Financial reporting automation involves using specific software to curate and generate comprehensive financial reports. It allows the financial team to streamline the process by sifting through multiple systems to find the data needed to update the financial statements. With the software, you can retrieve data from different sources and generate comprehensive reports promptly. Here are the tasks to automate in financial reporting;
Data Consolidation
Data consolidation involves several complex processes, such as collecting data according to specific guidelines and rules and reporting the results to both internal and external stakeholders. While manual data consolidation is a time-consuming process that requires considerable resources, automated reconciliation is an accurate process that consolidates data in real-time.
Preparation of Financial Statements
As one of the most time-consuming processes, preparing financial statements involves collecting financial data from different sources and preparing statements. This process requires the financial team to collect all the important information and categorise it in an organised way. Once the data is collected, it is reviewed, analysed and used to prepare a financial report.
Management Reporting
Management reporting is also another task that can be automated during financial reporting. According to financial reporting software reviews, management reporting involves gathering and communicating information about the company’s performance to relevant stakeholders. The management report allows them to make informed decisions on the financial health of the organisation. Automating management reporting not only saves money but also a lot of time for the accounts and finance team.
Forecasting and Budgeting
Forecasting is an undertaking that helps organisations assess the current performance and predict the future potential of the company. Budgeting, on the other hand, is a comprehensive report that outlines the financial plan of the company, including what needs to be done and the total amount of resources to be used. By automating these processes, organisations can improve the accuracy and consistency of reporting and also save a lot of time in the long run.
Regulatory Reporting
Regulatory reporting involves the analysis and management of the regulatory data involves analysis and management in such a way that it demonstrates compliance with regulatory rules. With efficient regulation, financial companies can identify and manage the risks more efficiently.
Reconciliation
The process of reconciliation involves comparing transactions to support documentation to resolve any discrepancies that are discovered. Through reconciliation, organisations can compare two sets of records to confirm if all the figures are in agreement. While this can be labor-intensive when done manually, automation helps accelerate the process, thereby boosting the accuracy of the reported figures.
Key Aspects to Look for When Searching for the Right Automation Tool
Here are the key features to look out for when searching for the right tool;
- Actionable insights: Pick the best financial reporting software that can perform advanced analytics and come up with actionable insights.
- Interactive interface: Choose solutions that provide an interactive interface with drag-and-drop options to help you understand the datasets and outcomes with ease
- Reliable support: Your tool should have a reliable support team you can reach out to for assistance in case of any issue.
- Understandable structure: The solution you choose should feature customizable dashboards and reports that let you access the necessary information at a glance.
Conclusion
Automating financial reporting may vary from one company to another, but overall, you should choose a solution that is easy to use and deploy.
