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08 Feb

Posted at 11:22h in Digitalization

Our main goal as finance professionals is to deliver accurate reporting. To do so, our tools for managing the reporting must help us facilitate fast and accurate results. In this blog post, we will look at:

  • What tools you should have in your digital tool belt.
  • How automating certain tasks of the reporting can increase efficiency.
  • What software to look for when acquiring new software for your digital toolbox.

The 3 must-have types of tools

To deliver precise, on-time financial reporting, our finance experts recommend the following tools:

  1. A budgeting and forecasting tool (such as Phocas) is important to ease your job of predicting. This tool is becoming more vital to have in your toolbox since we are living in uncertain times, and an outlook for the business’ future becomes essential. Questions like: What assets to develop, where to cut the budget, and how to strengthen the position on the market are important to answer. To do so, the board and management need your data to build their decision on. A proper budgeting and forecasting tool will ensure you can provide decision-makers with the outlook needed to ensure a profitable future.
  1. A consolidation & reporting tool (such as Konsolidator) is the engine of your reporting machine. And thus, this software ensures that all your data is processed and correctly handled, so you don’t spend your precious time finding and correcting errors. Instead, the consolidation and reporting tool will enable you to dive deep into your data and deliver good management reporting. Once you get the extra time to dive deep into your data and pull out interesting results, the next tool on our list becomes very important to have in your toolbox.
  1. A visualization tool (such as Power BI) is important for showcasing interesting results. That is so since we often have to explain our data to people outside of finance. Since not all within the organization have the time or skill to look into a data-heavy spreadsheet, a visualization tool is of great help. So, when you want to make a clear point about the development, you see in the output of your processed data this is the tool for driving financial proposals.

These 3 tools are simply the must-haves of finance professionals. But there are different ways of acquiring them and different types of software. So how to know which one to choose? In the coming sections, we will talk about what software is suited for finance and why you should automate some aspects of the reporting besides the above tools.

Acquiring software for finance

Getting software to do the job for you can be defined as automating tasks. And you will find many aspects of the reporting you can easily automate. We have an extensive list of repetitive, data-heavy, and redundant tasks in finance. Nevertheless, some tasks just have to be done to complete the reporting process. In this section, we will discuss the benefits of automating these tasks and the different types of software for doing so.

The benefit of automating certain tasks

The huge benefit you gain from automating tasks is time, which is often a limited resource in the finance function. When we talk about automating tasks, we mean removing repetitive, redundant tasks from your workflow. Basically, we talk about taking a task like manually discovering and retyping a broken formula and letting a computer do the job.

If you have software in place to relieve your workload within certain aspects of the reporting process, you will have plenty of time for the financial analysis. Which, in the end, will benefit your business and stakeholders. Hence the benefit of automating repetitive, redundant tasks.

Benefits of using cloud software

Cloud software provides several benefits compared to non-cloud software. Below we will list a few of them and explain how cloud software can help you in your daily work. What is important to understand is that cloud software work like apps. That means that cloud software easily integrates since all you need is an API or built-in feature to make two pieces of software link with each other. For instance, you find the Cloud consolidation and reporting tool Konsolidator integrates well with Xero’s cloud ERP system.

Cloud software provides benefits such as:

  • Quick access to your data: All you need is internet access, and then you can access your software and data whenever and wherever you want. This makes working hours more flexible.
  • The latest software updates: No software maintenance is required on your part. Your supplier will handle this, and you will get the updates for free as they are released.
  • Lower cost: Most cloud software is based on a model where you pay a monthly subscription. Making the cost low and easy for you to quit the software if you no longer need it.
  • High level of security: Your supplier will handle the security, and tech companies are experts on the security level. And have skilled employees dedicated to this task only.
  • More efficient workflow: Most cloud software has built-in multiuser functionality as a standard. This means several employees can work in the same program doing different tasks without affecting the work of their coworkers.

All the points above embrace the essence of automating tasks, which makes the workflow more flexible, efficient, and smooth. Cloud software is becoming the new normal – not only in finance but in the software world. So, if you are thinking of automating some of your tasks through software, we suggest you choose cloud software.

Examples of cloud software in Finance

Here you will find a list of cloud-based software to use in the finance function.

  • Visualization tool (Power BI)
  • ERP system (Xero, Economics, QuickBooks)
  • Planning tool (Outlook)
  • Budget and forecast tool (Phocas)
  • Consolidation & reporting tool (Konsolidator)

Create a strong digital toolbox to succeed in driving decision-making

To create a strong digital toolbox, you must have a:

  • Consolidation and reporting tool
  • Visualization tool
  • Budgeting and forecasting tool.

The 3 tools will strengthen your performance as a Finance Professional since you will be able to deliver much more precise, on-time financial reporting. Furthermore, you will gain time for much more creatively and cognitively demanding tasks, such as diving deep into data and presenting business proposals based on your financial insights. Thus, helping management and the board to make decisions that will strengthen the business. Via the help of your digital toolbox, you will be the driver of data-driven decision-making.

20 Dec

Posted at 07:35h in Digitalization

The challenge of using multiple ERP systems in your group

Whether it is due to mergers, acquisitions, or local regulatory demands – many organizations are using multiple ERP systems or accounting systems today. But whatever the reason, it is essential to ensure that it doesn’t challenge the parent company to create timely, consolidated statutory financial statements. From our experience, there are five different pitfalls for your group accounting when you use numerous ERP systems. You can read them below.

