Still Using Excel for Currency Consolidations and Financial Reports?

At a hedge fund event here in NYC last week, we spoke to a CPA and found that she is still doing financial reporting and currency tracking in Excel.  While this isn’t currently illegal, it is frowned upon by auditors.  With the globalization of the world’s economy, many companies are venturing into international markets, which may be great for your business but can be extremely challenging for your finance department. They have to worry about foreign currency markets, deciding on daily versus monthly exchange rates, selecting a reliable source for exchange rates, figuring out which GL accounts should revalue, which shouldn’t revalue, etc. This can make it tough to perform monthly consolidations, much less ensure their 100% accuracy.

Dynamics GP | Microsoft Management ReporterMost companies start by doing all their foreign currency translation calculations offline in Excel. Some look up the exchange rates manually, figure out what the monthly average rate should be for their P&L, then calculate the CTA adjustment. The problem here is that now you have financial data outside your financial system.  Actually, there are other problems with using Excel for financial reporting:

  • Spreadsheets are desktop-based and individual-centric;
  • Manual data entry, and the fact that the formulas used for calculations are set-up by the spreadsheet author, can lead to deliberate or accidental data manipulation;
  • Excel has no auditing controls for SOX or Basel II regulatory compliance;
  • Excel has no easy way to drill down to underlying data; and
  • There is no mechanism for scheduling refreshes or automating actions based on a triggering condition.

Microsoft Management Reporter works in conjunction with the currency enhancements in Microsoft Dynamics® GP, giving you the ability to create financial statements in a specific reporting currency.  With Management Reporter, you can create boardroom-quality reports without IT assistance, get updated instance documents by simply changing a date, and take advantage of secure report distribution and storage through the centralized Report Library.

Management Reporter integrates with the general ledger (GL) in your Microsoft Dynamics GP or any Dynamics ERP solution, so there is no need to create a custom connection to your primary data source. Gain native support for 64-bit operating systems and enhanced globalization capabilities; easily scale data volume and number of users with the robust back-end architecture of Microsoft SQL Server; and realize support for multiple languages and language characters.

If you think you may be among the many businesses that need help navigate the new global economy, contact us.   We are experts in the implementation of Microsoft Dynamics GP, and because it comes with all the modules you’ll need to, it is the obvious choice for your financial reporting and broader business management needs.