Faster consolidations = Greater financial agility
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HighRadius’ automated financial consolidation and reporting software minimizes manual consolidation process and expedites the financial reporting process.
Auto-import client hierarchy
Enable efficient collaboration amongst entities
Automate data extraction
Achieve 60% faster financial consolidation
100% Automated Group Reporting
Seamless Performance Analysis
Financial consolidation and reporting solution empowers you to improve financial consolidation accuracy by automating tasks and reporting. Gain valuable time by closing the financial close cycle in days through 60% faster financial consolidation.
Leverage consolidated management reporting to minimize errors and fraud for accurate financial reporting. Enable efficient collaboration amongst entities through automated reports and workflows.
Automate intercompany reconciliation and eliminate double counting of transactions to complete the financial close process in days, instead of weeks.
Automate manual consolidation tasks like data extraction, charts of accounts mapping, group reporting, and intercompany transaction matching for better strategic decision making and lower costs of manual intervention.
Leverage automated solutions for improved financial consolidation and reporting to adhere to complex accounting standards and regulatory requirements.
Enhanced stakeholder trust and overall transparency by automating complicated consolidation processes such as intercompany reconciliation and eliminations. Create trustworthy financial reports that provide an accurate picture of an organization's financial performance by using automated consolidation and reporting solutions.
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Get The ReportHighRadius' automated financial consolidation solution is ERP-agnostic, seamlessly integrating with any ERP system to ensure streamlined financial processes.
Automated financial consolidation refers to the use of technology to automate financial data consolidation from multiple entities, group organizations and diverse financial systems to create accurate unified financial statements. By leveraging AI/ML-powered financial consolidation solutions, organizations gain the ability to automate critical processes such as intercompany reconciliation and eliminations, reporting workflows, and currency conversion. This streamlines operations and enhances collaboration amongst different entities.
Automating the financial consolidation process is essential for businesses, managing large data volumes, especially for those that handle thousands of intercompany transactions daily. Furthermore, different entities of an organization often deal with multiple currencies. Therefore, it’s important for organizations to leverage automated solutions in order to ensure accurate financial consolidation and reporting.
Here’s how automated financial consolidation software simplifies the financial consolidation and reporting process:
Automated financial consolidation process begins by automated data extraction from all the relevant sources. The automation systems continuously synchronize data in real-time, ensuring it is always updated with the latest financial information. The collected data is then converted into a unified format.
Financial consolidation automated solutions then convert multi-currency financial information into a single currency for simplified and easier reporting. The exchange rates are predefined in the system and calculations are performed as per accounting standards.
The system then reconciles recorded transactions with external sources to ensure the accuracy of accounts across the organization. During the intercompany reconciliation process, the system eliminates any duplicate transactions and flags any discrepancies it comes across.
After reconciliation, the automated financial consolidation system generates consolidated financial statements, including balance sheet, income statement, and cash flow statement. The reports are once again scanned for any inconsistencies or errors in order to avoid incorrect reporting.
Lastly, the automated financial consolidation software generates the final versions of financial statements after all anomalies have been resolved. These reports are then used for strategic analysis by both internal and external stakeholders.
Efficient and accurate financial consolidation requires meticulous attention to detail due to the complex nature of the processes involved. Relying on manual labor for the same could pose considerable challenges for organizations.
Manual data collection and data entry processes are highly time consuming and error prone. Moreover, with multiple entities involved, it’s likely that different entities are using different data entry formats, further complicating the consolidation process.
The number of intercompany transactions occurring on a daily basis is incredibly high. In such a scenario, manual intercompany reconciliation and elimination is not a practical solution, especially for large organizations. Manually reconciling transactions and eliminating duplicate entries can lead to inaccurate data transfer and compromise the financial integrity of businesses.
While manual processes can still be feasible for small businesses, they become unsustainable for large organizations with multiple entities. As the business grows, manual financial consolidation becomes increasingly inefficient.
