Consolidating financial statements across multiple #subsidiaries or #entities is a complex but necessary process for many #businesses. Using an Integrated Business Planning (#IBP) system can streamline and automate this consolidation, providing major benefits over manual methods.
At its core, financial consolidation aggregates financial data from different sources into unified financial statements. This gives #leadership increased #visibility into #performance across the entire #organization. Doing this manually with multiple #spreadsheets is tedious, time-consuming, and prone to errors. An IBP system takes this manual process and makes it #digital, #automated, and more #accurate.
A key capability of IBP systems for consolidation is handling #currencyconversions across different countries and entities. As data from international operations flows into the central system, amounts are automatically converted to the parent company's reporting currency. This removes the need for #financeteams to manually convert currencies element-by-element.
The system also automates #intercompanyeliminations, which remove transactions between entities to avoid double-counting revenues and expenses. An IBP system can be configured to flag intercompany balances and post eliminating entries according to accounting rules. This eliminates tedious reconciliation processes.
On the reporting side, an IBP system allows centralized creation and distribution of consolidated financial statements. It aggregates data from different systems and entities into unified reports such as consolidated income statements, balance sheets, and cash flow statements. Drag-and-drop reporting tools make it easy to create consolidated reports on the fly.
Overall, consolidating financial data across a multinational enterprise is greatly streamlined with an IBP system. Processes that once took weeks and months can be reduced to days or hours. This gives leadership more timely insights and frees up finance teams from repetitive manual work so they can focus on value-added analysis. #Integratedfinancialplanning and reporting is a powerful capability of modern IBP systems.
Using best-of-breed planning and #analytics solutions, we help managers #align their operational plans with their strategic #goals, empowering teams to become #collaborative, #insight-driven, and #adaptable.