When it comes to financial reporting, one of the greatest frustrations for accountants is also one of the easiest to overcome.
Data inconsistencies result from numerous factors, from disconnected systems where data from various sources fails to align, to user errors that result from manual work. These inconsistencies not only waste valuable time but also lead to frustration and potential errors in financial reporting.
In a shocking report from EY referenced by Accounting Times, 96% of more than 2,000 finance leaders surveyed last year expressed concern about the integrity and reliability of corporate reporting data, citing data inconsistencies as a contributing factor.
These findings underscore the significant impact of data inconsistencies on the accounting profession, leading to increased manual workloads, higher error rates, and concerns about data reliability in financial reporting. This article explores the related pain points experienced by accounting teams, and how FYIsoft solves them all.
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Get a DemoPain Points Resulting from Data Inconsistencies in Financial Reporting
Manual Data Consolidation
Finance teams often spend countless hours manually consolidating data from various sources. This process is not only time-consuming but also prone to errors. Manual interventions and ineffective reporting software have limited financial reporting functions and processes for FP&A professionals.
Data Entry Errors
Relying on manual data entry introduces human error, especially when handling large volumes of transactions. Even a small data entry mistake—like misplacing a decimal point—can lead to significant inaccuracies in financial reports that lead to hours of wasted time spent reconciling numbers. Read how outdated financial reporting systems are draining the morale of accounting teams.
Lack of Real-Time Reporting
Traditional reporting methods and Excel-reliant financials often result in static reports that quickly become outdated. This lack of real-time data hampers timely decision making and can lead to missed opportunities.
Poor ERP Integration and Excel Dependence
When financial reporting tools don’t properly integrate with ERP systems, teams are forced to extract data manually—often into Excel. This “dump and manipulate” process introduces major risks: broken formulas, outdated numbers, and uncontrolled versions of reports being shared across departments. (Learn more about the importance of eliminating the “Excel dump” in financial reporting.)
The Solution: FYIsoft’s Integrated Financial Reporting Software
FYIsoft offers a sophisticated yet easy to use financial reporting software that easily integrates with many ERP systems. Designed to automate processes and accelerate the financial close process through easier reporting, FYIsoft’s platform is ideal for multi-entity or multi-GL environments.
Key Features:
- Automated Data Consolidation:
FYIsoft integrates with your ERP(s) and extracts financial data directly from the GL (or multiple GLs), eliminating the need for manual data dumps and risky Excel manipulation. - Real-Time Reporting:
After an integration with the ERP, the data sync to FYIsoft’s cloud reporting solution is just a click away, enabling finance to generate and distribute accurate, perfectly formatted financial statements, ensuring stakeholders have access to the most current data. - Error Reduction:
By automating data extraction and report generation, FYIsoft minimizes the risk of human error, enhancing the accuracy of financial reports. - Scalability:
Whether your organization is growing or already operates across multiple entities, FYIsoft’s solutions are scalable to meet your evolving needs.
Conclusion
Data inconsistencies across financial systems pose significant challenges for accounting teams, leading to inefficiencies and potential errors. FYIsoft’s integrated financial reporting software addresses these issues by automating data consolidation, improving ERP integration, reducing manual intervention, and providing real-time reporting capabilities. The result? Faster closes, fewer errors, and more confidence in your numbers.
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Summary of FYIsoft’s Superior Efficiency
Feature | Manual/Excel-Based Reporting | FYIsoft Financial Reporting |
|---|---|---|
ERP Integration | ❌ Limited or none | ✅ Seamless, direct from GL |
Data Consolidation | ❌ Manual, time-consuming | ✅ Automated, multi-entity capable |
Error Risk | ❌ High (copy/paste, formula errors) | ✅ Low (automated, controlled process) |
Real-Time Reporting | ❌ Delayed, static exports | ✅ Instantly updated with data sync |
Multi-Entity Support | ❌ Difficult to manage in Excel | ✅ Built-in multi-entity capabilities |
Report Distribution | ❌ Manual emails and report packages | ✅ One-click distribution |
Version Control | ❌ Prone to miscommunication | ✅ Centralized and controlled |
Scalability | ❌ Inefficient as business grows | ✅ Scales easily with growth |