This is good news! You may have expanded products and locations, acquired new companies or partners, perhaps you are now managing multiple currencies. It’s all very exciting. But along with all the changes, no doubt your accounting methods need an overhaul in order to keep up with your growth.
Financial Consolidations, the Traditional Way
The accounting methods that have served you so well up to now may not serve so well moving forward. The processes associated with closing the books, reporting, and maintaining regulatory compliance are becoming more complex and your decision-makers need more real-time information and a big-picture view of your operations and assets.
Yes, your high touch, spreadsheet-based accounting methods may slow you down and hold you back. Some of the drawbacks include:
- Risk of error. Multi-entity consolidations that are managed with spreadsheets pose a serious threat of error. Not only is human error a real possibility when multiple systems are involved, but there is also the real possibility that critical data will be lost or corrupted. At the very least you will require a complex set of checks and balances to keep everyone on the same page.
- Waste of resources. Your employees’ time is valuable and spreadsheet accounting devours time in so many ways. With various people in multiple locations closing their books and sending reports to a single, corporate employee, the numbers will take longer to align. If you use e-mail or interoffice memos to request information, wait for confirmations, and share data, there’s no way collaboration can happen in real-time. If there are late entries or other adjustments required to fully close out the consolidation, the timeline stretches on and on and the frustration mounts.
- Impairment of strategy. Now more than ever your company needs to optimize its strategy in order to maintain the momentum of growth. Spreadsheet accounting and the lack of universally-accessible real-time data will only hold you back.
There Is a Better Way
Today’s growing companies rely on cloud-based financial management software to automate their workflows and compile, analyze and share important data. Automation speeds up every step of your accounting processes and helps ensure data accuracy, consistency, and compliance. Now you can bring together the financials of multiple entities and get an overall picture of the parent organizations’ health much faster and more reliably than has been possible with the old manual spreadsheet-based method.
- One-Click Consolidations
- Easy Multi-Currency Management
- Simple Setup of New Entities
- Flexible Reporting
An advanced, built-to-scale system like Intacct’s financial management suite enables superior collaboration and transparency across entities, departments, and management levels. Involving key stakeholders in the closing and consolidation activities helps strengthen both intra- and inter-entity relationships and provides optimum visibility into the organization’s performance. And this is exactly what your growing company needs to keep expanding into the future.
To learn more about Intacct’s powerful solution, read
By Express Information Systems