By Stefan Farrugia on 2018-09-18
Harmonisation of Management Accounting is a daily challenge being faced by international company groups’ accountants. There are numerouspitfalls that can affect the outcome of your international accounting consolidation, therefore companies need to make a conscious, consolidated effort to moveforward.
Besides branch or subsidiary level initiatives as set by headquarters, educating management accountants, consultancy, and the use of Financial Statement Consolidation Software, contribute strongly to successful accounting consolidation.
Here are some pitfalls to avoid in Management Accounting when aiming to improve your international intercompany consolidation:
All problems and solutions begin at subsidiary level. Therefore, in an international group, the key priority is to avoid employing an underqualified finance team. Even at subsidiary level, accountants need to be aware of the way their reports and entries will be included and imported into the main accounting consolidation software. Recruiting the right personnel at subsidiary level plays a critical part in achieving successful consolidation.
Buying in consultancy can also help. By ensuring that data is accurate, and processes are set-up and reviewed for optimum performance, fewer problems will be encountered further down the line during accounting consolidation. If you lack in-house skill, buying in expertise to review processes and reports can save you time and money at a later stage.
Investing in the wrong accounting consolidation software can cost you time, training and money. It’s important to opt for the right consolidation solution that caters to your company needs.
Choosing a software package that does not require a complete revamp of your accounting software and systems at subsidiary level, is key for immediate progress. Disrupting systems and introducing new software at this level could cause more setbacks than actual long-term benefits. This is why the decision to adopt new accounting software should not be taken lightly. Fortunately, there are solutions out there like CFOUR that allow you to integrate all data seamlessly, even if this data is exported from multiple software solution!
To learn more about how CFOUR integrates data for intercompany consolidation from various sources, call us today on +356 2144 5566 or email your query to firstname.lastname@example.org.