E-BOOK

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CONTENTS
Introduction 03

The challenges 04
• Time-consuming manual processes
• Bad data
• Media disruption due to a patchwork of systems
• Lack of an integrated reporting process

What is necessary for efficient financial statement preparation? 06

Checklist: The challenges that suggest you need a consolidation solution 08

The solution: Rapid preparation of consolidated

financial statements by using the right software 09

This simplicity makes LucaNet

the leader in consolidation solutions 11

Summary 12
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INTRODUCTION

How long do you need for the preparation is constantly on the increase for managers
of your quarterly, annual, and consolidated in accounting departments, with regulatory
financial statements? There is an acute need requirements also growing and external
to optimize procedures particularly for en- stakeholders having greater information
terprises that still use traditional systems, needs. But in practice, often too much time
such as Excel, for the compilation of their is spent on administration tasks such as the
financial statements. This is not just im- collection and validation of the financial data.
portant for classic annual and consolidated This means that important issues such as
financial statements, but also for intrayear analyzing the data and in turn determining
monthly and quarterly reports that need to appropriate strategies do not get the priority
be provided regularly to internal and exter- they deserve.
nal recipients.
But by using the right software, the effort
But enterprises that prepare their you currently spend on consolidation, plan-
statements on time and present ning, and reporting will reduce significantly.
their financial data in a transparent It means that the speed of financial state-
ment preparation can be improved by up
manner have a significant advan-
to 80%. CFOs will benefit from being able
tage over the competition. to access consistent and reliable numbers,
while also saving a significant amount of time.
Transparent financial data are the basis This means that you can focus on what really
for certainty in planning and optimal matters, such as analyzing the data and us-
controlling that are crucial for successfully ing this to determine appropriate strategies.
managing your enterprise. But time pressure

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THE CHALLENGES

TIME-CONSUMING
MANUAL PROCESSES

For many enterprises, the compilation of

consolidated financial statements is a
manual and often time-consuming process,
especially when traditional systems such as Bad data
Excel are part of the mix. These tools do not
help to automate the consolidation process.
You cannot simply initiate the entire consoli-
dation run across group structures of any
depth at the touch of a button.

BAD DATA Duplicate Missing Imprecise Inaccurate

data data data data

If you rely on Excel or other DIY solutions for

consolidated financial statements, errors in
the complex files are almost an inevitability.
The result? Multiple entries, unintended
deletions, outdated, and inexact data creep
into the process. If the Excel files are edited
by several people, it is not uncommon for Fig. 1: Poor data quality is a headache for many finance departments.
rows and cells to be deleted accidentally,
with links and formulas being lost.
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MEDIA DISRUPTION DUE TO A

PATCHWORK OF SYSTEMS

If too many standalone solutions are used MANUAL

in an enterprise, system breaks also oocur. PROCESSES
The differing systems harbor the risk of
discrepancies in the data that will in turn lead
to reconciliation problems, such as when
all number of file versions are maintained
manually. BAD MEDIA
DATA DISRUPTION
LACK OF AN INTEGRATED
REPORTING PROCESS

Without appropriate system support, there

is often a lack of discipline in keeping to LACK OF
INTEGRATION
deadlines amongst managers. Misunder-
standings arise in communication and
numerous rounds of clarification ensue.
The distribution of tasks relating to financial
statements amongst too many participants Fig. 2: Challenges in the preparation of financial statements
often represents an obstacle when there is a
lack of control and management. tive factor between one another. Because to errors occurring that need to be cleaned
various specialist departments are work- up in time-consuming additional rounds of
All too often, financial statements and ing in isolation, multiple entry of data processes, making the whole procedure that
group financial statements lack that integra- that already exist may result. This leads much more complex and inefficient.
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WHAT IS NECESSARY FOR EFFICIENT FINANCIAL STATEMENT PREPARATION?

Rapid, simple, and efficient consolidation is

really not that difficult: What are the crucial
key factors for the efficient preparation of
financial statements? In practice, the follow-
ing closely-related aspects turn out to be
important:
Planning and Use of a
Data integration
execution of the professional
• How effective is the overall compilation and data quality
compilation process consolidation tool
process coordinated and executed?
• What data sources and source systems
exist? In what quality are the required
data available?
• What tool/which solution is used for the
financial statement process?

