Do you run a small or medium-sized business that is growing fast? If so, are you facing a financial consolidation challenge? It’s obvious that the fastest growing businesses face this type of challenge when they create new subsidiaries within their home countries or beyond. The typical MS Excel spreadsheet becomes less useful and obsolete due to the complexities encountered when running multi-national companies. When operating beyond the border, tax structures, accounting standards, currency exchange rates and legal compliance rules are utterly different. So how can you depend on standalone accounting applications when trying to consolidate the financial affairs of your rapidly growing company? It’s time to scale your operations in order to meet the challenges of running the subsidiaries within your country or around the world.
Best methods to pick
If you want to succeed in finan, you should avoid old accounting methods. In other words, don’t think even for a minute that the standalone ERP software plus a few backup systems are all you need to consolidate your financial reporting. Even if you hire a team of talented IT gurus, old accounting methods, including QuickBooks, cannot beat a cloud-based computing solution. These work manually when rolling up data from different subsidiaries and computing currency conversions and taxes. While these can work, still, a lot of time can be wasted and accuracy of results cannot be guaranteed.
What you should adopt is a cloud computing ERP model. In addition to automating consolidation, this solution will reduce your capital expenditure that is normally incurred when running a standalone, premise-based ERP system. With the cloud ERP system, you can reduce the risk of making mistakes and avoid manual accounting. The system has been found to accelerate financial close by twenty to fifty percent. What this means is that deals can close quickly when run on the cloud as financial agents at the main office don’t have to wait for several weeks to get data from their subsidiaries. Increased efficiency can be expected by those running international business branches as far as consolidation of finances goes. Specific benefits expected when using a Cloud based computing solution are:
- Local and international taxation requirements can be met. A cloud solution can give you an embedded tax engine that could help you deal with several tax schedules across your branches. The engine is able to compute any type of tax.
- Few errors due to automation. Manual accounting results to various human errors. To get rid of these errors or minimize them, adopt a cloud-based computing system today. There will be no more spreadsheets or use of an obsolete accounting solution.
- Improve organizational performance. Cloud computing leads to better visibility due to several levels of consolidated reporting and KPIs (Key Performance Indicators).
- Easier currency conversions. With a cloud-based ERP system, you can do currency conversions with ease. The system will automatically capture currency exchange rates fluctuations and log the rates used the last time a conversion was done.
If you manage to get the best cloud-based solution, it will integrate with other applications you use for managing sales, inventory, customer service, HR and so on. At the same time, you will have a system that doesn’t need regular maintenance and one that doesn’t create multiple capital expenditures.
Choose Anaplan’s App
No matter how complex your financial consolidation role is, you can tackle it better with Anaplan’s app. In addition to spending less amount of time reporting, Anaplan’s app allows the user to take longer time analyzing their financial events. With it, customers can comply with GAAP and IFRS requirements and do XBRL reporting with ease. Furthermore, Anaplan’s app offers real-time reporting on consolidated data via SAP HANA (a type of SAP software tool) in-memory computing. If you have been looking for ways to automate your currency translation, reconciliation, subsidiary reporting and more, download this app today.