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The 3 Things Your Financial
Consolidation Software Doesn’t
Have…But Should!
“FINANCIAL PROCESSES SHOULD NO LONGER BE ISOLATED INTO SEPARATE SYSTEMS FOR
CONSOLIDATIONS OR BUDGETING AND PLANNING OR TH...
The Top 3
Accounting
Intelligence
1
Adaptability to
Growth and
Change
2
Financial Reporting
(“The Last mile of
Finance”)
3
Accounting
Intelligence
1
Double-entry logic
as an extension of your ERP, all entries into the system
should have two sides – as accounting dictates...
REPLAY THE WEBINAR NOW!
Never miss a webinar with us!
Adaptability to
Growth and
Change
2
Any system needs to accommodate for company growth.
Growth often comes through global expansion and M&A
activity. As such ...
“GLOBAL COMPANIES NEED THE FLEXIBILITY
TO SUPPORT CURRENCY DIFFERENCES.
COMPANIES WITH BIG TRANSACTIONS –
SUCH AS INVESTME...
Financial Reporting
(“The Last mile of
Finance”)
3
Many CPM systems stop at the ‘last mile’. But more
advanced systems will take financial information
through a controlled p...
CLICK HERE TO SEE COMPLETE LIST OF UPCOMING DEMOS!
Tagetik: Unified Performance Management Software
Kevin Gray is Vice President of Solutions Consulting for
Tagetik North America. Kevin joined Tagetik in 2008 and has
25 ye...
THANK YOU
www.tagetik.com
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The 3 Things Your Financial Consolidation Software Doesn’t Have…But Should

Finance organizations are being asked to do more faster in an environment of ever growing complexity and change. As a result, companies are exposed to greater risk in generating financial statements.

Mistakes have a dramatic impact on reputation, stock, partner and investor relations. For those companies looking to replace older CPM systems, there’s much more to consider than the type of user interface or deployment options. You need an in-depth look at critical features to look for in a modern CPM solution that has the capability to adapt to business change and growth in coming years.

Download this eBook to learn the 3 Things Your Financial Consolidation Software should have.

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The 3 Things Your Financial Consolidation Software Doesn’t Have…But Should