#1 DATA ACCURACY

Knowing your data is one of your most significant advantages in this digital age. However, one challenge that can minimize this advantage in consolidation and group accounting is time lost collecting data from multiple ERP systems. If your team loses valuable time translating data to fit the parent company, you will not have time to analyze the data. 

It is common for many companies to complete the consolidation process with the use of a complex series of spreadsheets, presenting additional challenges such as:

  • Data safety due to sharing across the organization
  • Personalized excel templates for managers at varying levels and across country borders.
  • Constant delay in collecting and validating data. 
  • Human errors: you know it, and I know it – with manual data handling, there is always the risk of errors. 

#2 TIMELY RESULTS 

Delivering data in time is a constant challenge. But it becomes an even more significant challenge with multiple ERP systems. Since collecting and validating data can take so long, results rarely are current enough for agile business control. Also, many companies who share ERP systems have the opportunity to analyze every subsidiary for trends, both on profit and loss, early in the process. This delay often arises when sharing data manually back and forth. For example, if a number doesn’t add up – it has to be sent back to the subsidiary, which then tracks the error and validates their new information before sending it back through a new Spreadsheet. And so, the long journey begins towards an untimely result, where the management team feels more reactive than proactive.

#3 RESOURCES 

Are you confident that your resources are fully optimized? We can probably agree that the finance department’s key people can use their time better than chasing numbers through multiple systems. For example, performing higher-value activities like analyzing business insights. Instead, the case of time lost on compiling data across multiple ERP systems is a common occurrence that affects your best resources and delays the organization. So if there is one area where you should not lose your competitive edge, it is on an askew use of your most valuable employees. 

 #4 LACK OF INTEGRATIONS

We experience time and again that significant errors arise when systems do not integrate well. Lack of system integration is one of the most problematic pitfalls and will influence almost all the other challenges mentioned here. 

As you separate financial statements from subsidiaries, mergers, and acquisitions, which all contain foreign currency translations, and intercompany transactions – the challenge of using multiple ERP systems truly comes to light. The consolidation process is complex, no matter country or region, and prone to constant error-checking. And when it involves insecurities about the number of validations across the group and its subsidiaries, it only escalates the complexity. The reality is that there is no way around data integration if you want to stay relevant as a finance professional. 

However, multiple ERP solutions don’t always have to be viewed as a hindrance to effectiveness, optimization, and business agility when they all integrate into the same system. E.g., cloud-based software enables you to integrate your systems quickly. In groups with subsidiaries in several countries and various ERP systems, using one software to standardize and automate the consolidation ensures everyone in your team, across borders, uses the same methodology in the review or preparation.  

#5 MAPPING OF LOCAL ACCOUNTS

The last pitfall to avoid is the trouble with local charts of accounts and the lack of proper mapping. Commonly, the local charts of accounts do not match the requirements of the consolidated financial numbers in the parent company. Very simple – because we have different statutory requirements across borders. But the difference in requirements can also influence the wording of dimensions. Therefore, it is essential always to ensure that your mapping is complete and standardized before starting the consolidation process. Precisely this key point we will go over in our webinar, where we narrow in on:

  • The trouble with the local Chart of Accounts
  • The accounting principles and structure of the parent company
  • Mapping/Tagging
  • Handling Group Data
  • Localization

Standardize your consolidation even with multiple Systems

Learn more about how to ease the challenge of handling multiple ERP systems across the group, including:

  • How you upload data from different ERPs in your consolidation
  • How you can ensure correct consolidation in a group that uses many different sets of accounts and reporting entities

Read more about our solution or book a meeting with our team at Konsolidator.

15 Dec

Posted at 10:40h in Digitalization, Excel Consolidation

Do you trust your data? And are you willing to live with the financial implications your errors create for the annual report?

In a digital age like ours, technology develops rapidly; it goes not only for Finance but for all industries. New and advanced technologies continuously become available to empower us. And where we see the most significant impact is in the repetitive processes of our daily work. Here, technology truly increases our work’s quality, flexibility, and efficiency – while saving us time. However, looking at Finance’s digitalization, Excel seems to act as a stop block for going digital when making the annual report. But why exactly? Especially since research shows that almost 90% of all spreadsheets contain errors – 90%! Just take a moment to digest that.

We often think our own spreadsheets do not fall in this statistic. But with a 90% error rate, we fool ourselves if we remain in this belief.

In the words of the stoic Roman philosopher, Seneca: To err is human, but to persist [in error] is diabolical.

While you keep that in mind, let’s move on a bit and look at the most common and prominent errors when using Excel for the annual report.

Why making your annual account in Excel is a tedious, time-consuming task

  • Excel is highly prone to fundamental human error (remember the 90%). And you will make the same errors again and again
  • Excel quickly gets out of control as different versions circulate
  • Excel lacks transparency as it fails to show a complete audit trail and documentation

You probably have more errors to add to this list, but we are sure you will get the picture by now.

So, with these errors in mind, let us pose some questions to you. What is your reason for using Excel for the annual report? Does Excel live up to your needs and requirements? Do you trust your numbers? Do you have the documentation you need? Or do you have to go over your data multiple times and confer with your subsidiaries on an ongoing basis?

Stepping into the digital era where automation and standardized process tools are a part of your everyday life is a true game-changer. And that is what you will experience with software for financial consolidation and reporting. Regardless of size, every group must make an annual report at the end of each financial year. If you are using Excel for this, you already know the tedious and time-consuming process of looking through numerous sheets to get an overview of the financial data for the past 12 months. But it is not only in the annual report that Excel plays a big part as a time-stealer. Also, every month or every quarter, the financial consolidation and reporting in Excel is extremely time-consuming due to the number of errors the spreadsheets accrues.

