Checking and crosschecking – this cumbersome procedure can take up to 70% of an accountant’s time in the enterprise-tier company. Does keeping in mind the numbers from various journals make a good accountant or a controller? We doubt that. Modern solutions tend to automate journal entry and financial closing activities, but the reality is different. Why do big companies still struggle with period-end journal entry management, and why do you need an API-based* journal entry management system to have well balanced journal management and closing processes.
Manage data directly in the ERP database
Sometimes enterprise tier companies have difficulties with their ERP instances. Because of their size, they can be composed of multiple business units / legal entities, many of which may use their own ERPs and financial applications. Extracting all those slightly different formats of financial data (not to mention foreign currencies) for the calculation of period-end journals can be challenging. This is the reason file-based integration appeared – financial data is manually extracted from the ERP system into a file (often an excel spreadsheet) where journal calculations are made before being uploaded back into the ERP system.
Information in that file is a source of elevated risk – what if something was copied incorrectly or was revised after the copying? Therefore, accountants and controllers are spending sleepless nights, trying to re-check everything manually. Is there an alternative? Direct API integration financial tools, like Aico, can solve these problems finally. The idea is that Aico can connect LIVE to your ERP system/s (whether it be SAP, Oracle, Microsoft, or virtually anything else) and validate and post journals using live data from the ERP.
Add transparency to journal entry management process
Effective journals management and automation is making all the difference. API integrations allow the Aico solution to connect to multiple instances of the same (or different ERP) systems simultaneously, which allows user to manage the complete set of journals – live! There are many additional features that helps to tackle risks – especially during the close process. Look for yourself:
Templates support the creation of many standardized journals with as many lines as required. The templates enforce standardisation, preventing formatting errors.
Moreover, correctly configured templates can save you a lot of time. For example, Aico enables easy posting of recurring journals, provisions and allocations. Workflow automations can create fully automated workflows for most standard (and not only) journaling scenarios.
Recurring journals templates are the fastest way to save time. Many period end postings have a recurring basis, and Aico provides the ability to create recurring journals that will automatically attach recurring supporting documents and work in a simple and predictable pattern.
Roles management helps to give access to specific journals only to specific people who really should be working with them.