On an annual basis, the Finance Department faces the challenge of the Intercompany Reconciliation process. For most companies, this is a task that takes far too long as controllers grapple with collecting the data and managing a myriad of error-prone spreadsheet reports. In turn this means that the end-of-year financial consolidation process is severely impacted, and the books are closed far later then they should be.

DATA ENTRY IS OFTEN THE SHOW-STOPPER

Before your data can be consolidated, it first needs to be collected, reconciled, validated, and standardised. This is often a complex process in the work routine of many Groups.

The issue is that many Groups lack the ability to directly access the financial accounting systems of foreign subsidiaries. Additionally, 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 this complexity is the fact that the various stand-alone solutions often do not permit standardised indicators over the entire reporting process. That carries a cost in terms of reliability and security, because data are then usually obtained using Excel files, but the manual compilation of these is a very laborious, tedious, and error-prone activity. This is often the show-stopper, or at the least a significant drain on time, as 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.

EASILY COMPLETE YOUR INTERCOMPANY RECONCILIATION

Rapid compilation of reliable financial statements and reporting documents should be the aim of every Group head. This can only be achieved is the process starts with proper intercompany reconciliation which ensures that all reported data are valid and consistent. Spreadsheets stifle this process. The solution is to implement a move to a single software platform that is built-for-purpose and delivers a single source of the truth for easy intercompany reconciliation every time.

FURTHER READING

EASY INTERCOMPANY RECONCILIATION