Processes for financial and controlling accounting are becoming more complex and complex each year. The days of paper filing and paperwork, mainframe computing, and early ERP systems have been lost. Even fully cloud-based ERP systems are almost enough to handle the needs of emerging business skills, competitive global markets, and new AI and blockchain technologies. That's why SAP Fico's architects have experienced
The challenge of integration
Incorporating the SAP Finance Module is certainly not as simple as flipping a switch. With more than twenty years of experience in SAP FICO, Parveen Singh found that most of the major bottlenecks occur in the general reconciliation of the Ledger and data return, a topic he wrote about the broad, including in the
For two decades of helping companies automatically their financial accounting and control processes, Singh found that companies often see a high rate of financial reconciliation errors before transferring their data to an integrated SAP FICO system. Especially this is the case for businesses that still rely on a functional but poor hodgepodge of obsolete -manu -manu -manu -used systems and various software applications that do not talk to each other.
In one case, Singh found that before the data transfer, 15% of the company's total financial transactions contained harmony errors. Surprisingly, various balances appear in three places in the company's records: the general ledger, accounts to be paid, and the accounts receive.
“Most of these errors require great time to see and corrected,” Singh notes, “as they prevented the credentials of financial reports made by the Heritage system.”
How are fico bottlenecks cost companies
These futilities mean financial reports are not always delivered on time, and staff times areted the numbers for the end of the month. In addition to the cost of staff times and the delays in reporting, high error rates mean executives are not always confident in the accuracy of their financial data. This led to senior management if they could make knowledgeable decisions. With a competitive and rapid market change, this lack of confidence can be a critical weakness.
An additional hidden cost of an unacceptable system is the expenditure of the IT required to maintain running the legacy systems running. A company cannot afford a system that puts important financial crashing, but every year, the cost of maintaining the system grows. In one case, Singh found that an entire IT quarter of the IT budget was allocated to maintain legacy systems. In situations like these, the cost of obsolete systems reduces the company's ability to invest in technology infrastructure and future growth.
How Sap Fico makes a difference
Moving to an automatic FICO solution solves bottlenecks in many ways. First, it contures financial operations -especially payable accounts, accounts, payroll, and financial reporting -so that a business can automatically repay, pay, and reconciliation. It reduces the cost of both time and human mistakes. Second, the business realizes cost savings by reducing the number of tasks required and the amount of separate papers and approved required.
Third, the preparation of real-time more accurate reports provides the executive team with business intelligence needed to act. It allows the company to manage cash flows, evaluate profitability, and optimize how it provides its resources. It also allows for more strategic planning and forecasting.
Fourth, sharing data seamlessly throughout the departments makes significant cooperation both possible and more likely. Fifth, an automatic FICO solution improves compliance. Sixteen, it supports seamless global operations, automation of money exchanges, tax reporting on various jurisdictions, and integration -included financial statements from geographical scattered subsidiary firms.
The need for expertise
Such situations leave companies in a catch-22. They are increasing Need to upgrade their systems and switch to an automatic FICO solution, but they do not know How To manage the integration and transfer of data effectively.
Choosing the right architect can be important. Ideally, a company requires a SAP FICO or similar professional with extensive experience with ledger's general harmony and solving data conversion bottlenecks. Parveen Singh Hoshiar Singh, with financial experiences, Treasury, and FP&A experiences, has managed many of such partnerships in recent years and has established himself as leader in SAP Finance Automation.
