Financial consolidation solutions are tools that help businesses combine data from their subsidiaries or other entities for group reporting. This can reduce the amount of time and effort it takes to do these reports while ensuring compliance with regulations and improving accuracy.
These types of systems can be connected to different kinds of software, such as planning or budgeting systems like Anaplan or Adaptive Insights or corporate performance management platforms like Board. They can also be used to streamline the collection of multi-entity financial records into a central database that can then be consolidated into unified, real-time data sets for reporting, planning and decision-making purposes.
Using these solutions can improve the overall quality of a company’s financial reports, and they can often come with built-in reporting tools that make it easier to create consolidated balance sheets, income statements and cash flow statements. In addition, these types of software can automate much of the consolidation process, which can reduce human error and shorten overall consolidation close times.
Depending on the type of financial consolidation solution, some may be cloud-native and operate on a software as a service (SaaS) model, while others are installed locally or on-premises. Some are designed to be used with a particular accounting system, such as QuickBooks or Oracle, while others can be integrated with various other platforms that companies use for financial reporting, planning and budgeting, such as Adaptive Insights or Anaplan. For instance, Rephop is a specialized financial consolidation software that automates the process and helps to simplify the financial close, providing a faster and more accurate way to consolidate data.