For businesses with multiple departments or parent companies with multiple entities, there are several advantages to financial consolidation. It’s no wonder that consolidated financial reports are required by Generally Accepted Accounting Principles (GAAP). But consolidation takes time — and it can be challenging (especially without the help of CPM software like Adaptive Insights).
Here are just 3 reasons why your company benefits from financial consolidation:
1. Performance At-a-Glance
For executives, investors, analysts and owners alike, financial consolidation is the single best way to view overall performance at-a-glance. Consolidating diverse financial reports into a single financial “snapshot” gives C-Suite, finance, and stakeholders invaluable insight into the parent company’s overall health. Without consolidation, it can be extremely difficult to assess financial performance among various subsidiaries.
> > Make the case: Consolidated reports are often preferred by stockholders and investors as a measure of a holding company’s top-level, bottom-line performance, and are a valuable way to make the case for investment.
2. Strategy
With financial reports siloed among multiple entities, charting your company’s overall direction can feel a bit like steering a ship with more than one map. Financial consolidation gives leadership the top-level insight they need in order to budget, forecast and plan more effectively.
3. Efficiency
By combining multiple reports into a single consolidated financial statement, finance has more time for strategic planning. Better yet, real-time consolidation by CPM software like Adaptive Insights accelerates the financial close rate and streamlines intercompany eliminations.
The mid-size to enterprise-level companies we work with frequently report that real-time consolidation via CPM software saves them days in the close process.
Looking to put the benefits of real-time consolidation to work for your company? Nuage is an authorized partner for NetSuite — the #1 CPM software for customer satisfaction according to Gartner.
