Do you know what financial consolidation is? It’s like solving a puzzle. Imagine a company with different parts, each handling its finances. Consolidation involves bringing all these parts together and presenting them so the leading company gets a complete picture.
It may seem simple, but it’s not. Each part may have rules and regulations, like different languages, currencies, or tax laws. Putting all these mismatched pieces together can be a headache, especially if you’re using traditional tools like spreadsheets.
However, managing financial consolidation has become easy with the latest ERPs like NetSuite ERP. Thanks to technological advancements and cloud-based ERPs, consolidating finances has become a breeze.
Let’s dive into how NetSuite makes financial consolidations much easier with its excellent features.
What is NetSuite Financial Consolidation?
NetSuite Financial Consolidation is a tool for keeping track of all your financial information in one place. It’s like having a special window that shows you everything happening with your money in real-time, making managing your finances much more accessible.
You can also automate some tasks to speed up the closing of your books. NetSuite ensures that you follow accounting standards, tax laws, and regulations no matter where you operate.
Using NetSuite, you can create efficient rules and approval processes that save you money and give you better control over your finances while reducing the risk of financial problems.
Three Strategies to Enhance Your Financial Consolidation with NetSuite Solutions
1. Automation reduces error and manual effort
NetSuite makes life easier by automating many data entry and reporting tasks. This means there is less chance of human slip-ups and delays. It even takes care of financial reports for you, either partly or wholly, on autopilot, which cuts down on costs and boosts efficiency big time.
But it doesn’t stop there; this automation is a game-changer for making all kinds of business processes run smoother daily.
By eliminating manual work, companies can focus on the big picture, make intelligent decisions, and grow. NetSuite’s approach to automation doesn’t just make businesses run smoother and more agile; it also allows them to quickly adapt to whatever the market throws their way.
2. Meet local and global requirements
NetSuite makes handling taxes a breeze, no matter where you are. It’s got this fantastic integrated tax engine that helps you deal with all sorts of taxes, like GST, VAT, consumption taxes, and even the regular sales tax, across your subsidiaries. It’s designed to keep you in line with all the local and global tax rules without making your head spin.
NetSuite can handle over 190 currencies, a game-changer for keeping your currency conversions up to date as exchange rates increase. This is super important for businesses that operate internationally since it ensures your financial reports show the real deal regarding currency values.
NetSuite also keeps track of every currency conversion, noting the exchange rates used during each transaction. This is great for keeping a historical record and helps with financial analysis and reporting, letting you see how numbers were crunched based on currency values at different times.
3. Visibility across the entire organization
Visibility is critical in financial consolidation. If you can’t get a clear picture of how each division or subsidiary performs, it can drag the whole organization down. It makes pulling everything together way harder.
Without that transparent view, you’re more likely to make mistakes, run into inefficiencies, and take longer to wrap up consolidation. And that? That throws a wrench in making decisions and planning.
NetSuite tackles financial management like a pro with its cloud-based tools. It offers real-time, crystal-clear views of your finances, complete with detailed reports and key performance indicators (KPIs) you can check out anytime, anywhere.
This means you can continuously monitor your business’s financial health, making quick and intelligent decisions.
NetSuite’s SuiteFinancial Consolidation feature is a game-changer, simplifying the whole financial consolidation process. It saves you effort and time by doing the heavy lifting, making your financial reports more accurate. This gives your team more time to focus on the big-picture stuff and boost your organization’s performance.
NetSuite Financial Consolidation Features
Consolidation
NetSuite’s innovative multi-entity and multi-book accounting features, along with its real-time data access, significantly simplify the consolidation and reporting of financial information.
By integrating a unified dataset, NetSuite enhances financial management efficiency, allowing for the creation of customized accounts charts at the subsidiary level. This unique functionality ensures that transactions recorded at the local level are simultaneously accurately reflected in the corresponding parent account.
As a result, this seamless integration eliminates the cumbersome data normalization and matching process, paving the way for more precise and timely consolidated financial reporting. This approach streamlines financial operations and gives organizations a more transparent, comprehensive view of their economic standing across all entities and subsidiaries.
Multiple Tax and Accounting Standards
Supporting both U.S. and international accounting standards is a significant advantage for companies. It allows them to create multiple sets of financial records to comply with various accounting rules, tax codes, or other specific requirements that may vary between the parent company and its subsidiaries.
This flexibility ensures that companies can manage their financial reporting to meet different regulatory environments and business needs.
Furthermore, the provision to apply multiple accounting treatments to a single transaction for reporting purposes enhances the accuracy and relevance of financial statements, making it easier for stakeholders to understand the company’s economic health and performance across different jurisdictions.
Intercompany Accounting
Automated intercompany accounting is a game-changer! It simplifies the reconciliation and elimination process for intercompany transactions, saving time and reducing the risk of mistakes.
Here’s how it works: when you tag purchase orders and sales as intercompany transactions, the system links them up. This means the accounting system can automatically spot these transactions and handle the elimination entries when the orders get invoiced.
NetSuite has this cool advanced intercompany netting feature that lets accounting managers consolidate balances between subsidiaries super smoothly. It even automates settlements for certain transactions, making the settlement process easier and keeping financial statements accurate.
So, this automation makes things more efficient and streamlines the financial close process in a big way.
Final Words
So, NetSuite Financial Consolidation is a game-changer in managing finances. It combines all your financial data, cuts down on manual work by automating stuff, and ensures you’re playing by the global rulebook.
Plus, with everything visible in real-time, making intelligent decisions and boosting performance is easier than ever. NetSuite has you covered with consolidation, support for various tax and accounting standards, and handling those tricky intercompany transactions.
It’s like having a financial wizard in your toolbox, saving you time and giving you a clear picture of your business’s financial standing. For any modern business, NetSuite is the way to go.
