Financial management is expected to deliver accurate information at the right time. The reporting of an international group is laden with challenges when trying to acquire figures from several subsidiaries across the world. Slow and varying reporting is, in fact, a nightmare for most growth companies. Some CFOs would like to see timely comparable data, but how to turn these dreams into a reality? In this blog, we consider the changing requirements in reporting and offer an efficient solution for international financial management and group reporting.
Changing winds in reporting
Financial management reporting and its requirements have undergone changes. Traditional reporting focuses on past figures, such as those of the previous period, whereas modern reporting is more focused on timely information and predictability. Predicting the future is a priority in modern financial management work.
A modern financial manager is faced with challenges, such as the replacement of excel sheets with a tool that allows for the constant distribution of timely information within the organisation. Supporting a company’s strategic decision-making by providing relevant and timely information is often seen as the central role of financial management. Fully integrated financial management systems support dynamic data storages, which provide access to information anywhere and at any time.
Challenges in reporting
In financial reporting, different calculation rules, such as accounting and tax legislations and IFRS, must be accounted for. Financial management must provide the group with different reports for various purposes. The lack of common reporting procedures and principles is a common issue. If each subsidiary provides separate reports with varying timetables, it is impossible to make comparisons. In addition, combining information from various different systems and excel files takes time and requires manual work.
For international groups, finding a reliable local partner is also a challenge. Achieving a consistent reporting timetable may seem an impossible challenge when operating in several different countries.
Making dreams come true
Financial management can be conducted internally within a company or it can be outsourced to a company that provides financial management services. Staria’s international accounting services have been designed for internationally operating growth companies and the service is already available in over 35 countries. International accounting has been made easy. Manage subsidiaries across the world with the help of a single service partner. We search for reliable local partners and expand operations to new countries according to our customers’ needs. The benefits of the service are listed below:
- A real-time overview of the entire group’s financial situation
- Information is accessible anywhere and at any time (NetSuite functions as a cloud service)
- Consistent and comparable reports
- All data in one place
- A source for analytics and management reporting that works as a foundation for BI solutions, for example.
- Group reporting and combination tasks directly from NetSuite
- Regulatory reporting compliance ensured
Does your company face challenges with international financial management? View our webinar recording on how to resolve these challenges.
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We have prepared a guide covering various scenarios describing how companies generally avoid problems with international financial administration, as well as the pros and cons of the various solutions. Read more.