A mature cloud solution provides multiple levels of consolidated reporting and key performance indicators (KPIs) measurable at any time, for any business entity.įinancial consolidation should not exist in a vacuum. Poor visibility into divisional and subsidiary performance inevitably hampers performance of the organization as a whole. Improve visibility into financial operations.By automating critical accounting processes, you will minimize the errors inevitable when managing multiple spreadsheets and let personnel focus on value-added analysis. It's important that your system also record the rates used at the time of any conversion, providing an important historical record of how sums were generated. Look for a solution that will automatically update currency conversion as rates fluctuate, and provide flexibility for manual overrides. An embedded tax engine will allow you to painlessly handle multiple tax schedules across subsidiaries for everything from GST to VAT, and from consumption tax to general sales tax. Meet local and global tax requirements.Using a cloud solution for financial consolidation can enhance efficiency in other areas, as well: Companies with international subsidiaries or multiple legal entities can expect to increase the efficiency and scope of financial and operational data consolidation." "Some customers accelerated time to close by up to 50%. "Businesses migrating from un-integrated legacy and custom accounting systems to NetSuite OneWorld can expect to accelerate financial close times by 20%," Nucleus found. One reason is that financial managers at headquarters seldom have to wait for weeks to receive data from their subsidiaries. For instance, a study conducted by Nucleus Research of users of NetSuite OneWorld found a marked acceleration in close times. Speeding Financial Close by 20% to 50%įaced with the need for rapid execution, more mid-market businesses are turning to the cloud model for financial consolidation, with impressive results. And by automating key accounting processes, a cloud ERP solution minimizes the risk of error and delay of manual approaches to multiple charts of accounts. Or try to get by with QuickBooks and spreadsheets by tasking analysts to manually roll up data from multiple divisions, calculate currency conversions and local taxes and more-accurately and on time.Ĭloud computing offers a scalable model for sophisticated financial consolidation in a fraction of the time, and without the substantial capital expenditure, of a typical on-premise ERP system. Install new servers, ERP software and back-up systems at new offices around the globe, and engage IT teams to configure, implement and maintain those systems. Naturally, companies will consider old brute force methods. It becomes decision time- how can we scale to meet the challenges of multi-company or multi-national financial consolidation? But with expansion comes the growing pains of financial consolidation that can encompass multiple divisions, subsidiaries and locations around the world.įast-growing companies find themselves confronted by a bewildering complexity of foreign currencies and languages, accounting standards, taxation structures, and reporting and compliance requirements that far outstrip the capabilities of the spreadsheets and standalone accounting applications they'd traditionally used for financial consolidation. Virtually every company wants to grow-it's the nature of business. East, Nordics and Other Regions (opens in new tab)
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