What automation can do for you

Imagine for a second that instead of using Excel, you have a database that automatically saves and updates all your financial figures and calculations for your reporting. All the documentation is visible, and you have a full audit trail – meaning there is a complete overview of where the numbers originate. In this scenario, transparency makes the annual report much faster and the workflow smoother. The reason is that instead of looking through numerous sheets, you can draw the numbers you need from one database. Also, this transparency makes it unnecessary to check your subsidiaries’ financial figures. Furthermore, the system finds the errors for you. As a result, you don’t spend much time on error-finding but can go directly to correcting the errors instead.

Even though this scenario might sound too good to be true, the reality is that it is not.

Automating and standardizing work processes, like your financial consolidation

The result of standardizing and automating repetitive processes is a more smooth, efficient, and flexible workflow. For example, if the financial consolidation process is automated, you can reduce consolidation time by approximately 50% by eliminating:

  • Manual controlling and uploading of your subsidiaries’ reporting
  • Error-checking a spreadsheet, too many hands have edited
  • Manual calculations like:
    • Exchange rates adjustments
    • Intercompany eliminations
    • Non-controlling interests
  • Inaccuracy in financial data

The extra time you gain enables you to make room for other value-adding tasks, like in-depth financial analyses and counseling of your management. You can better influence your group’s decisions and not just deliver the financial figures. Simply put, your consolidation will ‘just’ be another report.

If you are still clinging to your Excel spreadsheet for your financial reporting and consolidation, you must have an excellent (and unknown) reason. But if you have yet to come up with that exact reason, then you are most likely well on your way to leaving Excel behind and saying hello to the digital age of Finance – just like your fellow CFOs, Finance Managers, and Controllers around the globe. 

Do you want to know how to enter the digital age by implementing financial consolidation and reporting software? Then book us for a short product tour here.

Authors:
Martin Birch, Finance Business Partner at Konsolidator and former Chartered Accountant from Deloitte.

31 Oct

Posted at 09:20h in Digitalization

What is the number one most important thing in the CFO digital toolbox to enable error-free annual reports? The easy answer is; you need to have transparent data and complete control over your data flow to prevent errors. Having control over your data flow means knowing exactly where your data comes from and enabling a streamlined reporting process throughout your group. Knowing the origin will eliminate hours of coordinating with subsidiaries, error-checking, and endless editing. Even better, it will also ensure that your financial reports build on high-quality data and that you, as a CFO, can do what you do best: Be an advisor to management and the board.

So, how to build a dataflow that ensures you can deliver in-depth financial statements based on an accurate data set? We will go through 3 simple points to help you develop your smooth and transparent dataflow—the essential part of the CFO Digital Toolbox.

CFO Digital Toolbox: Building transparent dataflow before the annual account

#1 Workflow automation

First up in the CFO digital toolbox is workflow automation. If you have not yet automated any processes in your workflow, now is the time to consider doing so. An excellent place to start is in ‘the gathering of data’ since if anything goes wrong here, it will affect the entire output.

The risk of not meeting the reporting standards is much bigger when keeping the reporting process manual. If you are gathering your data manually, you must ensure that the methods of doing so are streamlined across your group to meet reporting standards. One simple miscommunication and the data you get might not live up to the standards needed for your reporting.  So, why use automation to collect data? A straightforward answer can be that your time is worth more when analyzing and working with the data than being an error detector.

By automating specific reporting tasks, you ensure that you get the required data instantly instead of wasting time checking that data is accurate and collected correctly. Automating these reoccurring and essential tasks, essential to the reporting but not do not require your specialist skills to be solved, will free up time for analyzing and evaluating data. Thereby, you can influence the decision-making and really impact your business.

Automating tasks enables you to quickly get some things done (like checking if all your VAT codes are valid). You will remove redundant, repetitive tasks and free up time to dive into data and see what actions to take to futureproof your group – something directors will thank you for in the end.

#2 Data warehouse

To build a dataflow that runs smoothly, you also need to look at where you store your data. Is it in a static spreadsheet, or is it in software that can quickly support you and deliver what you need when making financial reports?

If you are currently storing all financial data in Excel, you need to consider if this continues to be the right fit for your group. If you expect growth, it might be a good idea to look for alternatives to spreadsheet storage since the more data you store, the easier it is for your spreadsheet to break and lose the overview.

By storing your financial data in software built for the task of holding and handling a significant amount of data, your team gains several benefits:

  • It gives you more valid data, which can be accessed and processed quickly.
  • Fast and accurate financial data increases credibility and trust in the data within the group and among shareholders.
  • You can quickly locate and pull specific financial figures from your database whenever you, management, or stakeholders need it.

An online data warehouse built to handle large data sets enables a more efficient workflow and transparency in your CFO digital toolbox. With all your data gathered and managed from one place, you can trace data back to the source, process it, and send it without losing the overview. An online data warehouse is valuable when building transparent and smooth data flow.

#3 Data Integration

Communication is the key to outstanding financial reporting. That also goes for your digital tools; if your software doesn’t talk together, it will be hard to create the transparent and smooth data flow needed for futureproofing your reporting. Integrations ensure that data can smoothly move data back and forth between the digital tools you are using.

