Cloud-Based Financial Consolidation: Flexible Scalability, Boosting Growth!

Almost all businesses are committed to growth, which is the essence of business development. However, growth is often accompanied by increasingly severe financial integration issues involving multiple departments, subsidiaries, and different regions worldwide.

In the process of rapid development, companies often find themselves facing a variety of currencies, languages, accounting standards, tax structures, and reporting and compliance issues, the complexity of which far exceeds the processing capabilities of common spreadsheets and standalone accounting applications used for financial integration.

 

Leading Cloud Financial Integration Solutions

How can enterprise systems and software be expanded to meet the challenges of financial integration for multiple companies, countries, or regions? Some companies still use traditional methods, believing in "one force subdues ten meetings." They install new servers, ERP software, and backup systems in new global offices, and set up IT teams to configure, implement, and maintain these systems; or they "muddle along" with QuickBooks and spreadsheets, demanding that analysts manually but at the same time timely and accurately summarize data from multiple departments, manually handle currency conversion, and regional tax work. Cloud computing provides a scalable model for complex financial integration, which not only greatly improves speed compared to typical on-premise ERP systems but also significantly reduces capital expenditure. In addition, with the automation of key accounting processes, cloud ERP solutions can also greatly reduce the risk of errors and delays when manually handling multiple accounting statements.

 

Increase the speed of financial closing by 20% to 50%

In order to improve speed, more and more medium-sized enterprises are now turning to the cloud for financial integration and have achieved remarkable results. For example, a study by Nucleus Research on NetSuite OneWorld users found that the cloud has greatly improved the speed of closing. An important reason for this is that financial managers at the headquarters can quickly obtain data from subsidiaries without waiting for several weeks. "After migrating from the previous customized, non-integrated accounting system to NetSuite OneWorld, companies can expect to increase the speed of financial closing by 20%," Nucleus pointed out, "some companies have even increased by 50%. With cloud solutions, companies with multiple international subsidiaries or multiple legal entities can integrate financial and operational data more efficiently on a broader scale."

 

In the following areas, cloud-based financial integration solutions also help to improve business efficiency:

01

Meet local and global tax requirements 

The embedded tax engine can help companies easily control the tax returns of multiple subsidiaries - from Goods and Services Tax (GST) to Value Added Tax (VAT), from consumption tax to general sales tax.

 

02

Handle currency conversion

Cloud solutions can automatically update currency conversion functions with exchange rate fluctuations, while also supporting manual control. In addition, it can record the exchange rate when performing currency conversion, providing a historical record of the total amount.

 

03

Reduce errors and manual operations

Cloud solutions can promote the automation of key accounting processes, helping companies minimize errors (which are inevitable when manually handling multiple spreadsheets), thereby empowering employees to focus on analysis and create more value.

 

04

Improve financial operation visibility

If you cannot fully understand the performance of each department and subsidiary, the performance of the entire organization will inevitably be affected. Mature cloud solutions can provide multi-level consolidated reports and key performance indicators (KPIs) that can be measured at any time for all business entities.

 

Integrate finance and strengthen management

Financial integration is not isolated. Leading cloud financial integration solutions are also integrated with sales management and performance, e-commerce, inventory management, services, and support applications, helping multi-company or multinational companies eliminate capital expenditure and no longer need to continue maintenance. For example, CommVault, a leading provider of enterprise data management, protection, and availability software, replaced about 12 applications with NetSuite OneWorld to carry out global financial integration of 35 subsidiaries distributed in Europe, Asia, Australia, and South America. "Oracle NetSuite provides a unified platform integrated with other cloud applications, which helps us successfully reduce complexity," said Eric Luehmann, CommVault's financial systems manager. "With Oracle NetSuite, we have a platform that can continue to expand as the business grows." For companies with multiple independent business entities and global companies with businesses all over the world, efficient integration of accounting statements is related to the future development and competitive advantage of the organization. For this, please choose a cloud solution that can effectively improve organizational efficiency and visibility.