1. Over-reliance on spreadsheets
The problem:
Manual data entry in spreadsheets leaves too much room for human error. One wrong formula, one more zero or overwritten cell, can throw off an entire report — and spotting it can take hours.
The fix:
Invest in a system that automates data gathering, validation, and consolidation. You’ll still have full control over your numbers, but without the risks of endless spreadsheet reconciliations.
2. Late or incomplete data from entities
The problem:
If subsidiaries or departments send their figures late (or only send partial data), the whole close process stops. When key numbers are missing, your team has to rush to fill the gaps at the last minute. This often means making quick fixes without enough time to double-check them, which increases the chance of mistakes and inconsistent results in your reports.
The fix:
Set clear deadlines, communicate expectations, and track submissions in real time. Starting data collection even 3–5 days earlier can give you breathing room to resolve issues before the close.
When every entity works differently, your close turns into a puzzle instead of a process.
3. Inconsistent accounting standards
The problem:
When different entities use different accounting methods, you spend valuable time reclassifying and adjusting numbers to match corporate standards.
The fix:
Standardize your reporting formats and policies across the business. A shared template and clear guidance help ensure everyone’s speaking the same financial language from the start.
4. No centralized system
The problem:
If your data is scattered across emails, spreadsheets, and shared drives, visibility suffers. Without a clear way to see what’s happening in real time, you can’t easily tell how far along the process is. This makes it hard to spot exactly where things are getting stuck or which teams are causing delays, so problems take longer to fix.
The fix:
Adopt a centralized consolidation platform where all entities can submit, review, and approve data in one place. This not only improves visibility but also speeds up approvals.
5. Minimal automation
The problem:
If your consolidation still relies heavily on manual processing, each step takes longer — and the risk of human error increases.
The fix:
Automate repetitive tasks like intercompany eliminations, currency conversions, and report generation. Your team can then focus on analysis and strategic insights instead of chasing down numbers.
Automation doesn’t replace people — it gives them back the time to think, analyze, and lead.
The bottom line
Each of these challenges can be addressed with a combination of process improvements and the right technology. By reducing manual work, standardizing inputs, and using automation, you can close faster, improve accuracy, and free your finance team to focus on the bigger picture.
Suppose you’re ready to streamline your consolidation process. In that case, tools like IBM Controller can help you automate workflows, ensure compliance, and give you a real-time view of your financial health — all without relying on IT.
Download our free e-book: “How to Improve Your Financial Consolidation Process” to learn how leading finance teams are making consolidation simpler, faster, and more accurate.
