4th June 2018
The global nature of our world and the increase in M&A activity across many industries has meant more opportunity for growth but also more headaches for financial teams. The need to consolidate multiple sets of GL balances and roll them up to a parent or corporate level is time consuming and error prone. When spreadsheets and legacy ERP systems become too difficult to accommodate, many organizations turn to the promise of a General Ledger upgrade, replacement or consolidation project thinking that the latest technology will solve all issues.
However, even at the conservative cost of $20M, a shift to the newest General Ledger technology cannot accommodate the level of detail required by today’s business users and regulatory bodies. In order to use an ERP system for financial consolidation, all subsidiaries (and future subsidiaries) must be on the same system, all charts of accounts must match and the product must include consolidation functionality such as inter-company eliminations, segregation of adjustments and audit trails.
Rather than overhaul your existing ERP system, consider leaving your infrastructure intact and implement an Accounting Hub with a detailed sub-ledger that will sit in between source systems, data warehouses and the General Ledger. You’ll achieve richer financial reporting, quicker monthly close, centralized accounting policies and audit security.
Here are some of the benefits of using this financial architecture:
General Ledgers were never built to manage the daily volume of data that is now present in all organizations. By implementing an Accounting Hub and sub-ledger, you can resume using the General Ledger as it was meant to be used – as a tool to capture aggregated credits and debits for high-level financial reporting capabilities.
Considering a General Ledger upgrade, replacement or consolidation project? Before you take the leap, think about implementing an Accounting Hub and sub-ledger to gain greater functionality and save time and millions.
The global nature of our world and the increase in M&A activity across many industries has meant more opportunity for growth but also more headaches for financial teams. The need to consolidate multiple sets of GL balances and roll them up to a parent or corporate level is time consuming and error prone. When spreadsheets and legacy ERP systems become too difficult to accommodate, many organizations turn to the promise of a General Ledger upgrade, replacement or consolidation project thinking that the latest technology will solve all issues.
However, even at the conservative cost of $20M, a shift to the newest General Ledger technology cannot accommodate the level of detail required by today’s business users and regulatory bodies. In order to use an ERP system for financial consolidation, all subsidiaries (and future subsidiaries) must be on the same system, all charts of accounts must match and the product must include consolidation functionality such as inter-company eliminations, segregation of adjustments and audit trails.
Rather than overhaul your existing ERP system, consider leaving your infrastructure intact and implement an Accounting Hub with a detailed sub-ledger that will sit in between source systems, data warehouses and the General Ledger. You’ll achieve richer financial reporting, quicker monthly close, centralized accounting policies and audit security.
Here are some of the benefits of using this financial architecture:
General Ledgers were never built to manage the daily volume of data that is now present in all organizations. By implementing an Accounting Hub and sub-ledger, you can resume using the General Ledger as it was meant to be used – as a tool to capture aggregated credits and debits for high-level financial reporting capabilities.