What happens to your finances when your company merges with another company? Whether you are formally trained in accounting or not, consolidations can cause a real headache in terms of the time that you invest in their financials.
Building out consolidated statements in Excel can be time-consuming and, the more complicated they get, the more room there is for human error, even if your accounting skills are unmatched in the world. This means that you then need to spend a lot of time reviewing these statements to ensure no errors have crept in, adding more hours onto the load.
But this doesn't have to be such a complicated or protracted exercise. With the latest advances in cloud technology, there are tons of software solutions that can help you automate the consolidation process, saving you a ton of time, decreasing your stress, and ensuring accuracy. In this article, I'll look at the top 10 consolidation solutions available to you today so that you can try them for yourself!
What is financial consolidation software? 🧐
Before we get into it, what exactly is financial consolidation software and how does it work? Financial consolidation software is software that automates and simplifies the process of creating consolidated financial statements.
For large organizations that consist of multiple branches, consolidation software imports financial data from all entities. It also maps general ledgers to a single chart of accounts and normalizes consolidated data according to regulatory rules and requirements.
In the case of international organizations, consolidation software will also roll data into the group’s common currency.
Why is consolidation software important? 👀
Using spreadsheets for the consolidation of the financials of large companies prolongs the process and leaves room for human error.
Consolidation software connects disparate parts of an organization. Companies with complex ownership structures can form legal entities, reporting units, and hierarchies using best-in-class consolidation software.
Consolidation software allows you to compare entity performance. Organizations with complicated, worldwide organizational structures may manage numerous currencies, mergers and acquisitions, accounting standards like IFRS and GAAP, and roll data up to the group level more easily with the help of consolidation software.
In addition, consolidation software gives finance an aggregated view of consolidated data that teams can use to compare entity performance line by line.
The 10 best financial consolidation software providers 💡
Now that we've considered its uses, let's unpack the top 10 financial consolidation software options that you may want to consider for your organization or your client's organization.
1. Syft Analytics
Who they are: An award-winning financial reporting and data analytics software that empowers you to build anything from simple reports to complex consolidations across multiple currencies.
Features
You have the ability to:
Combine entities from any data source;
Change currencies and ownership on the go;
Combine other consolidations for the ultimate corporate structure;
Add new entities as a business grows and accommodate acquisition and disposal dates;
Offset accounts as well as inter-group transactions to create true consolidated financial reports; and then
Visualize your consolidation makeup as well as the detailed accounts within the consolidated entity;
Report on consolidations.
What's more, Syft gives you the ability to turbocharge your consolidations with high-scale infrastructure capabilities.
For more information, read the guide to consolidations here.
2. OneStream
Who they are: An intelligent finance platform that delivers business value by unifying financial and operational processes and data and replacing silos of CPM software, spreadsheets, and disconnected point solutions.
Features
One set of data drives multiple GAAP/IFRS reporting formats;
Cell-level audit trails provide control without impacting performance; and
Out-of-the-box support for complex ownership and equity pickup.
3. Planful
Who they are: Software that helps:
Finance and Accounting plan, close, and report with speed and accuracy;
Human Resources build winning people strategies;
Marketing plan for and deliver more business value; and
Others across the business thrive in any environment.
Features
Microsoft Office integration;
Multi-currency;
Performance support; and
Predictive modeling.
4. Board
Who they are: A tool that aims to empower you to plan smarter, drive outcomes, and leave transformation.
Features
Data recovery
Granular security
Server clustering
Multi-user concurrent data entry
Planning and forecasting
5. Workday Adaptive Planning
Who they are: Enterprise planning software that moves you forward.
Features
Elastic Hypercube Technology; and
Open to all systems.
6. Centage
Who they are: Centage makes financial planning, budgeting, and analysis easy and accessible.
Features
Planning;
Budgeting;
Forecasting;
Reporting; and
Analytics.
7. Prophix
Who they are: Prophix is a cloud-based Consolidation Software that helps finance managers in budgeting, forecasting, and reporting while taking into consideration the total data of the company, it saves the time and cost of financial closure.
Features
Budgeting and planning;
Reporting and analytics;
Consolidation and close;
Workflow and automation; and
Virtual financial analyst.
8. Wolters Kluwer
Who they are: Wolters Kluwers is a global provider of finance and software solutions. With the help of Wolters Kluwers, one can get assistance in tax, finance, audit, risk, compliance, and regulatory sectors.
Features
Tax preparation and compliance;
Financial solutions;
Data-driven decision-making tools; and
Helps organizations in risk management, increasing efficiency and producing better business outcomes.
9. Cipher Business Solutions
Who they are: CIPHER Business Solutions is a global consulting and technology firm that aims to provide software implementations for financial consolidation, budgeting, planning, and business analytics.
Features
Strategic planning;
Financial consolidation;
Budgeting;
Planning; and
Business analytics.
10. Rephop
Who they are: Rephop is a cloud-based financial solutions software that provides features like financial planning, consolidation, and forecasting. Perfect for small to medium-sized enterprises that do not require bulky features, with an easily understandable platform.
Features
Audit Trail;
Budgeting;
Forecasting;
Consolidation;
Profit/Loss Statement; and
Balance Sheet.
Cons: Does not support features like financial reporting for multi-company, data export/import, cash management, and access control.
Closing thoughts 💭
While company mergers can pose significant challenges to financial management, the advent of advanced cloud technology and specialized financial consolidation software has made this process more efficient and error-free than ever before. By automating tasks that took up a lot of time and were prone to human error, these software solutions not only streamline the consolidation process but also offer comprehensive features such as multi-currency support, data visualization, predictive modeling, and in-depth reporting capabilities.
As evidenced by the diverse array of options discussed in this article, it's clear that organizations of all sizes and complexities can find tailored solutions to fit their unique needs. Embracing these innovative tools can not only save time and reduce stress but also ensure the accuracy and reliability of your financial statements, allowing your organization to focus more on strategic decision-making and sustainable growth.
I hope you found this article informative! If you'd like to find out more about Syft Analytics, please visit our website.