In the ever-evolving world of finance and accounting, businesses are constantly searching for ways to streamline their processes, improve accuracy, and enhance efficiency. One area where many organisations face challenges is financial consolidation. Manual consolidation methods are time-consuming, prone to errors, and lack the agility required to keep up with the demands of modern business.
However, with the advent of automated financial consolidation software, organisations can revolutionise their accounting practices. With this in mind, it’s safe to say that automated financial consolidation software can completely transform your accounting processes.
What is automated financial consolidation?
Automated financial consolidation refers to the process of combining financial data from multiple entities within a company, using automation tools/software.
Streamlined consolidation process
Traditional financial consolidation often involves manually gathering data from various sources, inputting it into spreadsheets, and performing complex calculations. This labour-intensive process is not only time-consuming but also leaves room for errors and inconsistencies in your finances.
Automated finance consolidation software simplifies and streamlines the entire process. It automates data collection, validation, and financial consolidation, eliminating the need for manual data entry and reducing the risk of errors. By automating repetitive tasks, the software frees up valuable time for your accounting team.
Enhanced accuracy and data integrity
Financial consolidation can only ever be as good as the data it’s built from. Even minor errors can have significant consequences for decision-making and compliance. Human errors are extremely common in manual consolidation processes, especially when dealing with large volumes of data.
One main benefit of automated financial consolidation software is that it significantly reduces the risk of errors by enforcing consistency, accuracy, and data integrity throughout the consolidation process.
iplicit’s bespoke software performs automated calculations, validations, and cross-referencing, ensuring that data is accurately aggregated and eliminating the potential for human mistakes. With improved accuracy, your financial reports will be more reliable, providing a more solid foundation for your business decisions.
Real-time visibility and reporting
Timely access to accurate financial information is crucial when you need to make decisions. However, manual consolidation processes often result in delays and outdated information as it takes so long to produce consolidated accounts.
Automated consolidation tools provide real-time visibility of your financial data. They enable you to access consolidated financial information instantly, with up-to-date data across your group business. The software automates data collection, consolidation, and reporting, allowing you to generate financial reports on-demand.
With real-time visibility, you can make informed decisions quickly and respond promptly to market changes.
Improved compliance and audit readiness
Compliance with accounting standards and regulations is a top priority for businesses of all sizes. Manual consolidation processes make it challenging to ensure compliance and prepare for audits. With automated consolidation software, compliance can be built in using automatic controls, audit trails, and standardised templates. The software adheres to accounting principles and regulatory standards, ensuring that your financial reports are accurate and compliant.
Additionally, software such as iplicit generates organised and easily accessible audit trails, simplifying the audit process and reducing the risk of non-compliance penalties.
Scalability and adaptability
As businesses grow and evolve, their consolidation needs become more complex.
Manual consolidation processes often struggle to keep up with currency fluctuations, changing organisational structures, acquisitions, and other business developments. Automated financial consolidation software can grow with your business. The software can handle multiple currencies, minority interests, intercompany recharging, increased data volumes, accommodate changes in reporting structures, and easily integrate new subsidiaries or business units.
With its flexible architecture, the software can be customised to fit your specific needs, allowing you to scale your accounting processes efficiently.
Enhanced collaboration and communication
Collaboration among different departments and stakeholders is vital for successful financial consolidation. Collaboration isn’t easy, and manual processes often involving multiple teams can make it even more difficult. Working with multiple different spreadsheets can lead to:
- Version control issues
- Data discrepancies
- Communication gaps
- Confusion
Utilising financial consolidation tools that are automated promotes collaboration by providing a centralised platform for data collection, consolidation, and reporting. With everyone accessing the same platform, stakeholders can collaborate in real-time, review consolidated data, and provide input seamlessly.
How does automated financial consolidation save time and money?
Manually consolidating data in multiple spreadsheets , and dealing with multiple currency fluctuations is not only time-consuming but also prone to errors. However, automated financial consolidation software eliminates these manual tasks, saving your accounting team countless hours.
By reducing the time spent on data manipulation, validation, and report generation, the software increases productivity and frees up resources.
This improved accuracy and efficiency also reduces the need for costly rework and corrections.
Transforming your accounting with iplicit
Automatic financial consolidation tools can be a game-changer for businesses looking to transform their accounting practices. By streamlining the consolidation process, your business can benefit from:
- Improved accuracy
- Real-time visibility
- Compliance
- Easy scalability
If you’d like to learn more about our bespoke automated financial consolidation software, please contact us or book a demo to experience the platform for yourself.