Private equity firms often have an ever-flowing list of companies for which they need financial consolidation and accurate, timely reports. These organizations frequently use different enterprise resource planning (ERP) systems and charts of accounts. Moreover, many organizations manually update spreadsheets to load trial balances and create financial reports.
Manual spreadsheet entry can lead to a constant challenge: accurately reporting financial data in a timely manner. Traditional methods, like relying on Excel spreadsheets, can become cumbersome as the number of companies increases. This article explores the roadblocks of manually consolidating financial data in spreadsheets and how Solver, a specialized reporting and planning tool, can help streamline the process for private equity firms.
The Pitfalls of Spreadsheets
Excel spreadsheets, while versatile, have limitations when dealing with complex financial consolidation for multiple companies. As the number of companies grows, manual spreadsheet updates can hinder scalability. Key issues include:
- Slow Calculations: Large data sets and complex formulas slow down processing.
- Version Control Chaos: Keeping spreadsheet data consistent and up to date requires significant manual effort.
- Data Integrity Risks: Manual data entry and formula updates increase the risk of errors.
Solver: A More Efficient Solution
Solver offers a powerful, cloud-based alternative to spreadsheets for financial reporting in private equity. Here’s how it can help streamline processes:
- Efficient Data Handling: Solver can handle large data sets efficiently. Unlike traditional spreadsheets, Solver operates in the cloud, avoiding the sluggishness often associated with local files.
- Automated Consolidation: Solver combines data storage, updates, and consolidation seamlessly. By reducing manual effort, the risk of reporting errors decreases.
- Versatility: Solver isn’t limited to financial consolidation alone. It can be used for budgeting, planning, and scenario analysis, too.
Beyond Consolidation: Budgeting & Dashboards
Solver can help private equity firms streamline their financial processes, enhance data accuracy, and stay ahead in a competitive landscape. It can be used for:
- Budgeting & Financial Planning: Solver allows for scenario planning and creating pro forma financials.
- Scenario Analysis: Readily explore different financial scenarios.
- Integration & Interoperability: Solver seamlessly integrates with other tools—like ERP systems, Power BI, and more—enhancing the overall financial reporting process.
- Data Warehousing: Use Solver as your data warehouse or connect it to existing data warehouses for streamlined data flow and enhanced reporting.
- Dashboards: Use Solver as a data source for creating dashboards using Power BI and Tableau.
Conclusion
For private equity firms managing multiple companies, Solver offers a significant advantage over manually consolidating financial data in spreadsheets. By automating data flow, improving data integrity, and handling large data sets efficiently, Solver can help empower private equity firms to streamline financial consolidation and produce accurate, timely reports.
Business Technology Services at Forvis Mazars is a partner of Solver Global, and our experienced team of technology consultants can help you get up and running with Solver. Connect with us today to learn more or request a demo.