Not Knowing Financial Position

  • Inter-company transactions must be entered manually in each company.
  • Transactions are re-keyed into multiple databases.
  • There are errors.
  • Transactions do not get recorded in all companies.
  • They get recorded incorrectly resulting in difficulty reconciling the inter-company balances.
  • Time is spent re-keying budget data from spreadsheets into the GL so budget vs. actual analysis can be performed.
  • You cannot easily transfer information between the general ledger and Excel for creating and updating budgets.
  • You do not have a mechanism for creating base line or blank budgets utilizing the information within their general ledger.
  • You are unable to link back or drill down from Excel to see more detail on the GL account.
  • You are overspending and not realizing the true cash position.
  • You are unable to perform ‘what-if’ scenarios.
  • Unknown how to re-key information onto spreadsheets to perform ‘what-if’ cash scenarios.
  • It is cumbersome and error prone.
  • It is difficult to update when underlying data changes.
  • Cash flow is viewed as a report and there are little or no drill down capabilities.
  • Users are required to manually search for transactions included on a cash flow report.
  • Much time is spent researching transactions.
  • You are unable to see both posted and un-posted transactions.
  • Reports are cumbersome and error prone.
  • They are difficult to update when underlying data changes.
  • You are missing out on potential investment opportunity because of not seeing full cash flow picture.
  • Your accounting staff has to re-key information for fixed assets acquired via a purchase order or vendor invoice.
  • They forget to create new assets records and therefore miss out of tax deductions due to misplaced assets.
    There is a risk of potential theft if the company has no record of the asset and therefore they might not miss it.

About the Author: AJ Amjad Khanmohamed

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