As a former accountant, I’m all too familiar with the financial close, consolidation, and reporting process. For over seven years I executed the monthly ritual of collecting and consolidating financial results from multiple entities and systems, managing all the supporting steps in the close process including account reconciliations, and reporting results to internal and external stakeholders. This process was highly manual back in the early 1980s when I did this using archaic technology and took 20+ business days or more to complete.
We’ve come a long way in the past 30+ years and this process is more easily managed with today’s modern technology. So what is the state of the art in financial consolidation, close management, and reporting? What are the key customer requirements and how do the various vendors in the market address them? Read on to hear the highlights of the recently published Dresner Advisory Wisdom of Crowds® Financial Consolidation, Close Management and Reporting Market Study and why OneStream received the overall highest rating among vendors covered in the report.
The Wisdom of Crowds Speaks
Dresner Advisory Services has published a market study for the past several years on Enterprise Performance Management (EPM), but this has focused mostly on the budgeting, planning, and forecasting aspects of EPM. In 2021, they expanded their EPM survey to include market requirements and vendor capabilities around Financial Consolidation, Close Management, and Reporting.
According to the report – as a subsegment of the EPM market targeted specifically at the office of finance, FCCR includes the following capabilities:
Financial consolidation systems which allow organizations to combine and aggregate financial data from multiple operating entities to produce an overall consolidated financial view of the group’s operations.
Close management systems which allow the finance function to control and manage the process of closing the books on a monthly, quarterly, semi-annual, and annual basis. These systems often include tools to facilitate a faster period-end close (for example, reconciliation management).
Financial reporting solutions which are analytics and reporting tools targeted at finance and line of business users. These tools allow users to analyze financial actual and budget data on an ad hoc basis using financial report layouts such as profit and loss statements and balance sheets.
Here’s a summary of some of the key market trends highlighted in the report:
Rating FCCR Software Vendors
Vendors whose FCCR offerings were evaluated in this market study were rated based on the following capabilities:
So how did OneStream stack up against these requirements? Well, I am pleased to report that OneStream received the overall highest rankings across the 5 scoring categories: Financial Consolidation, Close Management, Financial Reporting, Architecture, and Total Score.
According to the Dresner Advisory report, Financial Consolidation, Close Management and Reporting (FCCR) is a fairly mature market with 62% of all organizations, and almost 75% of large enterprises have adopted a software solution. However, we know that most of these organizations are likely relying on legacy, on-premise FCCR solutions that are outdated and may be going off support. So many organizations are evaluating their options and considering upgrades to more modern, cloud-based FCCR solutions.
Download the Dresner Advisory 2021 Wisdom of Crowds® FCCR Market Study to learn why OneStream received the overall highest ranking among the vendors evaluated and contact OneStream if your organization is ready to make the leap from legacy applications or spreadsheets that may be holding your Finance team back from leading at speed!