Skip to main content

Fall Financial Reporting: 3 Essentials for Better Books

Fall financial cleaning for ERP software

For your industrial business financial reporting, the end of the year means one thing: closing out your finances.

As you tally up 2017 and budget for 2018, here are the three critical tasks one of our senior financial consultants, Stevency Telfort, suggests every business tackle this fall:

1. Tweak financial reporting for clarity

Financial reports hold a lot of power come the end of the year. Key performance indicators (KPIs) should clearly and accurately describe to stakeholders what they need to know about the year's successes and failures in order to make sound decisions for the future.

Take year end as an opportunity to improve your financial reporting both in terms of which KPIs you’re tracking as well as the level of detail you’re providing for various readers. “Cater to your audience, presenting detailed or abbreviated editions of your financial statements where appropriate,” says Stevency. “For example, if your profits and losses document is three pages long, it makes it difficult for those who aren't financially savvy to understand what you've prepared."

Financial reporting in ERP systems

2. Rake away dead accounts

What happens once your bonds mature or your loans are settled? Well, if you manage your accounting on an opaque, outdated computer system, they could sit in files for months or years. When it comes time to validate accounts, businesses can waste a lot of time and energy validating the abandoned accounts of one-time customers that haven't bought anything recently and probably won't ever again.

everyone's roles should be defined so when you generate your numbers, they're accurate

Unfortunately, dead accounts are not only clutter. “Having dead or ambiguously labeled accounts increased the risk for account errors or potential fraud,” says Stevency.

As you validate accounts this fall, take note of dead accounts and clear them out as you go. You'll thank yourself this time next year (and every year after that).

3. Improve closing scripts

A script is a roadmap and your close date is the destination. How you get from Point A to Point B depends on how well you stay the course. Did you firm up an exact date - say, 10 days after the end of the period? Did you communicate cut-off dates to all departments so they can complete activities relevant to the closing period in time for finance to close?

"It's a collaborative effort," Stevency said, "everyone's roles should be defined so when you generate your numbers, they're accurate."
 
Any after-the-fact changes, however slight, require accountants to wait for the data, recalculate everything and possibly reallocate costs, which will not only delay the close for days on end but also potentially skew profit margins. That's why you should take time this fall and review how you close. Be sure to note where you struggle and how best to restructure if you want to navigate around these issues next time.

Close out the financial season with abas ERP

Are you managing your financial reporting through abas ERP? If so, you already know how easy it is to check these fall financial chores off your year-end to-do list:

Integrated communication

abas ERP notifies departments of an impending close and guides them through the final stages.

Automatic accruals for Inventory Receipts

Having an integrated inventory management system that impacts finance eliminates the need for manual accruals and backdating late inventory invoices from vendors. abas ERP automatically places accruals into accounts payable or shipped not invoiced accordingly.

Lockdown capabilities

Administrators can freeze departments as they close individually to prevent late entries and errors from complicating closes.

Instant updates

Any inventory, shipment, expenses or payments that occur during your close will automatically trigger an update of the entire master accounting information, meaning that last-minute receipts or issues will be accounted for as long as inventory management postings have not been closed for the period. Accountants won't have to break out their adding machines and do it all themselves because someone forgot to post recount values in time.

Risk management

Implement internal control processes using abas to mitigate error and fraud exposure. You can also restrict writing access by user and remove dead accounts with a single click. With abas, you can be sure your finances are as safe as they are accurate.

Your accounting team should not spend its month-end or year-end closes reconciling major discrepancies or performing rote data entry and manually verifying accounts. Give your number crunchers the respect they deserve with abas ERP.

What KPIs should the accounting team at your manufacturing facility track? Download our free e-book to find out.

703-444-2500
+43 1 319 15 19
+49 721 96 72 30
703-444-2500
+38 061 21 37 855
+420 241 931 544
+31 (0)85 3033 555
+421 903 717 980
+55 - 11 5054 - 5500
+852-2793-3317
+91 77559 04373
+62 (21) 293 19 366
+603-56124999
++94 76 666 9070
+66 81 6297375
+359 2 423 61 56

Contact

Your consent can be withdrawn at any time by sending an email to [email protected] . We assure you that we will treat this information as strictly confidential and that it will be used by abas Software AG and abas partners only (privacy policy).

North American Headquarters

703-444-2500
abas USA
45999 Center Oak Plaza
Suite 150
Sterling, VA20166

North American Headquarters

703-444-2500
abas USA
45999 Center Oak Plaza
Suite 150
Sterling, VA20166

Infocom Ltd.

+38 061 21 37 855
bul. t. Shevchenko, 56
Zaporozheye
69001

amotIQ sro

+420 241 931 544
Belnická 603
252 42 Jesenice u Prahy

ABAS Business Solutions Nederland BV

+31 (0)85 3033 555
abas Netherlands
Beilerstraat 24
9401 PL Assen

amotIQ sro

+421 903 717 980
amotIQ sro
Palarikova 36
900 28 Ivanka pri Dunaji

SHP Informática Ltda

+55 - 11 5054 - 5500
SHP Informática Ltda
Alameda dos Jurupis, 452, 7°andar - Conjunto 73/74
Sao Paulo - SP 04088-001

abas Business Solutions Limited

+852- 2793-3317
abas Hong Kong
1621, New Tech Plaza
34 Tai Yau Street
Hong Kong

abas Force India Pvt. Ltd.

+91-77559-04373
abas India
303, Aspiro Complex, Opp. Thyssenkrupp,
Pimpri Stn. Road, Pimpri,
Pune 411018

PT. abas Information Systems

+62 (21) 293 19 366
abas Indonesia
11620 Taman Aries, Jakarta barat Jakarta
Grand Aries Niaga G1-2H

Synchro RKK Sdn Bhd

+603-56124999
abas Malaysia
Sunway Geo Avenue,
Jalan Lagoon Selatan
Sunway South Quay,
Bandar Sunway
Subang Jaya Selangor 47500

Providence Global Pvt Limited

+94 770415387
Providence Global Pvt Limited
752/1
Dr De Silva Mawatha
Colombo 09

Wisdom Information Systems

+66-29340451/52/53
Wisdom Information Systems
208/5 Ladprao Soi 126
Bangkok 10310

abas Бизнес Сълюшънс България ООД

+359 2 423 61 56
abas Бизнес Сълюшънс България ООД
жк. Младост 1А, бл.553А, офис 1
1729 София