Is consolidating and reporting your financial results a challenge? Do you spend countless hours correcting your P&L, balance sheet, and cash flow statements?
Can you easily track and monitor currency translations, intercompany eliminations, and journal entries? Are you out of compliance with regulatory and audit requirements?
If you find yourself saying “yes” or “I’m unsure” to any of these questions, then it’s time to reevaluate your consolidation process—whether your company’s small, medium, large, public, or private. It's time to consider implementing the purpose-built financial consolidation system found in today’s enterprise performance management (EPM) suites.
In fact, many organizations are adopting cloud-based financial consolidation solutions. They’re seeing great advantages—eliminating the problems inherent in Excel, reducing costs, and enjoying easy upgrades. They’re saving time, money, and a whole lot of frustration.
The Problem with Spreadsheets
Smaller or privately held organizations often use a spreadsheet tool like Microsoft Excel for financial consolidations. That, though, only leads to challenging situations – not being able to easily report on the data due to the lack of OLAP capabilities, not being in compliance with GAAP or IFRS, or spending countless hours trying to figure out the breakage in the data linkages.
As organizations grow, financial consolidations become increasingly challenging. The bulk of the hours are solely spent on collecting data and closing the books. What if that organization is looking to go public, get acquired, or acquire another organization?
The bad news is that those countless hours spent on collecting data and closing the books will multiply significantly. You’ll have even less time for analysis.
Additionally, spreadsheets don’t have comprehensive controls like purpose-built financial consolidation systems. Translation: the auditing process will be a nightmare. It’s also costly – as one technology company experienced prior to implementing Host Analytics Consolidations. After the implementation of the technology, this company saved over $200K on its auditing costs alone!
On-Premises Solutions Are Costly, Get Outdated Quickly
Traditional on-premises EPM solutions aren’t a great option for the consolidation process, either. Many medium or larger organizations have benefited from EPM financial consolidation software, but now feel the pain of on-premises technology. The single biggest challenge they’re facing is implementation cost and time.
The initial implementation alone typically takes months or quarters, not weeks. When software patches are released later in the cycle, organizations need to test that patch in QA environments prior to placing into production. And upgrades? Well, most organizations typically defer upgrades. Then they find themselves using software that’s years old – all because the upgrade requires yet another significant investment of time, money, and resources.
The market is also becoming increasingly aware that on-premises software has many security challenges. In fact, choosing the right cloud solution may provide better data security than traditional on-premises solutions.
The Cloud Provides Speed and Cost Advantages
Another option is cloud-based EPM applications. At Host Analytics, our financial consolidation customers have experienced many benefits from our cloud-based consolidations – from fast implementation times to easy integration of newly acquired companies.
The Host Analytics Consolidation capabilities have allowed our customers to close the books faster and with confidence. Our cloud-based reporting tools also allow users to generate reports quickly and collaborate efficiently in the creation of regulatory filings, board books, and management presentations.
All of our customers realize benefits that make the cloud superior to on-premises solutions:
- No hardware or software installations.
- One version of the software with continuous upgrades.
- New innovations implement quickly.
- Much lower total cost of ownership (TCO).
One example is Jazz Pharmaceuticals, Fortune’s 2013 fastest growing company. Jazz Pharmaceuticals uses Host Analytics Consolidations to be more agile and drive growth. They were able to reduce the consolidation process time and easily integrate acquired organizations into the consolidation and financial reporting process. To learn more about Jazz Pharmaceuticals case study, view the on-demand webinar.
Thinking about moving to the cloud? Learn more about Host Analytics Cloud-Based Consolidation and Reporting solutions, and find out more about how our customers, such as Zep Inc., have facilitated growth and change with Host Analytics.