This can prove to be an advantage, especially if you are expecting growth or new acquisitions in the near future, as your data will increase. The need for several different software increases when operating with an increasing amount of data. Agile data integration becomes an interesting factor when using multiple digital tools. If your systems do not integrate, the data load can increase to a level that can be hard to handle manually. Eventually, it can result in you and your team drowning in data and communication overload.

A smooth and transparent data flow can be your lifeline when the data flood occurs. And here is agile data integration, a key element. To avoid losing the overview, let integrations do the manual work of transporting data from one system to another, so you can concentrate on looking at the bigger picture of your business that data provides.

Implementing data integration does not have to be an expensive or difficult project to take on. Start with the systems you are currently using and working with daily. Look in their app store to see what other software they connect with to get an overview. For instance, look at how to get data from your ERP system to your consolidation or reporting tool. Take small steps and when you have something worthy of showing management, then present it so they can see all the benefits of agile data integration to create a smooth and transparent dataflow.

The success of the CFO digital toolbox depends on your dataflow

So, the conclusion is that to gain the absolute maximum of your digital tools, you must consider implementing the 3 points mentioned above in your reporting to ensure a smooth and transparent dataflow. Write these 3 points down, take a meeting and go through where you see some gaps in your current workflow and elaborate on how each subject can contribute to filling these gaps. That is the first step towards building up a digital toolbox. Once that is in place, you will discover a considerable difference in your output, and your management and board will thank you for your precise insights.

If you are interested in other digital tools to upgrade your workflow and reporting, then look at how RPA for instance can help you and your team. Or watch our webinar. 

21 Jul

Posted at 09:23h in Digitalization

The mass migration from complicated systems to the modern digital eco-systems

Last month we went to the International Accountancy Forum & Awards – a brilliant event for modern accounting and a chance to bring together accounting firms with industry bodies, advisors, and technology vendors. 

It is also a chance to discuss the key themes impacting the sector and its growth opportunities by mixing our various backgrounds. And this year, many talks went around “How we best digitalize the modern practice,” with our own Lianne Gatti talking about the Citizen Technologist – a theme we think is interesting to share. 

Is it possible that we all have become Citizen Technologists without realizing it? And if the answer is yes, how can we harness that power best in our finance team? 

Let’s start with what the Citizen Technologist means

A Citizen Technologist is “The person in your organization who understands the close relationship between technology, people, and policy/procedure.” 

We are starting to hear the term Citizen Technologist more often and applied to different things. But in its very essential term, “A citizen technologist is a person who works with the intersecting effects of technical architecture, social norms, and policy.” In comparison, you might have heard about the Business Technologist. But where a Business Technologist comes from the tech world, a citizen technologist has a tech mind but comes from the team they are a part of. For example, a Citizen technologist in Finance has a finance background but a hand on the tendencies and trends in tech. Simply said, we could all turn into one, which also is apparent in one of Gartner’s research studies states that 71% of executives say their employees are more digitally mature than their organizations.

So in some ways, we have already started, but our organizations are not following.

Why are we not modernized yet? Or are we?

At Konsolidator, we talk with many finance people across different markets and industries. We are helping to solve problems for our clients and hear similar themes all the time. We do need to digitalize, it is critical for staff and customers, and we need to be able to embrace the young generation at work. This is not just tech; it is the social expectation of tech. Everyone knows technology’s impact on business, lives, and society. 

So why are we not modernized yet? Or are we? If you look at your phone, you could probably find more than 15 apps you use regularly. It can be everything from apps for Shopping, Sport, Banking, Games, Social, Kids… the list goes on! But if you are asked if you can locate your paper diary – that might be a bit more challenging. 

We want to share some of our learnings from the opposite side of where you sit; our team of advisors all come from the finance industry. 

Why Now? 

At IAFA22, there was much talk about diversity but also an increasing need to create an ‘all embracing’ culture encouraging the information exchange between young and old. Following this, one area, which really stuck with us, was the focus on modernization being more than embracing new technology to become digital; it is about a shift in mindset for everyone in the accounting industry – and we are not there yet.

Fall behind the curve, and you are losing your competitive edge, and with the ‘Great Re-Shuffle,’ you are losing your appeal for talent. Let tech enable the ‘born in the cloud’ generation to produce smart work, but not forget that the older generation can be tech-ready too. 

This development in Finance is even more crucial; we depend on error-free reporting. Data is the new customer – but without tools to sort and interpret this data, we land in a minefield of manual errors and reactive behavior. At the same time, we see the competition, which implements a digital mindset, move forward at the speed of light. All because there is a lack of time and resources to look into digital opportunities. Organizations cannot rely on IT alone; why embracing a Business Technologist or a Citizen Technologist can drive the needed change. 

So the question is not If?! It is how, when, and what. 

Why is a best practice digital eco-system so important?

Going back to the numbers from Gartner. If 71% of executives say their employees are more digitally mature than their organizations, we must consider why? What is it that makes us maintain existing infrastructure, which cannot keep up with modernization? Probably because it seems too comprehensive to find a system that fits all your requirements – and us in Finance we like to know every number and result before choosing something. But this is why a digital eco-system is so essential; there are many possibilities to create a digital eco-system that focuses on integrations, not on how much ONE system can bring with digital development today. 

Say you need an ERP system, a consolidation system, and a reporting system – the more you try to incorporate everything, the larger the system gets and the more difficult it is to implement, learn, and maintain. With the cloud, the supplier looks after the software, making it simple to use, and it can integrate with everything you have. This way, you avoid the queue at your IT department, complicated implementations – and even the business technologist. Instead, you can choose systems based on your exact need. No more, no less.

