Taking this last point into consideration, finance leaders have several priorities, many of which focus on critical team activities.
Let us consider, for example, consolidation. Traditionally, Cfos focus on risks, but at present the focus is on finding new opportunities.
But how can we improve this processi?
The consolidated can be long and laborious, especially if we are talking about a group context with different entities. It is necessary to collect the necessary data, make sure that all the inputs are accurate and be able to meet the deadline for closing.
In 2021, a year characterized by Covid-19, the consolidation process became even more complicated, as many companies have suffered a series of turbulence.
Unfortunately, to date, many organizations still rely on an outdated approach, in which data is organized into unrelated silos. This turns data into inaccurate information.
Others still use Excel, although the risk of human error is high and there is a lack of intelligent insights.
The best view in this case, is definitely to adopt a solution that allows you to have a single point of information management, able to connect to disparate data sources. This translates into the possibility of having valuable strategic data, useful in planning and financial forecasting.
As you know, data accuracy is crucial in the consolidation process.
In its development, financial teams use data from the previous month, cyclically repeating this activity, updating it accordingly.
Automation in this area helps maintain high precision and accelerate the entire input, offering efficiency and cost optimization.
By investing in the right technology, you’ll have full visibility of the process at all times, and you’ll be able to monitor progress in real time, so you can improve decision-making, and keep an eye on business performance.
To improve the consolidation process, another (no apostrophe) certainly useful point is to provide its stakeholders with relevant information.
In fact, when you give the people involved the opportunity to view the relevant data, these (people) are able to influence critical decisions, also bringing out trends not previously noticed.
Onestream is a software that allows you to automate the aggregation of financial data and use it from a single point, so as to make financial consolidation easier and accelerate the closure.
Would you like to know more? Contact us!