5 Ways CPM Can Enhance Your Accounting Process
5 Ways CPM Can Enhance Your Accounting ProcessBy Sam Cheo, Managing Director, Sigma Conso Asia
Still thinking whether an investment in CPM software is the right one?
Here are five compelling reasons why you should get a CPM application for your conglomerate (or group).
1. Provide Flexibility To Align With The Company’s Strategic Vision
In today’s fast changing business environment, anything can happen. No one knows what kind of strategic move the company will make tomorrow, be it acquiring a new company into the wings of the group or an initial public offering of a subsidiary company. These strategic business moves can be unexpected and demanding at times. Hence, a company needs to be strategically prepared for any shift in its strategic vision with suitable management tools (i.e. CPM software) to handle the consolidation of numerous entities under the company.
2. Advanced Validation To Improve Accounting Workflow
Data error identification and data validation has often been identified by accountants as a stumbling block in the accounting workflow. Accountants often lament that time has been “wasted” on checking and validating data accuracy, rather than progressing forward. Unlike Excel sheets, a CPM software can limit and standardize the type of data that is entered into the system. It also runs advanced validations at each step of the work process to ensure that data do not conflict each other. This saves both time and effort for accountants and free their time to engage in other business activities. Moreover, accountants do not have to maintain the spreadsheets to ensure their ‘longevity’.
3. Real Time Collaboration
CPM software provides a collaborative platform for different users to work with each other simultaneously. With a CPM application, users do not have to wait for each other nor do they have to grapple with the pain of updating new versions of spreadsheets.
More importantly, the collaborative platform facilitates internal communication and extensive traceability. The CPM software also enables the consolidation team to visualize the reconciliation progress at a glance, entity by entity. In situations where actions may be required, it can be highlighted (in real time) while the user is making changes to the data.
4. Finding The Relevant Data Quickly And Without Hassle
Financial data is processed to allow the management to analyse and make timely business decisions. During the analysis process, it is important for the data to be accurate and easily traceable to aid users in making meaningful analysis. The ability of CPM software to serve as a data hub augments the analysis process, making it simpler for users to find the relevant data for their analysis. This strengthens the company’s productivity as more value adding activities such as analysis can be completed, rather than spending time searching for the right data.
5. Automate Report Generation
Business reports are common among companies as it gives the users a sense of where the company is at and highlight the areas that need to be improved. While business reports are useful tools, it takes both time and effort to generate them, especially if they are for different groups of users. With CPM software, users can create reports and allow them to be automatically generated. These reports include standard reports like balance sheet, income statement, cashflow statement, audit reports to more complex and dynamic reports, based on the needs of the users. This reduces the lead time for business reports to be produced and allow timely business decisions to be made.