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Financial Close and Consolidation

Ventana: Continuous Accounting Helps Companies Close Faster

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Ventana Research, an authoritative and respected market research and advisory services firm, recently looked at Revelwood’s partner Fluence Technologies and how the company helps organizations automate tasks for faster monthly, quarterly and annual closing. 

According to Ventana, by 2025 two-thirds of midsized organizations will have applied continuous accounting principles to close their monthly books within one business week. A key objective of continuous accounting is achieving a fast, clean close. 

This is part of a larger digital transformation of accounting departments, which aims to eliminate manual tasks such as consolidations and reconciliations by using software automation. 

The firm’s Smart Close Dynamic Insights report shows:

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  • 56% of organizations close their month within six business days 
  • 40% of organizations complete their quarterly close in six business days
  • 69% of those that automate all most of the close process complete the quarterly close within six days
  • Only 29% of companies that only use some or no software automation close within that six-day window

Ventana states, “Financial executives who are committed to enabling their finance organization to play a more strategic role in their company should focus on ways to streamline their close process.”

Read the full piece on continuous accounting and Fluence Technologies.

Read more about Fluence Technologies:

FP&A Done Right: The Role of Narrative Reporting in ESG

Fluence Technologies Earns “Outstanding” Overall BPM Pulse Rating from BPM Partners

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Ventana Research on Intercompany Financial Management

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Ventana Research, an authoritative and respected market research and advisory services firm, defines intercompany financial management (IFM) as a “discipline for structuring and handling transactions within a corporation and between its legal entities.” It maximizes staff efficiency and accounting accuracy. It also optimizes tax exposure, minimizes tax leakage and “ensures consistent tax and regulatory compliance.”

According to Ventana, “by 2026, one-half of organizations with 10,000 or more employees will have implemented IFM to achieve tax, risk management and accelerated financial close benefits.” The research firm states, “Typically each instance of an IFM issue is relatively small, but in larger, multinational corporations, the money involved adds up to a meaningful annual cost.”

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Large, multinational corporations have very complex systems and processes – often exacerbated by having several different ERP systems. Ventana’s Next Generation ERP Benchmark Research finds:

  • Two-thirds of organizations with more than 1,000 employees have more than one ERP system
  • 27% of percent of these organizations have more than four ERP systems

IFM provides these companies with a way to capture the “required attributes of intercompany agreements and streamlines intercompany dispute resolution and handles taxes with an integrated tax engine to maximize tax deductability.” 

Ventana states, “Being strategic in accounting is all about flawlessly managing the details, especially in areas of hair-curling complexity.” 

Read more about Ventana’s thoughts on intercompany financial management.

Revelwood’s partner, BlackLine, provides software for intercompany financial management and other accounting activities.

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