Does the thought of manual calculations, data entry errors and version control nightmares send shivers down your spine? Finance teams worldwide can relate to that tiresome feeling of spending hours consolidating data in spreadsheets.
In this article, we'll explain why we've seen many accountants move from spreadsheets to Fathom for their monthly consolidated reporting.
Why consolidated monthly reporting in spreadsheets can be problematic
While spreadsheets offer flexibility and accessibility, they can present significant challenges when used for consolidated monthly reporting.
Here are five reasons why:
1. They’re error prone
- Human error is inevitable when manually transferring data from various sources into a spreadsheet.
- Complex calculations and formulas can lead to mistakes that are difficult to detect.
- Discrepancies between data sources can result in inaccurate reporting.
2. They can be time-consuming
- Collecting data from different departments or systems can be time-consuming.
- Combining data from multiple sources into a spreadsheet is a labour-intensive exercise.
- Creating and formatting the report requires significant time and effort.
3. Hard to audit
- It's challenging to track changes and maintain different versions of the spreadsheet.
- Determining the origin of data can be difficult.
- Without proper controls, spreadsheets can increase the risk of non-compliance.
4. Difficult to scale
- As data volume grows, spreadsheet performance can deteriorate.
- Managing complex calculations and formulas can be a difficult process.
As the number of entities or data points increases, Excel can become cumbersome to manage and hard to collaborate with colleagues.
5. They offer limited functionality
- Spreadsheets offer basic charting capabilities, but they are often insufficient for complex analysis.
- Advanced analytical tools and functions are limited in spreadsheets.
- Spreadsheets may not have adequate security measures to protect sensitive financial data.
Why finance leaders are choosing Fathom for consolidated reporting
Fathom’s financial consolidation software is designed to help businesses eliminate time-consuming manual financial processes; removing the reliance on Excel spreadsheets.
When it comes to consolidated financial reporting, Fathom shines by offering:
- Automation: Fathom automatically pulls data from your accounting software, giving you accuracy and efficiency in place of manual data entry.
- Always up to date: Fathom’s financial consolidation software stays connected with your source accounting systems, so you have up-to-date financial information whenever you need it. Functionality: Easily consolidate up to 300 entities, across 97 currencies. Fathom easily handles complex consolidated reporting.
- Data visualisations: Your data is transformed into actionable insights with charts and graphs that help your audience understand the numbers.
- Collaboration: Schedule and share reports and insights with stakeholders. This helps improve communication and decision-making.
“Operating things in spreadsheets can be quite prone to error. You miss a formula, you accidentally delete something, move things around the wrong way. That can be hard to find. So, to put it simply, consolidations were a total pain.” David Maher, Right Brain Insights
Learn more about financial consolidation software in our webinar: Save time and add value with consolidations.
How to Get Started with Fathom in 5 easy steps
Transitioning from Excel to Fathom might seem daunting, but it's worth it, with customers saving 14 hours each reporting cycle on average.
What you can expect when setting up a financial consolidation in Fathom:
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Integrate your accounting software: Connect Fathom to your cloud accounting platform. See all our integrations.
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Define your entities: Import the entities you want to consolidate in Fathom. You can take advantage of the direct integration with Xero, Quickbooks, MYOB, and Sage. And if you’re not using any of these systems, you can import the company data using Excel. Fathom can consolidate up to 300 entities in a single currency consolidation. If you are looking to consolidate more than this, get in touch with our team to talk about the next steps.
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Set up consolidations in the following steps:
- Set the consolidated group's fiscal year
- Choose the presentation currency (if it is a multi-currency)
- Customise the FX rates
- Restructure the Chart of Accounts by creating headings
- Set KPI targets within the consolidated group
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Create reports: Bring together results into management reports, and get insights into the performance of your consolidated group.
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Collaborate and share: Share reports with your stakeholders.
The benefits of using Fathom
By switching from spreadsheets to Fathom for your monthly consolidated reporting, you'll enjoy countless benefits, including:
- Increased efficiency: Create accurate consolidations in minutes not days and reduce the risk of manual errors.
- Improved accuracy: Rely on up-to-date data and eliminate the need for manual calculations.
- Faster decision making: Access timely financial information that helps you to make informed decisions about your business.
- Better collaboration: Share insights and collaborate effectively with your team.
“Before using Fathom, consolidations or consolidating any client data across entities or even different time periods was extremely manual. It would be a matter of downloading certain reports from different accounting software, having to chop and change spreadsheets, you would spend more time just filtering and fixing and cleaning the data than you would in actually analysing and creating something of real value to a client.”David Maher, Right Brain Insights
Conclusion
Upgrade your monthly consolidated financial reporting processes with Fathom.
By embracing the accuracy, speed and flexibility that Fathom offers, you’ll be able to gain valuable insights with ease, improve efficiencies, and make better-informed business decisions.
View this consolidated financial report example today for a better understanding of what Fathom may be able to produce on a regular basis for your business.
Learn more about our consolidations feature here.
