Business case Domo Investment Group
Domo Investment Group: key information
- Investment company
- Active in three sectors: Domo Chemicals (chemical industry), Alinso (real estate) and Dovesco (private equity)
- Headquarters established in Belgium (Zwijnaarde)
- More than 50 entities included in the consolidation
- 6 different currencies
- Replacement of Excel
- More information: domoinvestmentgroup.com
The return on investment – in brief
- Less manual input
- Strongly reduced risk of errors thanks to a strong automation of the consolidation process
- Decentralized responsibility: the local controllers have access to the software for the data-entry
- Logical checks and validations with a reliable data flow as result
- Optimum traceability thanks to the transparent history of the consolidation entries
Domo Investment Group has grown strongly and conducts 2 consolidations a year. The group is represented worldwide and is active in three sectors. This makes for a complex structure relating to the consolidation:
- Different countries where the group is active
- Problem of different exchange rates
- Sub-consolidations (currently two, but in the future possibly a third sub-consolidation for Dovesco)
Due to an explosion in the number of companies following acquisitions and due to the fact that it was becoming increasingly difficult to keep the history of the entries, the group’s Financial Direction was looking for a reliable software to replace the use of Excel and to launch a powerful process to solve the group’s problems. Generating reliable data and a strong audit trail were therefore crucial for the group.
The group chose Consolidation & Reporting in 2011 for its consolidation:
- The implementation was problem-free
- Trainings were given for the users of the local entities, to make sure they too would be able to use the tool fully independently
- The group is able to use the standard functionalities available in Consolidation & Reporting
Following the excellent experience with Consolidation & Reporting as a consolidation tool, the Alinso group decided to use the tool in a second phase for their management reporting. A separate environment was created in which the Alinso group was able to manage its own specific configuration (other chart of accounts, dimensions, etc.) which they needed for their management reporting.
The implementation of Consolidation & Reporting allows Domo Investment Group to produce reliable consolidated annual accounts completely independently. About 15 controllers of the local entities have direct access to the system for the data entry, as a result of which the consolidation of 58 entities can be carried out by a small team at headquarters.
Decentralized responsibility for the data-entry
After closing the local accounts, the users are able to load their data in the software. The data of the local systems is automatically uploaded in the system with the Mona bundle, which is standard available in the tool. This is all within a specific deadline and means the consolidation can be finalized on time.
Less manual input and a strongly reduced risk of errors
The software implementation means less manual copying. Existing entries are automatically copied in the new period, resulting in a considerable reduction of the error risks. After the audit phase of the local entities, local entries can be entered to ensure everything is perfectly traceable.
A reliable information flow
The group also experiences the advantages of the logical checks and validations which are standard available in Consolidation & Reporting. The history of the consolidation entries can always be requested, resulting in a better traceability of the data. Another big advantage for the group is in terms of the processing and monitoring of intercompanies: thanks to the specific intercompany validation reports available on the level of the local users considerably less time is lost on the collection and exchange of information, and the group is able to focus on the detected differences.
Kevin Vanooteghem, Consolidator at Domo Investment Group explains:
“The implementation of Consolidation & Reporting has resulted in considerable advantages in terms of the quality of data and time savings. We always received rapid support of the professional Sigma Conso team: the result was a short implementation period and a correct follow-up. The automation of the tool made a number of aspects considerably more efficient, such as the follow-up of the CTAs. In the future we are considering using the HUB of the tool to create a direct link with the accounting systems.”