What is Financial Consolidation Software?

Published on: 13 December 2022
Written by: Tridant

Are you operating as a consolidated group with multiple subsidiary companies and having problems consolidating the numbers from each subsidiary entity for your group reporting? Are you spending far too long on your consolidations and would like to free up capacity within your team and increase your visibility in the consolidation? A financial consolidation software is perfect for you!

Financial consolidation software is a solution that integrates with your existing financial systems to enable financial consolidation and data management. Financial consolidation software can help you automate and standardise your financial-close process, minimise errors, improve audit trail and save time.

The software typically includes prebuilt and configurable templates, a dashboard that enables you to track and manage your data, and advanced analytics for more accurate reporting. It is typically used to consolidate data from ERP systems, General Ledger and accounting systems, and other data sources into a central database.

The role of financial consolidation software

Financial consolidation software automates the three basic functions of the consolidation process - quickly and accurately:

  • Collecting: Pulling actuals directly from your GL, ERP and other transaction systems for your most recent reporting period into a single source of truth.
  • Consolidating: Performing complex accounting calculations to roll up actuals from different currencies, legal entities and more to produce accurate, timely consolidated financial statements.
  • Reporting: Producing timely, accurate financial, regulatory and management reports to guide smarter, faster decision making.

In short, financial consolidation software provides efficiency gains and timely, accurate numbers for finance, accounting, and executive teams to rely on for decision making.

Why do you need financial consolidation software?

‍A financial consolidation software solution can help you automate and standardise your financial-close process to reduce errors, save time and improve accuracy and visibility in your financial reporting.

It is important to understand that the data being reported in the financial close process is crucial for financial analysis, investment decisions, and regulatory compliance. Errors in your data, or the lack of timely and accurate financial reporting, can have serious consequences, such as rejected financing, reduced earnings, and reputational damage. Financial consolidation software can expedite this process and remove most of the stress from this challenging process.

Essential features of an effective financial consolidation software

When choosing a financial consolidation software solution, it is important to understand the key features and functionality that will meet your needs. Five key essential features of an effective financial consolidation software include:

  • Rapid deployment
  • Excel integration
  • Data integration
  • Purpose built solution
  • Finance ownership out of the box.

Fluence Technologies finance consolidation software includes all five of these features, making it the best consolidation software on the market for mid-market businesses. If you would like to discuss implementing Fluence’s financial consolidation software into your organisation, please contact us to set up a business discussion with our Fluence experts.

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