Whether you’re an established multi-national enterprise or a company going through rapid growth, financial consolidation is a particular pain point you will have to face when multiple divisions, subsidiaries and locations around the world come into play.
In simple terms, financial consolidation is the process of combining financial data from different subsidiaries or entities within an organisation, pulling the data and rolling it up to a parent company for reporting purposes.
There are a list of complexities companies will have to consider for financial consolidation, including (but not limited to!):
These factors often go beyond the capabilities of basic system and spreadsheets, causing stress, costing resource time, and ultimately making the financial consolidation process a bit of a mess. While many companies will consider installing new servers, hiring new IT and finance teams, or trying to get by on manual data entry in spreadsheets to get by – this is not a solution.
Cloud-based software will offer a scalable solution for a more efficient financial consolidation and below are just 3 ways it can achieve this.
NetSuite will automate many aspects of data entry and reporting, which minimises the risk of human error and delay. Creation of any financial report can be partially or fully automated, reducing costs while increasing efficiency.
Not only does automation increase efficiency of financial consolidation, but it will help to improve business process efficiency across the board on a daily basis.
NetSuite will help you meet tax requirements in multiple regions by using an embedded tax engine to allow you to painlessly manage across subsidiaries. From GST and VAT to consumption and general sales tax NetSuite will help you meet local and global requirements in all.
In addition, NetSuite supports 190+ currencies providing you will a solution for managing and updating currency conversion as rates fluctuate. 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.
Visibility is crucial for financial consolidation, a lack of this into divisional and subsidiary performance will hamper performance of the organisation as a whole and make the consolidation process much harder.
NetSuite, as a cloud-based solution, will provide you with complete, real-time visibility – with multiple levels of consolidated reporting and KPIs measurable at any time, from any business entity, anywhere in the world.
A study conducted by Nucleus Research of users of NetSuite OneWorld found a significant acceleration of financial close and consolidation for its users.
“Businesses migrating from un-integrated legacy and custom accounting systems to NetSuite OneWorld can expect to accelerate financial close times by 20%,” Nucleus found. “Some customers accelerated time to close by up to 50%. Companies with international subsidiaries or multiple legal entities can expect to increase the efficiency and scope of financial and operational data consolidation.”
The ability to consolidate multiple accounts quickly and efficiently is an advantage to any business with subsidiaries and international presence. NetSuite’s true cloud-based software will take your organisation productivity and visibility to the next level.
Once you’ve made the decision to move on from spreadsheet accounting or to upgrade your legacy ERP system, how do you choose the right ERP software?
When you manage your whole business through an ERP system, you’re able to get a bird’s-eye view of your business, and better understand company-wide impacts of decisions, plans and unforeseen changes. This coordinated view is a real boon for companies looking to grow and to increase efficiency.
It’s essential to quantify the value and expected returns from implementing a new ERP system like NetSuite. After all, any new IT system is a substantial business expense, requiring a compelling business case to gain buy-in from stakeholders.
As businesses strive for efficiency, they are increasingly turning away from on-premises technology and moving to the cloud. As testament to this shifting trend, statistics indicate that cloud ERP is forecast to grow at more than 17% between 2022 and 2028.
ERP systems help companies automate and streamline operations, but how can they tackle the problems posed by inventory management?
When you manage your whole business through an ERP system, you’re able to get a bird’s-eye view of your business, and better understand company-wide impacts of decisions, plans and unforeseen changes. This coordinated view is a real boon for companies looking to grow and to increase efficiency.