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Next Generation Financial Consolidations 8 At the same time, because one ERP system forms the back bone of the organization's systems and processes, centralization of core finance functions, such as accounts receivable or accounts payable, represent an efficiency opportunity to leverage one database of customers and vendors across the consolidated entity� Investing in today's world has grown more complicated as companies a empt to mitigate risk through various legal and risk management approaches. As companies structure minority investments, but maintain legal or de facto control, the system needs to consolidate these results as well within the integrated platform without further offline analysis. 3. Managing the Consolidation Process A cloud financial management system allows for all of our consolidation information to be fully integrated at any point in time. This puts all the data of the subsidiaries at the fingertips of the corporate accounting staff. This virtually eliminates the need for the copious emails and other forms of inquiry back and forth between those working in corporate accounting and those working in the various business units to gather the necessary information for preparing the consolidation. The corporate accounting staff now has drill-down transparency into the data of the business unit to enhance their own understanding of the financials as the results roll-up� Leading cloud financial management systems will also have the collaboration, and documentation tools built in. Collaboration tools, such as a chat functions and the ability to save electronic notes, enable staff to communicate easily with those working in the business units� Those conversations can be directly documented and a ached to the relevant accounts and reports. This puts the supporting documentation at the fingertips of whoever needs it and creates a permanent archive� This eliminates the cumbersome binders or the file directories full of spreadsheet backups li ering many servers today. Leading cloud financial management systems also bring greater visibility to inter-corporate transactions between entities� Because the data is self-contained inside a single system, the elimination and consolidation entries can be automated� Inter-company accounts are automatically reconciled and elimination entries posted to deal with inter-company transactions and balances� This mitigates the risk of missed postings of inter-company transactions on one side or the other