Why dynamic reports reduce risk in intercompany reporting
All companies have reporting duties. For organizations with multiple legal entities, the reporting load is even heavier. That is particularly true for companies operating across different markets. We live in a time where there is more international trade than ever, coupled with increasing regulations - a combination that makes intercompany reporting highly complex.
By failing to report accurate group figures, companies can be charged with fines and other severe sanctions. Oftentimes, human error is the cause of intercompany reporting gone wrong. Is it possible to reduce the risk of human error in intercompany reporting? This article intends give an overview on how to create a safer framework for intercompany reporting in Bizview.
How to create a safer reporting framework
Bizview can handle anything from intercompany reporting in small, local businesses to large multinational corporations. In both cases, and to the extent possible, it is crucial to eliminate all types of risk that can incur when dealing with intercompany reporting and eliminations.
In Bizview, we have:
EXPAND (row expansion)
Dynamic columns (column expansion)
Subtotal (possibility to group rows)
This allows you to create a framework to calculate both vertically and horizontally in a report - completely automatized - based on your selection in the selection pane. This is particularly effective if you, for example, would like to build a counterparty report and see what the counterpart transactions looked like for a period.
To put it short – when creating a dynamic structure for your intercompany reports, make it as dynamic as possible! In that way you can maintain your reports with structures such as “Account group”, “Counterpart” and “Legal Entity” instead of having to build multiple reports, which are time-consuming to create and to maintain.
Anything that adds elements of added need for maintenance and manual input, also increases the risk for human error. With dynamic reporting, the users of the reports will not need to maintain any separate account groups, instead only use the row and column features that could be automatically built into the solution.
Are you or your customers interested in reducing the risk in your intercompany reporting? Please contact us or one of our partners for more information.