Financial consolidation is not as easy as some may feel. It is extremely complex and involves a myriad of legal entities. Account structures and currency translations will have to be taken into account, and on top of that there will be the fact that the law changes from time to time. Regulations will have to be followed and someone is going to have to ensure that the firm is up to date at all times. It will make things much easier and faster to work with a single platform and providing this can connect management reporting to statutory reporting whilst also including forecasting sales and planning the budget, then you know you will be legal and working within the industry framework. If you are not sure of the standards that need to be followed, then it is GAAP and IFRS.
Self-Managed Real Time Consolidation Solution
The worry of many is that the act of providing financial statements that are robust is going to take up a lot of the working day. The reality is that this is not the case, and when using Anaplans financial consolidation app, the weeks that you worried you were going to lose will suddenly be returned to you.
Using the App
Once up and running, publicly traded companies that utilize it will be possible to: –
- Speed up the time that it takes to close up accounts. This will be the same for annual, quarterly or monthly reports.
- It will not matter if it is IFRS or GAAP standards of accounting that is employed by the company, there will be total support provided.
The app can be used for many activities, with the main ones being: –
- Journal methods
- Intercompany reconciliation
- Consolidated financial reporting
- Closing the books
- Multi-currency support
It is not just the end of month figures that have to be dealt with. There also has to be a vision for the future and this cannot be ignored. The more insight you have into what is going to happen, the more solid the company will be. Failing to prepare for future events can leave the companies trading ability at risk but financial consolidation will mitigate the risk.
If the future cannot be predicated than it will not be possible to plan for later years. The ability to see which way the market is heading will put you at an advantage when dealing with customers and the opposition. Learning that consolidated results are affected by FX evolutions can be vital for future business. Obviously, the balance sheet must always balance and failure to o this will not only put you at risk of investigation by the authorities, but make it difficult to make decisions when it comes to taking the firm forward. It is the future that will be affected by mergers and acquisitions and knowledge of this must be complete.
An income statement will be easy to complete and cash flows can be managed internally. Any changes in equity will be detected quickly and if the changes are to the detriment of the company, the impact can be mitigated quickly.
Auditing is a must in all firms, and when this is carried out in conjunction with an income report it give a great overall of the trading position of the company. The app will also allow integrated dashboards and reporting. It will be possible to increase the productivity of the finance department as each phase that they go through will take less time than it would without them using it. Results will be fully accurate and downloading the app is easy.