In our experience at SSi Consulting, we’ve met a lot of Microsoft Dynamics SL users who are responsible for consolidating subsidiary financials for a parent company. Combining company data from more than just one legal business entity, especially with multiple currencies involved, can be challenging without a powerful financial reporting and consolidations software. Data has grown so much in terms of the amount and the importance related to making decisions about the future – and it’s only going to become bigger, so it is not surprising that plenty of executive teams are looking for a business user friendly tool for the routine task of consolidating data into a singular set of financial reports. If you are in charge of consolidations for a parent company and you are using Microsoft Dynamics SL, this article is for you, discussing your options for today’s smartest and easiest to use software offerings.
Let’s begin with a definition, shall we? Financial consolidation is the task of aggregating and clearly reporting operational and transactional data from subsidiaries into one unified set of financial statements for a parent company. These reports bring together subsidiary information that paints a complete picture of the parent organization’s finances in a straightforward report. Financial consolidations typically involve currency conversions with diverse currencies, inter-organizational transaction eliminations, and any additional manual adjustments that need to be done in Dynamics SL or right inside the financial consolidation software, so that you can capture a complete picture of the parent company’s financial health. There are several reasons that people are looking to purchase a modern consolidation solution, but a couple stand out to us.
At SSi Consulting, the top two reasons that customers have reached out to us for one of today’s automated consolidation products both involve age. Some companies would prefer to move on from their more mature consolidation software because they are too complex for their end users to manage, like Hyperion or Cognos TM1. Others are interested in getting rid of older technology because they are too simple to meet modern business needs, like FRx or Management Reporter.
We talk to COOs, controllers, and other finance folks all the time who are overseeing multiple subsidiaries with Dynamics SL around the globe for a parent company. These professionals are charged with meeting domestic and global accounting standards, in addition to currency conversions, like the International Financial Reporting Standards (IFRS) to Generally Accepted Accounting Principles adjustments (GAAP), typically known as IFRS to GAAP. Some consolidation software comes equipped with flexible sub-ledger analysis functionality and is a part of a comprehensive suite of Business Intelligence (BI) modules, like ad-hoc report writing, financial planning, dashboards, and data management. Let’s discuss exactly what you should be seeking in a financial consolidation tool, particularly to upgrade your Microsoft Dynamics SL experience.
To continue learning more about the best consolidation solution for Microsoft Dynamics SL customers, read the rest of this article here.