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Why shift from legacy to a modern financial close solution?

       
  • Financial Close
  • Thought Leadership

Why shift from legacy to a modern financial close solution?

Why shift from legacy to a modern financial close solution?

Are you tired of outdated and inefficient methods for consolidating your financial data? Do manual processes, disconnected software applications slow down your financial close process and hinder your team's productivity? It's time to say goodbye to these limitations and embrace the power of modern financial close solutions. 

Legacy financial consolidation solutions refer to traditional methods and systems used for consolidating financial data from various sources. While they may have served their purpose in the past, these solutions come with a host of challenges that can impede your organisation's growth and success.

With legacy solutions, you may find yourself grappling with manual processes that are prone to errors, leading to inefficiencies and delays in the financial close process. These systems often lack automation, requiring extensive manual intervention for tasks like intercompany eliminations, currency conversions, reconciliations and data transformations. This not only consumes valuable time but also increases the risk of error, leading to non-reliable data.

Furthermore, legacy solutions struggle to handle large volumes of data and complex consolidation requirements, making it difficult for your organisation to scale and adapt to changing business needs. Rigid reporting frameworks and limited customisation options can hinder your ability to meet evolving audit needs and comply with changing financial reporting standards.
 


Why are Modern Financial Close Solutions Needed?

If one maps how consolidation solutions have evolved, the below table would be very evident.
 

Consolidation Legacy 1.0Consolidation Solutions 2.0New Age Consolidation Solutions 3.0
On PremiseOffered both on-premise and cloudSolution offered according to Clients' need be it cloud, premise, etc
Totally maintained by technical teamsMaintained by technical teams and run by financeMaintained & run by the finance
Dependence on product expertsRequired mix of consultants  and internal teamFinance teams became independent 
Change requests were expensive and time-consumingChange requests were expensive but were done relatively fastRelatively cheaper and faster change requests

 

 

 

 

 

 

 

 

The landscape of financial consolidation is evolving, and modern solutions like JustPerform are leading the charge. These innovative platforms are designed with end users in mind, empowering finance teams to fully control the consolidation process and achieve unparalleled efficiency. They represent a fundamental shift from traditional methods, enabling organisations to maintain agility and efficiency in our fast-paced business world.

One of the key advantages of these modern solutions is their cloud-based deployment. This approach eliminates or minimizes the need for technical team involvement, providing real-time access to financial data from any location. The integration of immediate data access, automation, and cloud-based deployment empowers financial teams to manage intricate consolidation requirements with ease. This not only reduces the risk of errors but also enhances overall productivity.

Automation stands as a pivotal feature of these modern financial consolidation solutions. Tasks such as intercompany eliminations and currency conversions can be automated, minimizing human error and accelerating the entire financial close process.

Furthermore, these solutions are adaptable, seamlessly adjusting to the ever-changing needs of an organization. They offer robust customization options, allowing organizations to tailor their financial reports to meet specific audit requirements and adhere to the latest financial reporting standards.

This increased efficiency and flexibility do more than just expedite the financial close process. They equip organizations with the technology needed to make informed strategic decisions, propelling growth and success in a highly competitive market landscape.
 


Imperative Shift to Modern Consolidation Solutions

With the complexities of modern business operations, CFOs and financial leaders are increasingly realizing the need to invest in modern consolidation solutions. Here's why:
 

Dealing with diverse data sources

A study revealed that 37% of participants grappled with complex data from multiple sources. This becomes even more challenging during group consolidation where data comes from various subsidiaries in different formats.

Modern consolidation solutions, like JustPerform, offer unprecedented integration capabilities, from incorporating legacy data sources to pooling multiple data lakes. JustPerform can integrate with over 80 data sources, offering a comprehensive solution for standardising diverse data for consolidation.

Disparate data systems demand a single source of truth. JustPerform ensures this by providing a singular, reliable data so urce for all stakeholders. This enables finance teams to access real-time data and reduce manual errors leading to increased productivity and accuracy in the financial close process.
 

