Coordinating intercompany tasks across the organization at month-end is complex and difficult due to the sheer volume and interdependency of tasks and tight deadlines. This delays the financial close. Leading consolidation solutions have failed to address this challenge because the underlying reconciliation process has not been well automated. Redwood plugs those gaps with advanced automation and collaborative workflows that allow intercompany differences to be identified earlier in the month and reduce the manual burden during the peak close period.
40% of senior finance professionals say difficulties in reconciliations and intercompany agreement is what delays the reporting process the most
Material intercompany differences often only come to light late in the close cycle when other matters take priority. With staff effort focused on more pressing tasks, organizations are forced to simply accept the intercompany differences and postpone a full reconciliation until the next period.
Redwood’s cloud-based finance & accounting automation avoids this peak month-end workload stress by identifying intercompany differences much earlier in the reporting cycle. The intercompany process becomes a ‘preliminary close’ in advance of the usual reporting cycle and helps make your close a non-event.
The ability to view intercompany differences earlier in the reporting cycle allows individual companies within the group to take the necessary remedial action and correct their positions before a consolidation is attempted. Redwood’s cloud-based finance automation solution allows companies to retrieve invoice details from ERP systems to help reconcile intercompany differences at a detailed level. And once the differences are resolved, adjustments can be posted directly into ERP systems without the need to manually post reconciling journal entries.
Redwood’s finance automation allows supporting documentation to be stored digitally with the relevant intercompany journals, which means subsequent journals can be posted with a full audit trail. We help you cut down on paperwork and improve the accuracy of your accounting records.
Intercompany reconciliations represent a significant manual and time-consuming effort during the close and issues often only come to light late in the cycle. Finance automation allows companies to identify intercompany differences ahead of the group financial consolidation stage where they are difficult to resolve. This clears the way to accelerate the entire close process.
To find out more about how Redwood can help accelerate your close
Intercompany is just one of Redwood’s pillars of finance automation. The others are:
Redwood plugs the ‘automation gap’ that still leaves your people with lots of unnecessary manual work. Our comprehensive SaaS finance automation solution offers a flexible and modular approach that allows you to address your most critical issues first, then create a roadmap to automate the rest of your R2R processes.