Fig. 3: Key factors for efficiency with consolidated financial statements

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Standardized system instead of Many enterprises already recognize that

isolated solutions they need a professional solution for
the preparation of their financial state-
“In the past, we consolidated and ments. The options that Excel gives
planned everything using MS Excel. them are highly unsatisfactory. How-
More specifically, this meant that we ever, often different systems that are not
were using two standalone MS Excel co-ordinated with each other are used in
solutions that were not integrated specialist departments. Additionally, exist-
with each other. With this system, we ing software solutions are rarely updated,
quickly reached our limits in terms with slow reactions to changes in market re-
of analysis options, data validity, and quirements. Only when the system works so
speed. The error-prone nature of poorly that regular business operations are
adding rows and columns and the put in jeopardy, do managers see a need to
“destruction” of formulas and links act. But enterprises would be well advised to
created huge problems for us.” take action quickly and not to draw out deci-
sions for too long.
LEMKEN GmbH und Co. KG
Make your own assessment of whether your
solution meets current market demands by
using the following checklist:

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CHECKLIST: THE CHALLENGES THAT SUGGEST YOU NEED A CONSOLIDATION SOLUTION

Challenges

You dedicate too much staff time to the compilation of your financial statements, leading to high costs.
Fast close seems unattainable. 
Your individual companies use different ERP systems and there is no integrated interface for immediate and
automated data collection right through to source document level. 
You cannot simply import individual financial statements that use the applicable accounting standards from the
individual country units/subsidiaries. Neither is a transparent transition into the group possible. 
You lack transparency and clarity for postings in the preparation of your consolidated financial statements across all
time periods and throughout all of the process steps. 
You would like support from a wizard for consolidation postings and for automatic disclosure of exchange rate ef-
fects, minority shares, and appropriation of earnings both in actual and in planning figures. 
Complex intercompany reconciliation is a cause of is a cause of headaches for you. 
You wish you could have systematic process support throughout all of the steps involved in the preparation of
consolidated financial statements and in planning. 
Fig. 4: Checklist: software for consolidated financial statements

Do you answer most of these aspects with yes? Then you need to act - you need professional software for the preparation of financial statements.
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THE SOLUTION: RAPID PREPARATION OF CONSOLIDATED

FINANCIAL STATEMENTS BY USING THE RIGHT SOFTWARE

With professional software, you can

reduce the time spent on consolidated CASE STUDY:
financial statements by up to 80%, allowing CONSOLIDATED FINANCIAL STATEMENTS IN RECORD TIME
you to deploy your resources more efficiently.
Automated processes and integrated Enterprises operating at an international level rely on the efficient preparation of their consolidated financial
validation routines ensure that you will statements and on publishing their financial figures quickly. This is why the Thai Union Group, a seafood
achieve the highest level of data quality. producer with operations around the world, relies on LucaNet to design its complex consolidation process
– so that it can achieve a fast close.
How is this possible? By using advanced
features included in a professional software Thai Union uses the professional LucaNet solution for tasks such as:
package that will make your life in the finan- • Consolidation in accordance with Thai GAAP, IFRS, and US GAAP
cial department significantly easier. • Internal and external reporting
• Automated intercompany reconciliation
Professional solutions make it possible for
the consolidation run to simply be ini-
tiated at the touch of a button and to
The benefits for Thai Union:
Time savings: reducing the time needed for intercompany reconciliation
80%
operate in a way that is completely auto- Acceleration of the entire consolidation process time saving in
mated and works across group structures of Efficient and rapid reporting the consolidated
any depth. Even users without IT skills can financial statement
quickly find their way around LucaNet. Learn more at www.lucanet.com/en/references/thai-union-group-pcl. preparation process

