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We're all familiar with hearing about how companies struggle to maximize the use of their financial information using Excel or similar spreadsheet-based tools. Excel is a great tool to store and share the most important financial information. But when it comes to obtaining crucial details and carrying out important tasks such as creating accounts, financial reports fail to meet the standards that is required by any business looking to use their data to aid in business expansion. Modernization is required to implement an overhaul of the financial consolidation process and to provide valuable information to finance teams as well as the larger business.
Closing and consolidation of finances is an essential task for finance teams. However, it is an arduous and tedious task if it is not supported by the appropriate platform. The latest financial consolidation software like Board Financial Consolidation (Board FC) can replace the tedious manual tasks that are traditionally associated with the process of financial consolidation in a single, extremely adaptable solution.
In the case of Altium Packaging, this was an important issue that the team had to work through. In the end, Altium packaging solutions began an initiative for digital transformation and chose Board FC as the right platform to guide this process. Hong Dinh, VP Controller, VP Altium Packaging - notes, "We were looking for a solution that could allow us to be able to use plenty of flexibility... Board is the perfect solution for the thing for." With integrated capabilities for BI, as well as CPM capacities, Board FC delivers deep analysis of operational and financial results that greatly improve the efficiency of financial consolidation.
Altium is a solutions for packaging manufacturer with manufacturing facilities located within both the United States and Canada, manufacturing rigid plastic packaging for various market requirements, such as industrial oil containers for consumers labeling for food and nutrition for items such as orange juice and yogurt, as well as healthcare packaging and the labeling of prescription bottles. Altium also has an concern for recycling and sustainability field, facilitating recycling of containers made from plastic in order to create new bottles made of rigid material.
The company has experienced a substantial phase of organic expansion mostly due to multiple large-scale acquisitions (sometimes as high as three or four per year) The need was to find an accounting system that could remain flexible to be able to adapt to these major shifts at the organizational level. Hong Dinh recalls, prior to Board FC, that "...a large portion of our processes weren't updated, and the way we created accounts for the company's GAAP and also for our internal management was done using Excel."
It was essential, then to find a solution that could handle the production of financial statements, and provide the flexibility to affect other business functions. As a result Altium Altium team collaborated together with Board Professional Services to set up the full year of historical data - offering a complete GAAP account of balance, revenue statement and cash flow report for their planned go-live date within Board FC.
In the initial month implementing the system Altium's team Altium could have an integrated platform that could handle all their financial statements that are external to them. This means that Altium has now improved and revised process for making decisions. More time and authority are now available to the finance team, allowing them new avenues to examine and analyse their data and the conclusions they can discover.
For the Altium team Altium it's just the beginning of a journey. Hong Dinh explains, "Board isn't just for the purpose of consolidation or planning. There are other areas can be developed upon." In the process of planning for the future the team is planning to implement an advanced top-down forecasting system based on Board that will replace the manual Excel-based procedures. When they move their annual financial plan to a rolling-predictive method, which will provide flexibility to the financial plan for the coming five years. the solution will consist of:
cashflow calculation as well as planning and actual data comparability cashflow calculation, planning, and actual data comparison
cashflow management by month (for the year that is planned and the following year for 24 months) as well as by calendar year (for the three years following the year of planning)
calculation of specific lines of an income statement based on the driver (such as the volume per day multiplied by the number of days in the month)
planning at the cost center month or general ledger (GL) at the account level (these groups are based upon data hierarchies and mappings of Business Units like food and beverages and consumer industrial groups, healthcare, employee resource groups (ERG) and corporate headquarters, and activities in SG&A)
whole calendar (budget) planning in addition to forecasting planning (while certain plans will be filled with actuals, which means they will be not accessible for entry, some will be available for planning , allowing to save multiple forecasts accessible)
In addition to forecasts that roll out the finance department at Altium is also looking to create a cost center hierarchy that is time-efficient as well as additional and enhanced internal reports, as well as incorporating scenarios in the overall financial plan method.
By implementing Board FC, organizations can reduce the complexity - which could otherwise require many hours and effort - associated by multi-level consolidation across the entire business. Board FC is the Board platform offers the one financial consolidation tool available that blends powerful, built-in consolidating capabilities with the flexibility of a drag-and drop Business Intelligence (BI) and Corporate Performance Management (CPM) environment.
This unique feature of Board FC Board FC delivers accurate group reports, quick closing and total financial control over the company's operational and financial areas in a single and integrated environment.
What is the significance of this?
Finance teams cut down on the cost of time and hassle in completing financial consolidations and make sound decisions across operations and finance. As mentioned above Finance departments typically utilize spreadsheets for their financial consolidation process. This means:
the amount of mistakes (typically human errors like an incorrect input of a number or spreadsheets that are not linked correctly that result in errors) dramatically increases the number of errors dramatically.
the possibility of duplicate work is also increased, as several finance professionals may be working on the same project simultaneously and not be able see in real-time what they are doing
companies are subject to stricter regulations in terms of deadlines as well as disclosures, which adds further pressure on finance teams to provide information quickly accurate, transparent, and accurately and in a transparent manner.
the procedure itself is much more dragged out than it should be and takes longer to complete and becoming costly at the final step.
These elements overcome a significant hurdle for businesses that have to consolidate and shut down their financial records. In addition, consider the other issues that come with the consolidation process, like removals or foreign current conversions as well as the challenges of making use of Excel spreadsheets (and ERP solutions) are made more apparent.
Adopting Board FC is the initial step in transform the process of financial consolidation and closing within your business by automating long-running procedures, eliminating the multitude of complications involved in the process, and making the correct financial decisions from the finance department and even beyond.
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