How to improve intercompany reconciliation and bring order to the data jungle
More and more enterprises are operating globally. They set up subsidiaries abroad to open up new markets and to satisfy the needs of local customers. These subsidiaries need to be consolidated and integrated into the consolidated financial statements. One of the biggest hurdles in this process – and a mammoth task for corporate accounting departments – is obtaining the data from the financial statements. That’s because many corporate groups also operate a plethora of fragmented accounting systems used by their subsidiaries to post their data. Adding to this is the fact that all of the companies rely on Excel files, which have to be collected manually by the corporate accounting department – a highly time-consuming and error-prone exercise.
Our white paper will show you how to organize your “data jungle”, improve your intercompany reconciliation process, and create a reliable foundation for your consolidated financial statements.
Before the data can be consolidated, it first needs to be collected, reconciliated, validated, and standardized. This is often a complex process in an age when many groups are operating at a global level. All too often, groups lack the ability to directly access the financial accounting systems of foreign subsidiaries. The subsidiaries often use different ERP systems and Business Intelligence tools, with the parent company not having the interfaces needed to access them. Adding to the complexity is the fact that the various stand-alone solutions often do not permit standardized indicators over the entire reporting process. That carries a cost in terms of reliability and security. This is because data are then usually obtained using Excel files, but the manual compilation of these data is tedious and error-prone. More often than not, the data needs to be repeatedly clarified and corrected. Most corporate accounting departments can only dream of having a complete picture across the different reporting units and their progress in the data collection. In reality, everyone is busy with working out what the current processing status is and dealing with potential problems with the data collection process from the subsidiaries.
- The challenge: bringing order to the data jungle
- The reality: MS Excel, islands, and sub-performing processes
- The solution: Fully integrated data at the click of a button
- Key Advantages: How LucaNet.Group Report makes your life easier
- Checklist: When do you need LucaNet.Group Report?