Next Generation Financial Consolidations for SaaS Companies 4
The Challenge of Consolidation for Multi-Entity SaaS Companies
Consolidations have been a routine part of many corporate accounting departments for as long as most
can remember. However, as the SaaS industry continues to undergo significant changes so has the
complexity and compressed timeliness of consolidations�
Consolidation complexity is driven by factors such as:
• Expansion of perpetual and SaaS offerings and professional
services across regions and states�
• Geographic growth of subsidiaries across states, regions,
and around the world with the advent of globalization�
• The varying and changing nature of accounting rules in
different jurisdictions.
• Emphasis on growing the business through both organic
new ventures or by acquiring others.
• Increasing inter-relationships and inter-company activities
between entities within a control group�
The timelines for consolidation are compressing and are driven
by factors such as:
• Tightening reporting deadlines and the desire to improve the
timeliness of reporting with financial stakeholders.
• Transparency of relevant information about the business to the
financial stakeholders.
• The need for a well documented and well controlled
consolidation process that preserves and enhances financial
reporting integrity�
• The need for up to date and accurate information that
provides true insight in to business performance and potential
adjustments to strategic direction.
These factors conspire to make the consolidation process ever
more challenging for many corporate accounting functions�
