolidated results. This will require a solution that integrates data from all the different systems across the business.
3. Look for ways to streamline the process
When it comes to financial close you may always find yourself working to tight deadlines with data coming from multiple sources, potentially across different time zones. The right financial consolidation solution will provide tools to help manage this. For example, automated notifications can be used to ensure that various users understand when data is required to be submitted and adjustment approvals can be more tightly managed.
4. Use an audit log
Maintaining transparency in the process of financial close establishes clear lines of responsibility within the business and simplifies accountability. That’s why it’s so essential to ensure that the consolidation solution you’re using maintains an audit log. This will show every action, input and change, from posting data to editing entries. There will be no confusion over who has done what and where data has come from, improving the clarity and efficiency of the close process.
5. Make the data work harder
The data that is collected as part of the financial consolidation and close process can be used to achieve more than just meet these accounting requirements. With the right solution in place you’ll also be able to get more insight into the financial side of the business, to improve analysis and better inform projections. The overall impact will be more powerful decision making with which you can achieve better results.
Our financial consolidation solutions can help to achieve all of the above – and more. If you’re looking for a quicker and easier financial close the right tools could be transformative.