Software Implementation – 10 Tips to Make it Work

Software Implementation – 10 Tips to Make it Work

Share Button

Is your company in the process of selecting a new software for your business? Will you be involved in software implementation, but you’re concerned because you’re not very experienced in this kind of project or because you’ve experienced its fail before? Is your company seeing this as a business or an IT project?
The debate about the last question has a long history, but it’s hopefully a generally accepted view at this stage that a software implementation isn’t an IT project for its own sake, but to enable a business change, to become more effective, to free up time for more value-add activities, and to remain competitive.
Read more

Best practice – Budgeting

Best practice – Budgeting

Share Button

The annual budget is an essential business practice and needs to comply with some factors to be carried out to the best.

First of all, it has to be aligned and integrated with the organisation’s sales strategies and plans, as well as to be supported by a dedicated software.

Secondly, it is important to communicate the forecasts measuring KPIs, to automate the calculation of operational and financial data, to  be fully integrated with the associated planning, forecasting and reporting exercises, and to reduce the time needed to complete the process.

Read more

BI vs CPM – What’s the difference?

BI vs CPM – What’s the difference?

Share Button

“Is there a difference between BI (Business intelligence) and CPM (Corporate Performance Management)?”

A question that has plagued board rooms and senior leadership teams over the past few years.

In short, the answer is “yes” there is a difference, knowing which one to choose however means understanding how they differ and what your specific needs are.

Read more

The evolution of financial reporting

The evolution of financial reporting

Share Button

Financial reporting cycles are under greater pressure than ever before. New compliance standards, increased transparency expectations and heightened traceability levels have all contributed towards a sizeable shift in the way in which organisations report performance information. As a result,
Corporate Performance Management (CPM) is now becoming widely embraced as it allows organisations to be more efficient monitoring and managing their performance.

Read more

Financial consolidation as a function in the finance world

Financial consolidation as a function in the finance world

Share Button

‘Consolidation’ simply means the action or process of combining a number of things into a single more effective or coherent whole. However, to finance teams financial consolidation is a well- defined process that includes many complexities.

So what are the key steps in financial consolidation process

Collecting trial balance data (e.g., Assets, Liabilities, Equity, Revenue, and Expense accounts) from multiple systems, locations, contributors and mapping it to a centralised chart of accounts

Consolidating the data following specific accounting rules and guidelines, such as GAAP or International Financial Reporting Standards (IFRS)

Reporting results to internal and external stakeholders

Reports generated by the consolidation process include income statement, balance sheet and statement of cash flows.

It is not just about addition, it is about all the adjustments.

On the surface financial consolidation may present itself as a simple addition of numbers. However, it is more complex. Within financial consolidation specific adjustments need to be meet as the adjustments are being made from subsidiary level to parent company level, this includes the following.

  • Multi-currency conversion – in Europe alone there exist 11 different currencies over the 28 member nations

  • Intercompany transactions and balances eliminations

  • Adjusting journal entries – To reflect the correct position in the budget to which the expenses occurred

  • Accounting to reflect organisations that are not wholly owned by the parent company

Tools for Financial Consolidation

In mid-sized to large organisations the process of financial consolidation is predominantly handled by the finance team with the supervision of the financial controller and ultimately overseen by the CFO.

Historically financial consolidation was performed manually, however in the current climate there are several types of software tools used to support financial consolidation and reporting.

General ledger System – this works best if an organisation is using 1 ERP across the group, if there are additional other systems across the group the ability to collect data from other subsidiaries /locations and consolidate it.

Spreadsheets – Whilst these are regularly the tool of choice by finance teams, they are not inherently designed to support complex processes that accurate and timely financial consolidation requires. Loading data into a spreadsheet is a manual process and across multiple tabs within a work book the spreadsheet becomes difficult to navigate effectively. Additionally spreadsheets don’t provide audit trails regarding changes to financial results.

Purpose built consolidation tools – dedicated tools that are built specifically for financial consolidation are designed to integrate data for multi sources, with full audit trails and security, many have the ability to cope with multi-currency and multi- language entries. Historically these systems where deployed in online data centres they are now evolving and are available as cloud or SaaS offerings.

New standards of compliance, increased transparency and traceability of financial data are putting ever greater pressure on the time available in each reporting cycle. Consolidation reporting transforms data into consolidated financial information through automated processes to increase the speed and reliability of financial reporting. It enables, for example, the ability to compare and reconcile between management and statutory reporting; consolidate according to any accounting and reporting standards; and analyse information according to legal & internal management structures.

12 days of Financial Reporting (Infographic)

12 days of Financial Reporting (Infographic)

Share Button

The Christmas season can be overwhelming and stressful because of pressing demands to deliver
financial reports quickly. To complicate this already difficult situation, spreadsheet errors can be just around the corner, formulas are erroneously tweaked and you need to spend hours double-checking entered data.
Read more