In order to fullfil internal and external reporting requirements, data needs to be consolidated from different sources into different formats, applying different accounting and valuation rules.
Today’s corporate officers are held more than ever before to higher standards of accountability. Their businesses grow more complex and stakeholders and business owners demand faster access to accurate results. Any changes made, in the corporate structure or other, need to be reflected properly in all books.
Compressed reporting cycles, changing and increasing regulations, and demands for increased financial transparency are just some of the CPM challenges companies face today when they close their books and prepare statutory and management reports.
The time required to collect, consolidate, verify and share data means that finance professionals in these companies have less time to spend on analysis and other strategic activities.
Financial consolidation simplifies the tasks associated with consolidation when bringing speed, accuracy, agility, transparency and insight to the process. This way finance leaders can spend more time analyzing results and guiding the management to greater ROI and low total cost of ownership.
Successful companies are leveraging technology to add value to their business, but also in order to confidently meet regulatory requirements. .
Spreadsheets are of limited use when undertaking a consolidation exercise. Their drawbacks include:
- Poor audit trail
- Inconsistency of data
- Insufficient data protection
- Significant error and control risks
- Insufficient follow-up of controls and complex formulas
- Low level of automation
- Manual validation and control of package data
- No ledgers and predefined statements
Aexis Can deliver People, Process, Content & Technology to support Consolidation. Main Benefits are:
- Finance manages the consolidation process. define and maintain all financial consolidation rules and processes from the office of finance.
- Multiple ERP systems, supported through a reporting chart of accounts.
- Built-in best practices. ensure accurate collection and reconciliation of financial results, and eliminate data and calculation errors.
- Transparent audit trail to satisfy both internal and external auditors in order to guarantee timely and accurate consolidation, in a controlled and efficient manner.
- Local and global financial consolidation. meet the complete range of consolidation and reporting requirements including International Financial Reporting standards(IFRS) and U.S. Generally Accepted Accounting Principles (GAAP).