Can a Business Technologist or Citizen Technologist Help? 

When we talk with customers, we see a high amount of finance professionals who want to remove manual processes and book a demo, but then time and resources hit. Not because the implementation time is long, but because it can seem difficult if you go in with the mindset that you need to learn everything. In these cases, business technologists might be something to look into. It is a decentralized IT employee who builds technology capabilities for internal teams only. We all need to turn into Citizen technologists, but it is a place to start embracing technology and strive toward a digital transformation. Their skillset varies from data scientists to developers, but a common factor is that they have their finger on the pulse and understand digital trends that create efficiency. 

THE MOST IMPORTANT PART: Because they work closely within your department, they understand the Finance function, your digital eco-system, and your operations. Their primary focus will be to optimize your team and their work tasks – not the entire business. 

A good business technologist works harmoniously with IT departments regarding security and innovation. It’s a strategic role that equips and empowers non-IT resources to build digital capabilities. The Business Technologist can often conclude digital initiatives faster and release value quickly. When that is said, we understand the value of a Business Technologist. But the true road to succeed in the digital eco-system and an all-embracing culture where the entire finance team slowly will gain a natural tech skill set, i.e., The March of the Citizen Technologists. Citizen technologists, but it is a place to start embracing technology and strive toward a digital transformation. Their skillset varies from data scientists to developers, but a common factor is that they have their finger on the pulse and understand digital trends that create efficiency. 

Conclusion

Citizen technologist or not – the mass migration from complicated systems to the modern digital eco-systems is about Falling in love with the problem, not the solution! Then you can solve one piece of the puzzle at a time – and set deadlines. This is easier with small nimble solutions. Our customers who do this well, all start by locating the apparent problem, matching it up with the human element they want to solve, and then setting a specific timeframe.

04 May

Posted at 15:39h in Digitalization

“The future of finance will be data-driven.” Deloitte is talking about it; EY is talking about it; basically, most thought leaders and market leaders are talking about it. But are you talking about it, and what does it mean to you? 

Moving from the traditional finance function to a successful data-driven one is not a simple process. You have to go through all existing processes and create new workflows. But if you arm yourself with the right tools, you can create a more robust finance department than before. It all depends on your team’s willingness to embrace change, as well as an investment in training, data, tools, and mindset. 

However, the end goal that should keep you motivated is to: Eliminate guesswork in your and your management’s decision-making.

WHAT DOES IT TAKE TO BECOME A DATA-DRIVEN FINANCE FUNCTION?

Deloitte defines a data-driven finance function as one that: “… recognizes the full potential of granular data, managing data as a strategic asset.” To state it frankly, it means:

You need to move away from the traditional finance function and change how you work. 

It is this answer that results in too many post-pone the change. On top of that, some companies argue that the finance function always has been data-driven. Of course, data is what drives the finance function in the company. However, there is a difference between using data and being data-driven. And this is where we need to leave the traditional finance function behind and build a new foundation. At this foundation, we can combine data from all departments and make informed decision-making on all strategic decisions.

In a digital world, we cannot become truly data-driven without digital tools and processes. 

WHERE DO YOU START?

Some companies create a dedicated data team of analysts, others invest in the right tech and consultants, and others combine it into a digital strategy. It would always be to prefer building your company upon a framework of digital processes, but this is rarely the case the bigger your company is. Because of the simple reason, the more complex your processes are, the less initiative to start becoming a data-driven finance function. So instead of waiting for everyone to fall in line, start by looking at your team’s need to deliver results. The most basic start is to jut down your current data processes, and you can quickly begin these three ways: 

          1. Look at the strategy KPIs. If you had to give insight into one of these – what information flow would you need from the organization all around? Is the data you have right now enough, or do you need more from different departments, areas, or angles? 
          2. Data processes and automation. Get an idea of areas you need to automate and systems you need to look at, like ERP, cloud applications, consolidation software, e.g., Konsolidator. How much of the data is flowing automatically? Where does the flow start, and where does it stop? Do your sources integrate well, which affects the time you use on sorting? Are there questions you can’t answer because you cannot get ahold of that data? 
          3. Digital culture. How many in your team understand the digital processes and have a common understanding of words like cloud, cloud security, integration, machine learning, robotics, etc.? If your team is stuck on manual processes, it isn’t easy to convince people to become more digital if they do not see the value.

 

Eliminate guesswork

Challenging the guesswork in the decision-making is a daring and ongoing task, which you tackle best with a transparent approach. If you still use guesswork, start to look at these three steps. Today, everything depends on how quickly organizations set up data management systems that ensure transparency, including organization structure and decision-making practices. More importantly, the infrastructure of this set-up. Do not become left behind by your competitors because you delay the digitalization of your finance function. 

Become a data-driven finance function today

At Konsolidator, we are experts in financial consolidation and reporting. Thus, we created consolidation software to solve finance professionals’ shared challenges. Our team consists of state-authorized accountants, auditors, and former CFOs, who have many years of experience in the finance landscape.

We have a strong passion for sharing our knowledge about the latest finance trends and, more importantly, how you can improve and optimize your finance department to live up to its full potential.

View our solution here.

02 May

Posted at 14:21h in Digitalization

Is it the auditors or finance departments? 

