Unlocking the key to streamlined consolidation and reporting

Consolidation and reporting come with many benefits. But, before diving head first into your unification project, consider the following: what level of unification are you hoping to achieve?

Every entity needs to determine the level of unification that suits its needs. With that in mind, let’s start with the different types of projects:

• First, a harmonization project consists of reconciling the process and the frame of reference to facilitate the reconciliation tasks.
  
• Then, a convergence project consists of building the management reporting in a common tool and following a shared frame of reference, but keeping the different processes led by two different teams.
  
• Lastly, there’s a complete unification project, which has the goal of implementing a solution and one unique frame of reference with a unified team that will lead the processes of statutory consolidation and management reporting.

The first steps of the project determine the target group, keeping in mind that unified reporting offers clear advantages in terms of quality and data coherence, but also limits the flexibility and capacity to evolve with the needs. Moreover, in the case of complete unification, both the consolidation and management reporting teams need to make peace with the fact that they will have to make certain concessions.

Our top six tips to help you succeed in consolidation and reporting unification

1. Consider the needs and actual practices of reporting so you can build a blueprint based on the imbrication of models. For example, to review the forecasting reporting cycle to better align with the actual information.
2. Build a common frame of reference that responds to the needs of both consolidation and reporting. This could be a unique chart of accounts, common elimination rules, or coherent perimeter settings, to name a few.
3. The processes should be linked from collecting to producing the common reports.
4. Think about your organization, because it will no doubt be impacted. Until which point do you want to unify? What will be the impact for the entities?
5. Implement an IT architecture and evolving systems adjusted to your needs
   1. Think about the link between the consolidation solution and the decision-making solution.
   2. Pay attention to the choice of the consolidation and reporting tool, because not every software on the market was created to offer both functionalities. There are consolidation solutions that have been completed afterwards with reporting functionalities, and vice versa.
   3. Consider the volume and performance aspects.
6. Be sure to get the management team involved, so that they can make the necessary decisions. The aim to unify consolidation and reporting implies structural choices and the local management plays a crucial role in clarifying the responsibilities when presenting the unified information.

If anything, the above points indicate how this type of project is a strategic one. Making a smart choice with regards to your software provider is also a big advantage, and the criteria that should help you in making the right choice are experience in the domain, mixed experience in the team, proven methodology in the closing process, thorough knowledge of information systems. That’s where our Financial Performance Platform can help.