  1. 1. The 3 Things Your Financial Consolidation Software Doesn’t Have…But Should!
  2. 2. “FINANCIAL PROCESSES SHOULD NO LONGER BE ISOLATED INTO SEPARATE SYSTEMS FOR CONSOLIDATIONS OR BUDGETING AND PLANNING OR THE LAST MILE. DISCONNECTED SYSTEMS REQUIRE TOO MUCH MANUAL INTERVENTION TO MAKE SURE DATA IS ACCURATE AND SYNCHRONIZED. WITH THE RIGHT SOLUTION, PROCESSES CAN BE CONNECTED FROM THE TIME YOU PULL SOURCE DATA FROM THE LEDGER ALL THE WAY TO THE DELIVERY OF DOCUMENTS IN THE LAST MILE.” Kevin Gray, VP Solution Consulting Finance organizations are being asked to do more – faster – in an environment of ever-growing complexity and change. As a result, companies are exposed to greater risk in generating financial statements. Mistakes have a dramatic impact on reputation, stock, partner and investor relations. For those companies looking to replace older CPM systems, there’s much more to consider than the type of user interface or deployment options. You need an in-depth look at critical features to look for in a modern CPM solution that has the capability to adapt to business change and growth in coming years.
  3. 3. The Top 3 Accounting Intelligence 1 Adaptability to Growth and Change 2 Financial Reporting (“The Last mile of Finance”) 3
  4. 4. Accounting Intelligence 1
  5. 5. Double-entry logic as an extension of your ERP, all entries into the system should have two sides – as accounting dictates. This eliminates risks that one-sided entries pose to your statements down the line. No one likes a restatement. Control provide a control mechanism to monitor where contributors are in the reporting process. Includes the ability to track submissions and data sources, with controls prevent contributors from making changes as the process goes up the chain. Solutions should provide full auditability. Cash Flow should show cash flow position within the software as part of the generation of financial statements. You shouldn’t have to do a post-close analysis to figure out where the cash is. Detail regulatory reporting requires a detailed breakdown of data that is typically collected from different systems. For example, if a bank has $100 million in mortgages on the balance sheet, it now has to show details such as the number of single-family and multi-unit mortgages and identify which are delinquent. Some things to consider when looking for CPM: Accounting Intelligence ACCOUNTING INTELLIGENCE IS ONE OF THE KEYS TO A SUCCESSFUL CPM SYSTEM. A CPM SYSTEM IS TRULY AN EXTENSION OF A COMPANY’S ERP OR GL SYSTEM AND SHOULD BE HELD TO THE SAME STANDARDS. “TODAY’S CONSOLIDATION SOLUTIONS SHOULD DO MORE AND MORE OF THE WORK FOR YOU. YOU SHOULD BE ABLE TO MONITOR WHO SUBMITTED INFORMATION, HOW IT GETS UP THE CHAIN, WHO HAS REVIEWED, APPROVED AND ADVANCED IT, AND THEIR COMMENTS ALONG THE WAY. THE PROCESS SHOULD BE AUDITABLE AND INHERENTLY CONFORMING, MAINTAINING THE INTEGRITY OF THE DATA UNDERNEATH.” Kevin Gray, VP Solution Consulting Click here to read how a global leader like Brembo leveraged a single application to manage all of their complex financial processes.
  6. 6. REPLAY THE WEBINAR NOW! Never miss a webinar with us!
  7. 7. Adaptability to Growth and Change 2
  8. 8. Any system needs to accommodate for company growth. Growth often comes through global expansion and M&A activity. As such your system needs: Built-in logic for converting currency (not leave it up to the user to make adjustments). More importantly, the logic needs to accommodate historical exchange rates for retained earnings and apply it period-over-period. You can’t get a true picture of performance until you isolate the variance in converted budgets. This typically happens in a post-close analysis in a separate system using a manual spreadsheet process. CPM systems should automatically manage such variances, giving you the ability to evaluate at any time how the business is doing irrespective of currency fluctuations between budget and actuals. For true management reporting, certain costs need to be allocated out to get a more detailed picture of how operations are actually being run. CPM systems should convert local currency to a common currency for performing such allocations. Adaptability to Growth and Change CAUTION Does your current system adapt to growth and change? Find out more in this informative whitepaper: Top Signs It’s Time to Replace Your Financial Consolidation System
  9. 9. “GLOBAL COMPANIES NEED THE FLEXIBILITY TO SUPPORT CURRENCY DIFFERENCES. COMPANIES WITH BIG TRANSACTIONS – SUCH AS INVESTMENTS IN OTHER COMPANIES, DIVISIONS AND SUBSIDIARIES – NEED TO COMPLY WITH ACCOUNTING RULES FOR THE EXCHANGE RATE OF THE DAY. USERS OF OLDER SYSTEMS THAT CAN’T ACCOMMODATE CHANGING EXCHANGE RATES NEED A WORKAROUND. LOOK FOR A NEWER SYSTEM WITH BUILT-IN RULES SO YOU CAN DO CURRENCY CONVERSION RIGHT WITHIN THE SOFTWARE.” Adaptability to Growth and Change Any company doing business in Europe is faced with reporting requirements using local GAAP standards and newer regional IFRS standards. Companies need to show a set of year-over-year comparisons in the old and new standards. Systems today should have multi- standards awareness already built in. Older systems don’t have the ability to effectively handle M&A activity and other structural business changes. Growing companies need systems with built- in awareness to give insight into the impact of such events such as: Value of the investment at any stage, currency conversions and exchange rates, net equity impact, roll over into any dividend or investment eliminations, equity picks ups, what if scenarios, etc. And it needs to manage any intercompany relationships as it grows. CAUTION Some systems claim to manage multi-standards, but you actually have to create a redundant set of information and reconcile it. Kevin Gray, VP Solution Consulting
  10. 10. Financial Reporting (“The Last mile of Finance”) 3
  11. 11. Many CPM systems stop at the ‘last mile’. But more advanced systems will take financial information through a controlled process and integrate it with narrative information about results. Look for a system that provides collaborative workflow in a controlled auditable process for managing reviews. An automated process is much more secure than having your financial information floating around in an email attachment. Complete CPM solutions will automatically pull data from the ledger, validate and manage data through the closing process, and streamline the production of financial statements and the various other packages needed in the last mile. “MODERN SYSTEMS SHOULD MAINTAIN LIVE LINKS INSIDE REPORTS BACK TO SOURCE DATA AND ELIMINATE THE NEED TO COPY AND PASTE DATA. AND, IF YOU HAVE TO CHANGE YOUR CONSOLIDATION OR POST A LAST MINUTE JOURNAL ENTRY, YOU WANT IT TO FEED INTO YOUR DOCUMENT STRUCTURE. YOU DON’T WANT TO HAVE TO REMEMBER TO GO BACK LATER AND UPDATE TEN DIFFERENT SECTIONS OF THE DOCUMENT.” Kevin Gray, VP Solution Consulting Financial Reporting (“The Last mile of Finance”) Click here to read: “How to Speed Up Your Closing Cycle”
  12. 12. CLICK HERE TO SEE COMPLETE LIST OF UPCOMING DEMOS! Tagetik: Unified Performance Management Software
  13. 13. Kevin Gray is Vice President of Solutions Consulting for Tagetik North America. Kevin joined Tagetik in 2008 and has 25 years of experience helping customers manage and implement ERP, CPM and BI solutions. Before joining the software industry, Kevin worked in accounting and financial planning. Contact Kevin: KevinGray@tagetik.com Kevin Gray
  14. 14. THANK YOU www.tagetik.com

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