Financial Statements are a crucial component that contains significant data about an organization’s economic well-being. Currently, everyone is working remotely, and it is difficult to gather all the information in one place, especially in mid-size or large organizations. That’s where one could use software to prepare and maintain consolidated financial statements.
Moreover, suppose there are several subsidiaries under a company name. In that case, it might be challenging and tedious to have consolidated financial statements that contain all the data of the parent company and its group of entities.
Also, preparing consolidated financial statements are time-consuming and require a substantial effort. In preparation for such statements, a huge bunch of information is required and stored for assorting data. Assets, liabilities, income, expenses, equity and cash flows form the contents of Consolidated Financial Statements.
Due to these reasons, many companies switch to a consolidated financial platform to store all data and deliver analytical reports. Let us look at some of the advantages such an interface could provide.
Benefits of Consolidated Financial Statements Using Software
There are several ways through which one can take advantage of such financial information. Also, good consolidation softwares like the Dun and Bradstreet (D&B) Direct for Finance can further simplify the procedure to prepare a consolidated financial statement.
1. Effortless Overview:
Such financial statements help investors, analysts, business owners and other company prospects to get an overall view of the organization. It allows them to judge the financial health of the whole company at one glance.
2. Systematic Data Storage:
Preparing consolidated financial statements aids in storing data in one place in a structured and organized manner. Furthermore, using consolidation softwares helps to reduce paperwork.
A consolidation software such as D&B Direct for Finance is an application programming interface (API) that will store and synchronize data flow, even from existing accounting softwares such as ERP/CRM.
3. Good Insights:
A consolidated financial statement can help study and gather information for making sound financial decisions. This process can be automated with the help of D&B’s interface. It uses its capabilities to provide actionable and analytical insights by directly integrating them into an organization’s work systems.
4. Saves Time:
Such automated softwares helps eliminate manual tasks, avoiding the risk of human errors, which saves a lot of time. Instead of looking for information in multiple areas, consolidated data can make your search hassle-free. Suppose you require specific information; you just need to search via D&B data cloud; the interface will browse through the entire work system and return the required details.
5. Reduces Complexities:
Consolidation softwares like D&B can help in identifying opportunities, reduces credit risks and improves cash flows. Further, it cuts through complexities to lessen friction from the quotation process till the time of payment. D&B offers analytical insights that help in taking the right business decisions.
As one can view, the creation of consolidated financial statements using the right software can help in giving your organization’s data a structured form. In addition, consolidation softwares is reliable as it fastens the complex process, provides accurate information in making sound business decisions, which in turn helps to increase the company’s ROI.