Growing is the nature of business, so every company wishes to grow. But with business expansion comes the growing pains of financial integration that covers multiple divisions and subsidiaries along with worldwide locations. Rapidly growing companies face complexity related to foreign languages & currencies, taxation structures, accounting standards, reporting & compliance requirement and there comes the decision time – how to scale to meet challenges of multi-national financial consolidation?
At such a situation, companies naturally will consider old forceful methods. They would install new servers, back-up systems and ERP software at new offices around the globe and pursue IT teams to configure, implement as well as maintain those systems. Cloud computing provides a scalable model for refined financial consolidation, without the real capital expenditure. And by automating key accounting procedures, a cloud ERP solution lessens the risks of possible errors and delay of manual approaches to various charts of accounts.
Speeding Financial Close
Faced with requirement for fast execution, more and more mid-market businesses are turning to the cloud model for financial consolidation and gain impressive results. For instance, in a study of users of NetSuite OneWorld, a marked acceleration in close times was found. Financial managers at the headquarters rarely have to wait to receive data from their subsidiaries.
Market experts found that companies switching from non-integrating legacy and custom accounting systems to the NetSuite OneWorld can hugely expect to accelerate financial close times by almost 20%. It is also found that some customers expedited time to close by up to near 50%. Further, companies with international subsidiaries can also expect to enhance the efficiency and scope for financial management as well as operational data consolidation.
Financial consolidation using a cloud solution can also increase efficiency in different areas as well:
It can meet local as well as global tax requirements. An integrated tax engine enables you to effortlessly handle multiple tax schedule across subsidiaries for VAT, GST, general sales tax and from consumption tax.
Helps you manage currency conversion. It’s vital for your system to record conversion rates and provide important historical record about the generated sums. So look for a solution that will automatically update currency conversion and provide flexibility for manual overrides.
By automating complex accounting processes, you can reduce manual efforts as well as minimize errors while managing several spreadsheets. It also helps employees to focus on value-added analysis.
Since poor visibility hampers performance of the organization, the NetSuite cloud ERP provides improved visibility into financial operations.
Leading cloud-based financial consolidation solutions like NetSuite, integrates with complementary applications for sales management, ecommerce, performance, inventory management, support and more. A cloud solution enables a multi-national business to avoid capital expenditure as well as ongoing maintenance. The ability to consolidate multiple accounts’ charts creates a strong advantage to enterprises with separate business entities and global enterprises to take their productivity and visibility to the next level. Getting assistance from leading NetSuite service providers in the industry such as NetSuite Expert proves helpful in gaining visibility and other aspects.