It is not a business insight or a closed secret; it is the current situation of most companies: We need to be better at implementing a digital framework and getting ahold of all our data. And this goes for both finance departments and auditing firms. To succeed, it demands that you understand and implement effective digital systems that can integrate well with each other. Furthermore, digitalization in finance creates an opportunity for auditing companies to become advisors and show how. Especially when discussing group accounting and multiple systems, like Sage, SAP, Silverfin, Business Central, etc. With many small companies building their business framework on a digital foundation, two things are, namely, happening:

      1. Big companies risk losing their market position because they can’t develop at the speed needed.
      2. Small companies need advisors who can help and understand their digital finance landscape.

With Gartner saying that 85% of all companies will go to the cloud by 2025, how can auditing firms not go the same way? Like Partner & COO from the Business Partnering Institute, Anders Liu-Lindberg wrote in a recent article – too many auditors are stuck on a paper-filled process, with clients surpassing them digitally.

In finance, our simple goal is to: increase income and cut expenses.

And the same goal is adaptable to the audit space internally and towards their clients. For example, we saw a significant lead on cloud software in a recent poll asking +500 finance professionals what type of technology should digitalize the auditing process. Today, cloud software, like Konsolidator Audit, can accelerate the speed of financial consolidation while complying with the necessary regulations. As a result your gain: a faster close, which equals more customers.

Today digital tools are cheaper and more efficient than software in maintaining manual processes. We are so far in the digitalization in finance that you are now losing money on keeping these work processes; Especially if these are out of habit and convenience. The question is, why are you not leading the change?

We have a shared responsibility.

Currently, the seasons influence the audit business, which doesn’t have to be the case. Certainly, the digitalization in finance can be a shared responsibility. It is time for auditors to create an opportunity to go beyond the financial statement and into the relevance of the organizational development for their clients. There is a big gap for organizations that need insight into their economies – an opportunity to increase the customer base for every auditing firm and not just the big four. Bottom line: Become better advisers, and prepare to answer your clients’ questions, like:

        1. How do I get a better and ongoing insight into my Group’s economy?
        2. Which digital solutions are relevant for my company?
        3. How does our company’s performance reflect the industry?
        4. How can I best collect all my data from multiple ERPs in our subsidiaries?

Why KONSOLIDATOR AUDIT is the right solution for you

It is not just the customers who can benefit from optimizing and automating time-consuming manual processes. Find ways for your team to work smarter by minimizing your time spent chasing errors so you can increase your firm’s profitability. With more time available, Auditors can make room for more relatable advising and more clients.

Start with the consolidation – one of the most time-consuming and error-filled processes.

04 Apr

Posted at 15:08h in Digitalization

Step into 2022 with an accelerated and easy consolidation process and, thereby, progress towards a fast close for your clients. Evidently, that should be the goal, along with minimizing your time spent chasing errors and increasing your company’s profitability. If you then could add: simple process, easy customer management, and recognizable methodology, which the entire audit team can use. So, why haven’t you then adopted cloud software for your audit team?

Auditor save time now!

Auditors across the world experience challenges regarding the consolidation process. The complex process, prone to constant error-checking and insecurities about number validations across the group and its subsidiaries, is often demanding and time-consuming. Moreover, it only escalates the complexity, as the auditor separates financial statements from subsidiaries, mergers and acquisitions, foreign currency translations, and intercompany transactions. Of course, there is the element of strict compliance and governing regulations to think of too.

The increased pressure to identify risks in the consolidation process as early as possible is a constant in the audit. The reality is that outdated methods such as Excel and manual reporting are taking unnecessary time out of the auditor’s calendar. And time is money.

STEP INTO 2022 WITH A FAST CLOSE AND INCREASED PROFITABILITY

There is a better use of an auditor’s expertise, project management skills, and agile mindset elsewhere. For example, use these competencies to offer strategic advice to your current clients or pursue new clients for your practice. When you prepare clients’ financial consolidation in a digital and streamlined format, you can decrease the time spent on the financial consolidation and increase profitability while avoiding the risk of common spreadsheet errors.

By future-proofing your auditing through automated consolidation, you can strive toward continuous improvement in accountancy. Additionally, it is a good idea to become digital before your clients. We need more front runners in this landscape to take the lead on simplifying processes and minimizing errors in consolidation.

New Technology helps you as an auditor save time

New digital technology allows you to automate group consolidation – eliminating manual processes in Excel and building more costs in the audit team. Using one software to standardize and automate ensures everyone in your team uses the same methodology (well-prepared audit value) in the review or preparation of group consolidation. Simply it is a key to lower costs and greater accuracy in auditing.

Besides the abovementioned benefits, a valuable system can you as an auditor save time by:

  • Manage all your clients’ accounts in one place. And provide Immediate access.
  • Manage multiple exchange rates.
  • Ensure correct elimination of investments in subsidiaries and subgroups.
  • Create a transparent audit trail.

Automate the consolidation process in three simple steps with easy-to-use consolidation software.

Step into 2022 with an accelerated and easy consolidation process for auditors, and thereby come closer to a fast close.

Become a data-driven finance function today

At Konsolidator, we are experts in financial consolidation and reporting. Thus, we created consolidation software to solve finance professionals’ shared challenges. Our team consists of state-authorized accountants, auditors, and former CFOs, who have many years of experience in the finance landscape.

We have a strong passion for sharing our knowledge about the latest finance trends and, more importantly, how you can improve and optimize your finance department to live up to its full potential.

View our solution here.

