Five Reasons for Moving to Cloud Financial Consolidation and Close

September 25, 2023

As financial requirements become more complex, the need for efficiency is driving companies to consider moving to cloud financial consolidation. In a process where there is no margin of error, cloud-based solutions offer financial consolidation and close capabilities to ensure that every cycle is executed with the appropriate accuracy.

Discover 5 reasons for moving to cloud-based financial consolidation and close.

1. Better, faster and more efficient consolidation processes

Spreadsheets and traditional applications for financial consolidation and close fail to meet the requirements of increasingly elaborate accounting standards. Hence, many companies choose cloud-based financial consolidation software to benefit from the following:

  • Ability to consolidate multiple charts of accounts.
  • Reduction of errors and manual efforts.
  • Shorter and more efficient financial consolidation
  • Flexibility for integration with other cloud applications.
  • Scalability to respond quickly to changing business needs and growing data volumes.

2. Streamlining of financial consolidation processes

The streamlining of financial consolidation and close ensures accuracy and speed in the execution of the process. How can cloud consolidation software help?

  • It eliminates the challenges of working with multiple systems and is, therefore, suitable for multi-entity business consolidation.
  • Data is stored centrally in a uniform platform so that each team can work with a single set, rather than dealing with different sources and formats.

It ensures compliance with accounting rules and legal requirements by simplifying the reconciliation process.

3. Quick access to financial consolidation data

Financial managers can have immediate access to data from different activities, departments and subsidiaries to prepare consolidated financial statements. Moreover, the data loading process can also be automated by setting out a schedule, so that the system issues a notification once they have been integrated.

4. Easy configuration of consolidation software

Cloud financial consolidation and close solutions are easily configurable, requiring minimal IT effort and user training. Hence, the interface of these models can be navigated by both casual users and expert analysts, while their intuitive and logical process flow also makes them suitable for first-time users.

5. Financial consolidation process efficiency

Consolidated financial statements help stakeholders, auditors and investors understand a company’s finances. Financial consolidation takes place at multiple levels, which means that an efficient solution should take care of tasks such as intercompany elimination or currency translation, among others. This is how a financial consolidation and close cloud solution can enhance process efficiency:

  • It minimizes the risk of error and delay involved in the use of manual approaches to financial consolidation.
  • Using a preconfigured consolidation model helps the company meet global reporting requirements.
  • Real-time financial consolidation results in a faster close process and ensures timely reporting.
  • Companies can focus on the strategic dimension of their business while benefiting from enhanced data security and reduced operational risk.

Therefore, one of the best ways to ensure a more practical, transparent and collaborative financial consolidation and close process is by implementing a cloud consolidation solution. If this is your goal, Talentia’s end-to-end value-added services can help.