Maybe You Are Wrong 🤔?
… if you think implementing Automated Consolidation and Reporting in your Group or Investment Fund is too complex.
These are myths and misconceptions about implementing automated reporting and consolidation that we face repeatedly in meetings with clients or potential clients. Let's try to address them! Maybe you see something familiar here 😊:
🌀 Myth #1 - Automation is not possible because of different industries
“We have various industries with different, industry-specific charts of accounts, making unified format reporting in our Group impossible.”
Reality: It’s simpler than you think! 😊
Create a Group Chart of Accounts (COA) in the reporting system that accommodates all the industries within your Group or Investment fund – whether it’s lending, construction, retail, or others. Map local accounts to the respective accounts in the Group COA and start importing accounting data into the reporting system.
For a detailed and educational guide, see the article “Designing a Powerful Group COA for Automated Consolidation.”
🌀 Myth #2 - Automation is not possible because Group COA is not implemented
“We need to implement the Group COA across all entities before we can start automated reporting and consolidation.”
Reality: Not necessarily! 😊
Local COAs can be too detailed and represent local requirements irrelevant to group reporting or consolidation. A better approach is to design a powerful Group COA and guide your entities on the level of detail required. If Local COAs are less detailed, encourage adding new accounts and more detailed transactions. If Local COAs are more detailed, which is more than okay, map multiple local accounts to a single group account.
Explore more in the “Successful Implementation of a New Group COA Across the Group” blog post.
🌀 Myth #3 - Automation is not possible as there is no global ERP
“We need one global ERP system for all companies to proceed with automated consolidation.”
Reality: If it’s not broken, don’t fix it! 😊
If your companies are satisfied with their current accounting or ERP systems and they are well-customized, there is no need to switch. Reporting systems allow imports from various accounting and ERP systems. Emfino's data sources can differ for each legal entity – only provide full transaction data and Trial Balance reports.
Curious whether you need a single global ERP? Read the article “Do We Really Need Single Global ERP?” for more insights.
🌀 Misconception #4 - Achieving automated reporting and consolidation is very complicated and time-consuming
Reality: If you prioritize this process, you can do it in a month! 😊
How? This article, "Automated Financial Reporting & Consolidation in ONE MONTH!" details the steps to rapidly implement automated financial reporting and consolidation across the entire group.
🌀 Myth #5 - Automated consolidation and reporting is costly
Reality: It can be an affordable monthly subscription fee for a reporting system with no implementation fees or fees per user or legal entity. 😊
Request a subscription fee offer on Emfino Pricing page!
Comments