25 Mar

Posted at 15:34h in Digitalization

For a long time, finance departments have been lagging behind areas like marketing and sales; Areas that seem more data-efficient due to their digital processes, analytics, and insights sharing. Now, it is finally finance’s turn to seize the benefits of technology. And we mean finally. Too many companies are maintaining a process that is long and inconsistent.

Why?

Finance has prioritized investment in digital processes in all other areas but themselves. As a result, many finance professionals are:

  • Left guessing on details
  • Creating inefficiencies and additional risks in the process
  • Not implementing complete transparency into tasks and data

AN OPPORTUNITY FOR finance and its IMPROVEMENT OF DATA QUALITY

The last two years have shown that digital solutions are essential for maintaining productivity in a company and answering to higher and more complex demands. And this is why we in finance and auditing can use Making Tax Digital (MTD) as an excellent reason and driver to start the digital journey now.

But whether you as a finance leader are embracing the change or not, the point is that digitalization is here to stay. The current development is evolutionary rather than disruptive. And most of us understand this and supports digitalization projects across the business; however, somehow, the finance function overlooks itself in this process.

Maybe instead of looking at external factors as a challenge, we should look at them as an opportunity for the finance function to be prioritized

It is especially in uncertain and changing times we experience an increasing need for the data insight of finance leaders. We have seen it with MTD, Covid, and increasing consumer demands – all external factors and drivers pushing us towards digitalization. The effect these unforeseen challenges had had on business processes and the data journey in finance is significant. It is more important than ever to present forecasts and recommendations that solve current and future problems to develop your business. And this demands close attention to data quality.

Data is one of the most crucial components in the industry thriving today, especially finance. It is a well-known fact that businesses generate significant amounts of data in their daily operations. Running a business without data and analytics is like walking in the dark with no light. 

IT IS TIME TO PRIORITIZE THE DIGITALIZATION OF FINANCE

When operating with an increasing amount of data, the need for several different software and systems increases, as does the demand for faster financial insights based on high-quality data. The massive amount of data we need to analyze and integrate quickly turns into too much. The amount we produce pile up and become unmanageable. That is unless we change our manual processes. How do we do this? The key is simple tools and an eye for data integration. If you go through your data flow process now, the question is, how much of it is automated and integrated?

Today, it is not only compliance driving the digitalization process. Across sectors, there is a common understanding that the finance department holds vital information for business success. Right now, we see the most significant gain for the finance function, with clear benefits, like: 

  • Innovative ways to manage cash flow
  • Ensure the financial stability
  • Monitor payment authorizations in a cost-effective way
  • Translate raw data into valuable insights
  • Gain real-life data to eliminate risks right away

 

Technology is your opportunity for finance

New digital technology allows you to automate manual work and data flows, but more importantly, it ensures standardized processes and has predefined control points, so errors are discovered early on. A strength of especially cloud-based software is that it enables you to integrate your systems quickly. In groups with subsidiaries in several countries and various ERP systems, using one software to standardize and automate the consolidation ensures everyone in your team, across borders, uses the same methodology in the review or preparation. 

The reality is that Excel and manual reporting are outdated methods taking unnecessary time out of the finance team’s calendar. 

AND TIME IS MONEY!

Many CFOs and finance professionals admit to accepting errors in their VAT reporting. And even more, find errors every time finance has to translate the data for the record to report. This can be why automation is (and should be) a crucial driver for many organizations in the reporting process, including consolidation, visualization, and repetitive tasks. It all comes down to the possibility of saving time and gaining insight to reveal strategic information instead of error-checking. Furthermore, we need to look at it as an opportunity for finance.

Choose tools and systems that integrate well

With an endless sea of software and systems to manage the entire workflow, it’s key to keep in mind your actual needs and current pain points when selecting software for your finance ecosystem. Consider:

  • Does it integrate well with other systems?
  • Is it simple to use?
  • Will it remove manual processes?

The consolidation process is one of the processes in finance that is most challenging for finance professionals, no matter region or country, because of inconsistent data integration issues. The complex process, prone to constant error-checking, is often demanding and time-consuming. Furthermore, it involves insecurities about the number of validations across the group and its subsidiaries. Of course, there is the element of strict compliance and governing regulations to think of too. It only escalates the complexity, as the auditor separates financial statements from subsidiaries, mergers and acquisitions, foreign currency translations, and intercompany transactions. This is one process that you should digitalize. There is a better use of the finance team’s expertise, project management skills, and agile mindset elsewhere.

Data integration and choice of digital ecosystems are not straightforward approaches. It is a long-term investment, which demands structural changes. But the reality is that there is no way around digitalization and data integration if you want to stay relevant as a finance professional. 

And instead, look at Making Tax Digital as just an opportunity to digitalize other parts of the reporting process, eradicate errors, and use the data for insights instead of ‘just’ reporting. The real focus of digitalization should be around the choice of software and its integration possibilities. Our job is to demand a digital ecosystem that integrates easily between software, systems, and processes without developing unnecessarily duplicated data.

16 Mar

Posted at 08:55h in Digitalization

Data is the new customer

We are now in 2022; everyone is aware of technology’s impact on businesses today. Without it, you are simply losing your competitive edge as data volumes increase significantly and manual processing becomes too heavy and time-consuming. So, the question is not if you should digitalize, but rather how, when, and what software to choose. This piece will look into one emerging trend that can help your finance team – the Business technologists.

Bring IT into your team:

The purpose of the Business technologist is to fast-track the massive digitalization potential for finance departments, who do not have the time or digital knowledge to look into tech solutions themselves. A Business Technologist can be defined as; A person from IT located in your department who focuses on digitalizing your department. 

