Make Your Financial Consolidation Process More Agile
By Brian Beyst - Apr 18, 2016
A Tepid Economy Drives the Need for Financial Consolidation
According to Federal Reserve Chair Janet Yellen, the US economy is continuing to show signs of improvement. Yet the global economy “is clouded by ‘weak growth, no new jobs, no high inflation, still high debt – all those things that should be low and that are high,’” says IMF Managing Director Christine Lagarde. And if we learned anything from the fallout of the Great Recession, it’s that our economy is simply one part of a vast web of interconnected economies.
Perhaps the most concise way to describe the present economic environment is to say that it is tepid. And such a view seems to be a significant driving force behind the results of the 2016 Finance Priorities Survey conducted by Financial Executives Research Foundation and consulting firm Protiviti. The survey indicated that the #1 priority of corporate financial leaders in 2016 will be to maintain margins and earnings performance. But also high on the list of priorities will be a continuing search for greater “precision and efficiency in their cash forecasting, period-end close, and related reconciliation and consolidation activities.”
The holy grail of financial consolidation is to pull together all the data from all departments and each separate legal entity and arrive at a “single version of the truth” in real-time. In today’s economic environment there is no other way to monitor a company’s margins, especially if your company has more operational complexity than a proprietorship that sells only one product or service.
Efficient Consolidation Protects Margins and Earnings
Working to achieve the necessary level of precision without high-powered consolidation software like Kepion Reporting, would quickly drive the efficiency of the finance department into the ground. Depending on the size of the organization, even routine period-close consolidation becomes a sliding scale of complexity. In a tepid economic environment, where opportunities or threats may arise with little warning and from unexpected places, developing greater efficiency and precision in the creation of a single, real-time version of the financial truth is critical. It may be the difference between maintaining margins and seeing earning performance plummet.
Financial professional can utilize any number of financial consolidation software packages. Kepion’s cloud-based platform has the benefit of being built around the way your company operates, providing the key information needed, at the level of aggregation required, to make sound financial decisions from anywhere within your organization. It’s the most effective way to maintain margins and earnings performance available to the financial professional today.