Next Generation Financial Consolidations 6
In a recent study by Financial Executives Research Foundation and Robert Half, 58% of companies
manually reconcile accounts. Only 22% of companies in the US use so ware to reconcile accounts
1
�
58% of
companies
manually reconcile
accounts
22% of
companies in the
US use so ware
to reconcile
accounts
1
This multi-stage consolidation
process is time consuming and
error-prone, no ma er how well
organized, communicated, or
executed the process becomes�
To preserve financial reporting
integrity, checks and balances
along with manually prepared
account reconciliations using
spreadsheet files and print outs
are o en assembled to prove
the numbers�
Difficult challenges can arise when late entries or other adjustments get posted and this process is
repeated. Updating the consolidated results for a late adjustment is o en a significant undertaking using
this type of process. Consolidated results are o en unknown until the very end of the close process.
No one disputes that the old way of preparing a consolidation no longer works, it's extremely inefficient
and comes with greater risk. Reliance on spreadsheets and manual procedures is what in reality holds
many finance functions back from playing greater strategic roles in their organizations. While clinging
to the manual processes and spreadsheets of the past are comforting for many finance people,
it's important that everyone recognizes that approaches to financial consolidation have advanced
significantly in recent years. There is a be er way to design and architect your consolidation process.
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Executives Research Foundation and Robert Half
