It’s no secret that maintaining an accurate general ledger requires unremitting effort from accounting professionals and other C-level executives. On top of that, comes the responsibility of accurately reporting financial data. Without proper financial reporting processes, it is markedly difficult to track, analyze and report business income. There are many reasons why creating manual reports and maintaining your records without a comprehensive 3PL solution can prove to be problematic for your organization. At the end of the day, too many businesses make poor decisions because the data they base their decisions upon is inaccurately reported. Some such inaccuracies stem from the following:
Absence of Comparative Data
Single-column reports are simply not as informative as multi-column reports. The inclusion of past data including prior-year amounts allows for the proper evaluation of goals and trends.
Though all comparative figures do not necessarily need to be included in the final report, in most cases, it is beneficial to track them. Month over month amounts and budgeted amounts from every year of operation can be valuable to have on hand.
Moreover, calculated percentage differences can be a significant on-hand metric.
Let’s say in the month of February and March, the total utility expenditures were $3000 and $4600 dollars respectively while budgeted amounts were $65000 and $85000 respectively. While budged amounts saw a significant increase, its percentage increase only totaled 31% while the percentage increase of utilities was much greater; a whopping 53%. These simple figures can have a significant bearing on financial decisions.
Make sure your reports include such data. For managers to have these numbers on hand with an ability to recalculate and individualize reports without reliance on the finance team can be invaluable. This is exactly the functionality that a specialized 3PL solution can provide.
Reports Are Not Accurate
When it comes to financial reporting, the words ‘those figures may be off just a bit’ are probably spoken quite often even though, to everyone’s knowledge, they are supposed to be 100% accurate.
Needless to say, inaccurate reporting is dangerous and can lead to large issues. Though this is true, it is still remarkably common. A 3PL solution that dynamically links your GL data to Excell and presents a real-time view of business figures can greatly benefit the process.
Reporting Is Not Properly Scheduled
In addition to tracking financial data month over month and year over year, an organized report system is a game-changer, though many organizations don’t use one. Manually scheduling and managing hundreds of reports at a time can be a logistics nightmare. With such a process, reports can slip through the cracks and inconsistencies can abound. To combat this, a logistics solution is necessary. An ability to schedule, organize and view all reports in a single location can prevent confusion and headache.
Financial PowerPack: A 3PL Financial Reporting Solution
It’s no question that a 3PL software solution can introduce a necessary system of checks and balances into the financial reporting process. In addition, such a solution can provide key automation that streamlines otherwise demanding tasks. Sequoia Group’s Financial PowerPack solution is dynamic and intuitive, touting some of the following core functions:
- Microsoft Excel Reporting
- Codeless Access and Consolidation of Data
- Viewing and Drilldown
- User Account Security
- Batch Report Generation
- Web Reporting
- Report Analysis
As is true with all Sequoia Group solutions, each is specifically engineered for both flexibility and ease of use. Financial reporting doesn’t need to be difficult and accuracy does not have to be any less than 100%. At Sequoia Group, we want to put the proper tools in your hands for maximum success. For more information about our financial reporting software or other dynamic 3PL solutions, contact us at 801.571.2300 today.