Most people in Finance can recognize this scenario. You see an ad, or someone recommends a new software solution to you. It is without a doubt relevant for your department and can solve all your problems, but then the headache starts. A headache because suddenly, you need to take more time out of your calendar. Time to research and make an informed decision. Now it isn’t just information about this specific software you need, but also its competitors, integration opportunities, and the actual ROI. You know some of it, but you need to investigate some technological pieces and learn the difference.

An example is the difference between cloud, hybrid, and on-premise, which seem intangible. Add this to the stories you hear about the implementation process of new systems. Many finance professionals dread making the wrong choice and waiting months, maybe, years for the system to be up and running. So as a result, they let it be up to their IT department, as every other department in the organization. And then a queue starts at IT. 

If you have the resources, moving IT into your department in the form of a business technologist can maybe be the cure to your headache. This way, you have an employee in your team who is well-versed in all digital – and can help bring order to your digital finance ecosystem.

Sign up for our webinar on how to organize your digital finance ecosystem, here

The urgency for Finance is in the demand for accuracy in numbers

If you want to be a leading organization, delaying your digital development in 2022 shouldn’t happen. We are in a digital revolution. Businesses must keep pace to survive, meaning the demands on accuracy in numbers and digital efficiency have increased exponentially. To top it off, the last years of lockdowns, remote working, and living have accelerated the need to embrace digital.

This development in Finance is even more crucial; we depend on error-free reporting. Data is the new customer – but without tools to sort and interpret this data, we land in a minefield of manual errors and reactive behavior. At the same time, we see our competition move forward at the speed of light. All because we do not have the time and resources to look into the digital opportunities. Organizations cannot rely on IT alone; why embracing a Business Technologist can drive the needed change.

Digitalization doesn’t wait on your IT department

Newer research shows that IT spends almost 90% of its time maintaining and updating existing software. Subsequently, this leaves only 10 percent of their time to innovate and investigate new, improved software solutions. So if other departments are also looking for new systems, you might have to wait a long time for a response.

What is a Business Technologist?

To phrase it simply, it is a decentralized IT employee who builds technology capabilities for internal teams only. The person supports business units to embrace technology and strive towards a digital transformation. Their skillset varies from data scientists to developers. But a common factor is that they have their finger on the pulse and understand digital trends that create efficiency in your team’s work. Furthermore, they must know how to solve strategic and operational problems interchangeably.

THE MOST IMPORTANT PART: Because they work in your department, they understand the Finance function, your digital ecosystem, and your operations. Their primary focus will be to optimize your team and their work tasks – not the entire business. 

It’s a strategic role that equips and empowers non-IT resources to build digital capabilities.

Giving insight is a vital part of the business technologist role – how do we become more efficient with technology? A good business technologist works in harmony with IT departments regarding security and innovation. It means putting the responsibility, tools, and accountability for building digital capabilities in the hands of business units and not just IT. The Business Technologist can often conclude digital initiatives faster, release value quickly and mitigate competitor threats. 

Four value-adding areas of the business technologist:  

#1: Insight – The use of analytics, AI, and Tools

How you in the finance department can best embrace technology to transform your data into knowledge

#2: Optimization

How can finance’s critical processes be optimized to reduce error and increase reporting?

#3: Robotic Process Automation (RPA)

How can ‘bots’ be used to increase productivity? Of relevance to finance teams where there are high volumes of repetitive tasks.

#4: Integration of data journey

How do the data story and operational journey look? Where is the ‘friction’ to be removed?

Note: Hiring an IT person outside the IT departments will put new pressure on CTOs and CIOs to protect security and data for the business. So if the business technologist is an idea for you, you need to prepare and plan for how to empower them within a secure framework.

Good technology shouldn’t necessarily be complicated to implement

Even though we understand the value of insight a business technologist gives (if you have the resources), one thing we often forget is that good technology shouldn’t necessarily be complicated to implement. 

So the question arises if our mindset needs to change instead. There are many possibilities to create a digital ecosystem that focuses on integrations, not on how much ONE system can bring with digital development today. Say you need an ERP system, a consolidation system, and a reporting system – the more you try to incorporate everything, the larger the system gets and the more difficult it is to implement, learn, and maintain. With cloud, the supplier looks after the software, making it simple to use, and it can integrate with everything you have. This way, you avoid the queue at your IT department, complicated implementations – and even the business technologist. Instead, you can choose systems based on your exact need. No more, no less.

Why is there a greater focus on Business Technologists in 2022?

However, even though the right technology shouldn’t be too complicated to implement or demand too much time out of the IT department’s time. There is still the fact that the CFOs do not always have time to look into software or the proper knowledge to choose without corresponding with IT. Consequently, we see why Business Technologists can be an essential resource, for larger organizations, in 2022 and beyond.

You need an evangelist for change at the top to equip the business units for digital transformation. Organizations that get this right embrace and walk digital in everything they do. It is good to plan how they fit into your team if you have the resources. Essentially, you want to empower the people closest to the business process to drive excellent digital transformation

Are you still in doubt if it is a business technologist you need? One thing is for sure, do not delay your digitalization strategy due to a lack of resources. So whether it is a business technologist, citizen technologist (a colleague in Finance tasked with a digital mindset), or a run-through of less heavy systems – do not wait on the IT department. Instead, ensure that the digital financial ecosystem will not be left behind.

On April 19, we will host a webinar focusing on how you can organize your digital ecosystem in Finance.

Sign up for the webinar