One of the key challenges in a high-growth company is the ever-increasing complexity of financial reporting. As new entities are brought into the corporate umbrella either through organic growth or via mergers and acquisitions, the company must be able to accurately report financials—something easier said than done.
Our client is a leading global restaurant franchisee and investor with various real estate holdings in hospitality and retail. With diverse holdings in several lines of business, you can imagine that financial reporting posed a challenge, particularly given financials for each line were being reported and processed separately via a tedious, manual process. Consolidated reporting and preparing income statements was an arduous error prone task, causing inefficiencies. The company decided they needed to simplify their financial systems and sought a solution to make real-time, company-wide reporting a seamless process.
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With more than 400 legal entities, transitioning to one consolidated system posed a challenge. We were called upon to help our client weigh their options and ultimately build a consolidated financial system based on Oracle Cloud ERP.
Cloud ERP Serves Up Results
In Oracle Cloud ERP, use of reference data sets, allows master data to be shared among all businesses. Also, data access sets were leveraged to architect a model which created efficiency and visibility into financials.
We were able to improve the timeliness and ease of financial reporting for our client by consolidating all companies in one general ledger, with financial reports built using account and company hierarchies (roll-ups). With the new reporting structures, manual inefficiencies were eliminated. The balance sheet and income statement are available with real-time transaction balances. In addition, the ability to drill down and drill-back on all financial report balances provided a much desired level of visibility.
Real-time analytics with Oracle Transactional Business Intelligence (OTBI), enables true self-service reporting, allowing associates to build their own reports and answer their own questions to drive business.