Since companies using traditional methods rely on manual data entry, they lose on the insights that can be provided with real-time data sync. Ultimately, the growth of the organization can get seriously hampered if they are not able to leverage real-time insights to take proactive actions in order to maintain and improve financial health.
Choosing the right financial consolidation software is extremely important for businesses if they want a simplified financial consolidation while ensuring adherence to all the regulatory requirements. The correct solution will be able to enhance data extraction and integration to automate key financial consolidation processes, in addition to having a user-friendly interface.
Check compatibility of software with existing systems like ERPs and CRM for seamless data flow.
Verify data protection measures and compliance of the software with relevant regulatory requirements.
Choose a software that provides immediate access to all intercompany transactions for accurate financial consolidation.
For enhanced ease of adoption, the software should have an intuitive and easy to understand interface.
The software should offer clear visibility and responsibility across various process levels.
Opt for a software that centralizes data across all business units for consistency and ease of access.
In order to choose the right financial consolidation software, you need to identify the problems your current financial consolidation and reporting system and processes are not able to solve. The more specific the problem identification, the better decisions you can take when it comes to choosing the right solution for your business.
Say goodbye to data silos and use the power of AI-based solutions to improve group consolidation. Get real-time insights to make better financial decisions and take the growth of your organization to the next level.
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The financial consolidation process refers to combining the financial statements of multiple entities, such as subsidiaries and business units, of the same parent company for unified financial reporting. The process is key for reflecting the accurate financial position of an organization.
The financial consolidation process is highly complex due to the high number of intercompany transactions and multiple currency rates. This means that traditional financial consolidation processes, aka manual consolidation, are becoming more and more outdated with each passing day. In order to overcome this problem, it is advisable for enterprises to employ the use of automated financial consolidation software, which can streamline intercompany reconciliation and eliminations and automate currency conversion for a faster and smoother financial consolidation.
The financial close process includes recording financial transactions, reconciling accounts, and finally producing financial statements at the end of the accounting period. The financial consolidation process refers to the unification of financial information of all the entities under an organization in order to create consolidated financial statements.
While the scope of financial close is defined at an entity or an individual company level, financial consolidation applies to a group or a parent company. The financial close process is performed at the end of every accounting period, which can be monthly, quarterly, or yearly. The financial consolidation process is performed once the financial close process has been completed for all entities under a parent company.
Large enterprises often have multiple entities spread across the globe, which can make the financial consolidation process incredibly challenging. The key challenges businesses face with financial consolidation include data inconsistency due to different formats and sources, intercompany reconciliation, currency conversion, regulatory compliance, entity collaboration, eliminations and adjustments, and accurate reporting and analysis.
These challenges can be overcome by the use of automated financial consolidation and reporting software, enabling organizations to create accurate and unified financial reports. Advanced financial consolidation software is capable of automating processes such as currency conversion and intercompany reconciliation and eliminations. By using financial consolidation software, companies can improve consolidation productivity and efficiency.
Being a highly complex process, financial consolidation can be error-prone if not done properly. This is especially true for manual financial consolidation and reporting processes. But considering the importance of financial consolidation, it’s imperative for businesses to leverage all the advanced tools they can to ensure accurate consolidation.
Automated financial consolidation effectively ensures the reduction of manual intervention, thereby minimizing errors. The solution offers features that allow organizations to adhere to accounting standards, increase consolidation efficiency and reporting, and automate intercompany reconciliation and anomaly detection. Organizations can therefore maintain financial integrity and enhance financial consolidation accuracy by automating consolidation processes.
Yes, financial consolidation software prioritizes your data security and privacy, meeting key compliance standards such as GDPR, HIPAA, SOC 1 Type 2, and SOC 2 Type 2. This ensures that your data remains confidential and secure, giving you peace of mind while managing your finances.
The implementation time for financial consolidation software varies based on the complexity of your organization’s requirements. However, HighRadius’ speed to value methodology guarantees swift implementation and ROI realization within 3 to 6 months.
