Consolidation is the process of combining multiple systems and databases onto a single platform, creating a simplified experience for employees.
If your company has expanded extensively and rapidly, it may make more financial sense to consolidate large operations such as financial reporting, budgeting, forecasting, and analyzing complex data. Talentia’s Consolidation Software can speed up this process for you and automate repetitive and time-consuming tasks, so you can focus on what’s most important in your business.
But… How much should you expect the cost of a consolidation software implementation to be?
We’re going to answer this question and more. So, keep reading!
When is it time to make the switch to consolidation software?
It’s important to evaluate your organization’s daily operations and determine whether your company would benefit from consolidating various business segments. The reason? Save valuable time and energy. Also, determine the components of your CPM budget, make a list of must-have features, and calculate installation costs.
Factors to consider with the cost of implementing consolidation software
1. Consolidation Software licensing fees
The cost of CPM software can vary based on the country where it’s purchased.
If your company has 1,000 employees, on average only 1% of employees will become users who will manage and maintain the systems in a company of this size.
Only 1% of employees will become users who will manage and maintain these CPM systems.
In other words, 10 of the 1,000 employees will become users of the CPM system. According to a 2022 ERP Report from Software Path, the average budget per user is $9,000, but this will of course depend on exchange rates and licensing fees in your country. In total, it can cost anywhere from $100,000 to $750,000 for full implementation with third-party software ranging from 10%-35% of total cost.
2. Justify Cost of New Consolidation Software
If you are planning to switch from existing software, you will want to consider the cost and choose the right features for your business. Not all modules will be a good fit for all businesses, so decide carefully.
Most companies choose to adopt a new consolidation software for the following reasons:
- Increase productivity.
- Improve business intelligence.
- Enhance data capture and analysis.
- Reduce errors in reporting and forecasting.
Talentia offers key features to enhance your user experience and improve your company’s outlook. Besides, our comprehensive platform ensures reports follow ESEF regulatory standards. These are only a few of the many benefits Talentia’s CPM software offers:
- Financial Close.
- Accounting Review.
- IXBRL Formatted Reporting.
- Budgeting Processes.
- Financial Intelligence.
Studies have shown that the easier a software is to understand, the greater the chance it will be adopted effectively. So, evaluate your staff’s ability to learn new software and increase your implementation budget in case they will require more training during the process.
Cost of consolidation software implementation: the hidden costs
On a final note, you may find you will need to rework some of your internal processes during the consolidation software implementation. Or you might want to change your initial customized package, which will result in additional fees.
In consequence, experts recommend building in a 10% contingency budget for your ROI projections to help with unforeseen costs and expenditures.
So, make the most of your business by implementing the right consolidation software; get in touch with us at Talentia and we will help you optimize performance with a solution that is tailored to your needs.
Building in a 10% contingency budget for your ROI projections to help with unforeseen costs and expenditures.