In the current business environment where change is constant and technology advances at an incredible speed, accrual accounting offers significant advantages over traditional methods. Since accrual accounting is done in real-time in compliance with GAAP, it enables organizations to take better cost management and budgeting initiatives, improve accuracy in financial statements, and give business owners a better financial picture of the company.
Apart from being adequate to handle the rising complexities of business activities, it largely helps to foresee the financial trends and optimize financial management function which can benefit the organization in a big way. In simple terms, accruals make it easy for business managers to plan the future, as pointed out in a World Bank report.
In the intelligent era of business, executives cannot afford to rely on traditional spreadsheets and emails with close financial checklists for accruals accounting. The market continues to be highly volatile and organizations need sophisticated and robust tools to streamline the various finance functions. That is where SAP S/4 HANA can be of great help as it helps organizations to become smart and intelligent and drives operational excellence.
In a traditional approach to accruals processes, accounting professionals face numerous challenges as they need to aggregate data from diverse sources and deal with different calculations and logic methodologies which altogether leads to the massive manual effort. Consequently, the accruals are prone to errors when it is done manually which leads to the ineffectiveness of the whole method. Besides, organizations lack transparency on how accruals are calculated and its overall influence on various KPI’s.
By taking advantage of the accrual management capabilities in SAP S/4 HANA, organizations can overcome the challenges involved in incoherent manual accruals processes. The latest version of SAP S/4 HANA enables businesses to take on highly automated processes which will make accruals management effective and accurate. It integrates data from multiple sources including purchase orders, manual accruals and spreadsheets to a unified accrual data structure and offers a single source of information for the user.
The key benefits of migrating to SAP S/4 HANA 1809 version are summarized below:
- Coherent automated processes with consistent outcomes
- Enable comprehensive automation of process chains for purchase order accruals
- Negate errors by reducing manual efforts and manage accruals accurately
- Reduce complexity with a unified source of information
- Full transparency and auditable
- Higher accuracy and better analytics
VisionTree works with organizations to automate its accrual management processes by migrating to SAP S/4 HANA latest version and support its pursuit to become smart, proactive and intelligent. We help global enterprises to run, quick, precise and streamlined closing processes that comply with GAAP standards. We have a great team of erudite professionals to help you leverage the power of SAP S/4 HANA to optimize various functions in your business and thrive in the competitive business environment.
If you contemplating strategies to automate your accrual accounting processes, allow our experts to help you.
To learn more about leveraging the power of SAP S/4 HANA, please reach out to us.