Consolidation tool evaluation

Are you considering the implementation of a (new) consolidation tool?

The consolidation process is a central aspect of financial closing.

While the integration of different elements of reporting becomes increasingly important, factors like lack of uniformity in the data structure, complex consolidation structures and reliance on manual consolidation solutions such as Excel often lead to difficulties and increased susceptibility to errors. Integrated reporting processing is vital for a successful financial close.

For this approach, technology as an enabler is crucial. A consolidation tool can help you optimize and simplify the reporting process by standardizing the group consolidation, ultimately leading to a more efficient and transparent consolidation process.

Martin Stevka

Partner, Head Accounting Advisory Services Corporates

KPMG Switzerland

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Daniel Haas

Partner, Co-Head Accounting Advisory Services Corporates

KPMG Switzerland

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What does technology as an enabler mean?

Using technology as an enabler can be the key to moving an organization from basic control to IT-driven leadership in the areas of reporting, planning, information management, and, in particular, consolidation.

For the consolidation process, this eventually means transitioning from a manual, Excel-based consolidation process to an integrated planning and consolidation solution.

Consolidation tool evaluation maturity stages financial organisation

What needs to be considered prior to a consolidation tool implementation?

The selection of a reporting solution is driven by various internal and external factors, including group structure, the number and configuration of source systems, and the workflow consolidation process – shortlisting the right tools is thus of utmost importance.

In this regard, functionality and results are key.

For instance, can the system give a detailed overview of the recent changes, or does it solely present information relevant for further processing? Furthermore, what does the report output look like? Do reports provide vital information or simply contain a collection of raw data that requires further manual processing?

With the quality of a report indirectly proportional to the effort put into preparing it, a well-designed application with built-in automated functionality is what really matters.

Consolidation tool evaluation critical success factors

Considerations when implementing a reporting / consolidation system

Do's
- Close stakeholder management and clearly defined milestone plan to support change processes
- Adopt lessons learned from pilot approach
- Setup of training / change process to support understanding and acceptance of new functions and job profiles
- Manage interfaces to parallel projects to align the consolidation with reporting, planning, and accounting
- Early identification and communication of key staff for the newly formed processes
- Determine mitigation measures for Q1 reporting risks and beyond

Don'ts
- Vaguely defined activity split and responsabilities between the organizational units involved
- Lack of open communication to decentral decision makers and team members
- Simultaneous changes to the organizational structure and the overall consolidation process
- Clash of transition activities with quarter and year end closing
- Over-standardization that leads to ignored business specific needs

Our contribution to your consolidation tool evaluation

The software itself is crucial but having the right sparring partner supporting you throughout the process is just as valuable.

Many reporting applications are available in the market, but you do not have to know them all. KPMG Accounting Advisory Services can support you all the way, from evaluating a suitable consolidation tool for your group to helping you with administrative or technical problems once the consolidation tool has been implemented.

With our expertise, we make the difference in your project

IT and process know-how: Our experts have extensive experience regarding implementing of consolidation and reporting processes and IT applications.
Finance knowledge: Collaboration with KPMG ensures that compliance with regulatory requirements will be achieved.
We know your company: Understanding your business enables us to adapt your requirements in a fast and effective manner.
Expert network: Specialist network to system and industry solution providers available.
Fast start: KPMG can draw on a large pool of resources and thus support an optimal project approach and serve the project precisely, even in the case of very tight time constraints.
Credentials for comparable projects: Project expertise through various consolidation and reporting system projects.

Your benefits

Benefit from the extensive experience of our experts in the implementation of consolidation and reporting processes and IT applications.
Receive comprehensive advice independent from software provider regarding the best suitable consolidation/reporting tool.
Support in achieving compliance with the applicable regulatory requirements.
Quick and easy access to a wide range of expert knowledge within KPMG globally across all disciplines and services.