Automation of tasks

Despite technological advancements, a study found that 54% of teams still heavily rely on manual processes. Legacy systems often have limited functionality for consolidation, causing teams to lose substantial time in tasks like data collection, collation & standardisation.

Modern consolidation solutions like JustPerform turn this around by automating tasks, allowing teams to focus on decision-making and strategic activities. They assure higher quality due to reduced human interaction and possible errors. 

Adjustments such as intercompany eliminations, currency conversions and journal postings are automated with an extensive business rule library enabling finance teams to allocate more time for value-added activities like analysis and strategic planning.
 

Adherence to Compliance

In 2018, companies fell short of compliance regulations, paying a whopping $3.94 billion in non-compliance fees. The cost of non-compliance is on an upward trajectory, with recent studies indicating an alarming 45% increase. 

The root of the problem often lies in the inflexibility of legacy systems, which makes compliance challenging for many companies. Furthermore, the cost of disruption due to non-compliance is three times the cost of adhering to compliance regulations.

In 2018, companies fell short of compliance regulations, paying a whopping $3.94 billion in non-compliance fees.

Legacy systems present a host of issues, including non-compliance with statutory requirements. Users of these systems often find themselves struggling with frequent system downtimes, even when they are keen to comply.

This is where modern financial close solutions like JustPerform come into play. The new age platform is equipped with various functionalities and features that streamline the compliance process. 

For instance, JustPerform comes with inbuilt GAAP and IFRS-compliant apps consisting of comprehensive consolidation scenarios that organisations can adopt to adhere to regulatory compliance. This, coupled with its powerful financial intelligence capabilities, enables companies to adhere to statutory requirements swiftly and seamlessly.
 

Embrace Rapid Changes

Navigating the dynamic business landscape necessitates embracing change swiftly and effectively. This rings especially true for growing organisations, particularly those dealing with the intricate challenges of mergers and acquisitions. In such a changing environment, the capacity to adapt rapidly and comply with shifting regulations is not just beneficial, but vital. However, legacy systems often create substantial roadblocks to this adaptability.

Recognising the critical importance of effective change management, contemporary solutions have emerged with streamlined processes at their core. JustPerform is one such solution, placing a strong emphasis on establishing a robust consolidation process. It provides easy-to-follow workflows to eliminate potential bottlenecks and enhance the speed and efficiency of course corrections to financial close processes.

Furthermore, JustPerform's fine-grain authorisation feature is pivotal in managing changes. Rapidly implemented changes can significantly impact an organization, making control measures essential. JustPerform addresses this by assigning specific access rights to different users, ensuring that only authorised personnel can implement changes. This not only bolsters security but also facilitates rapid damage control when necessary.
 

Benefits received: consolidation, close and reporting solutions


According to a study by BPM Partners, modern close solutions offer far more than just improved reporting and analysis, and shorter, accurate close cycles. They have evolved to provide a single source of truth, ensuring all data originates from one unified source. This approach not only streamlines data management but also enhances the accuracy and consistency of information.

Another significant benefit highlighted by the study is the ease of access to information. In today's fast-paced business environment, having quick and easy access to critical data can make all the difference.

In fact, 64% of participants cited improved reports and analysis as a key benefit of adopting modern close solutions

Investing in a modern financial close solution like JustPerform is no longer just an option, it has become a necessity for organizations looking to stay competitive in today's constantly evolving business landscape. With its ability to handle diverse data sources, automate tasks, facilitate faster change management, JustPerform empowers organizations to simplify regulatory compliance and focus on business growth. So, if you're a CFO or finance leader looking to future-proof your organization, consider investing in a modern financial consolidation solution like JustPerform today!

Legacy financial consolidation solutions are outdated and inefficient, prone to errors and delays in the financial close process.

Modern financial close solutions like JustPerform bring increased efficiency, flexibility, and real-time access to accurate data, enabling organizations to make informed decisions and accelerate growth.

These modern solutions automate tasks such as intercompany eliminations & currency conversions to reduce risk of errors & enhance productivity.

It is time to embrace the change. From long hours to automated close, from spreadsheets to the cloud, from legacy methods to modern solutions.

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