And the best part: It’s not just about

consolidation. Good software will offer
centralized and decentralized planning for
the income statement, including integrat-
ed balance sheet and liquidity planning,
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with the help of various wizards. You’ll be GAS 2 or IAS 7, and all required analyses.
working with an integrated data model: Reporting is also well catered for: Profes-
For example, this can display the indirect sional software provides an integrated and
cash flow statement in accordance with automated reporting system with a pre-
defined layout. This makes it possible to
If your enterprise can succeed in calculate and manage bank covenants,
reducing the time needed to pre- statistical data, and other indicators.
pare financial statements through
Professional software therefore needs to
more effective consolidation, you’ll
be designed in such a way that it supports
have more time to analyze the you to manage processes across all steps
complex financial data. You’ll save of consolidated financial statement compila-
valuable time and unnecessary tion and planning.
costs, and can allocate staff to
more worthwhile tasks.
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THIS SIMPLICITY MAKES LUCANET

THE LEADER IN CONSOLIDATION SOLUTIONS

SIMPLY FASTER CONSOLIDATED SIMPLY THE HIGHEST DATA SIMPLY SAVE COSTS
FINANCIAL STATEMENTS QUALITY
Using professional software pays off: you’ll
Automation of many process steps reduces Rely 100% on your financial data: Automated save on staff time thanks to the high level
the manual workload for producing audit- processes and integrated validation routines of automation in the consolidated financial
able financial statements (fast close). reduce the error rate considerably. statement preparation process.

SIMPLY INTUITIVE TO USE SIMPLY BETTER WORKFLOW SIMPLY MORE TRANSPARENT

The entire LucaNet system can be admin- Complete control and transparency, thanks When using LucaNet, every single financial
istrated by professionals in the financial to integrated task management, meaning figure can easily be traced back to the under-
department – meaning you’ll have indepen- you’ll always have clarity over the current sta- lying business transactions from the balance
dence from your IT department. tus of the consolidated financial statement sheet, profit or loss, or cash flow accounting.
preparation process.

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SUMMARY

In the rapidly changing and globalized

business world, enterprises that can quickly
Tools/
prepare their financial statements have a Processes Integration
Features
significant competitive advantage. They can
react much faster to changing economic
conditions, allowing them to take the right Clear project definition Simple connection to Meet all regulatory
action sooner. To speed up the time needed and description of existing source systems/ requirements
processes financial accounting
for the preparation of financial statements,
Support with validation
it is advisable to conduct a thorough review
Definition of clear Preconfigured and IC reconciliation
of current processes within the organization
responsibilities and interfaces
and the traditional IT solutions which are tasks Completely automated
currently in place. In practice, there are a Complete integration consolidation run
range of required criteria that a professional Workflow-supported within one data model
solution should fulfill, if it is going to be able process for simple System-supported
to meet the challenges in financial depart- control and manage- currency conversion
ments. That’s because with professional ment for everyone
software for the preparation of consolidated involved Fast reporting
financial statements, you’ll reach your
goals faster, with more certainty, and more
efficiently – with the added bonus of now
being able to leave the office for your well-
deserved relaxation time. Fig. 5: Faster consolidated financial statements.
TAKING THE COMPLEXITY OUT OF FINANCE

Every day, we prove that managing financial data doesn’t have to be rocket science. Since 1999, our
user-friendly software solutions for Financial Performance Management have been in a class of their
own: automated processes that make your job a lot easier. A single tool that presents financial data in
a transparent, easy-to-understand way. Robust figures to back up every one of your business-related
decisions. And when you have questions, our consultants and software experts are here for you –
always.

For financial experts, by financial experts. Always fostering the most intelligent solutions. After all:
consolidation, planning, reporting, and data management know no limits – so why should we? We’re
constantly challenging ourselves, questioning the tried-and-true. And this is why we do more than just
create powerful applications: we create user experiences, helping you to fully grasp and navigate the
intricacies of your company’s finances and pave the way for a strong future.

Berlin is our home, but you’ll find us wherever reliable financial data is needed. With a growing national
and international presence and a strong network of partners, every day we’re that much closer to you.
And we’ve come a long way with our approach to rethinking finance: more than 2,700 companies in over
50 countries trust in LucaNet, including names such as FTI Touristik, edding, Leica, Roland Berger and
Vaude. Find out what they already know – and let us make finance easier for you, too.

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