Corporate financial reporting is a critical aspect of business operations, especially for multinational corporations. In this guide, we will explore the key foundations of financial reporting and how to effectively use financial statements for corporate clients.
Key Foundations of Financial Reporting
Over the years, we’ve found that the financial requirements of corporate clients across different regions and industries are quite similar. Here are the four key foundations that every client requires for their financial reporting:
- Flexibility in the creation and usage of financial statements: This allows for customization based on the unique needs of each corporation.
- Support for local and corporate currency in the same application: This is crucial for multinational corporations operating in different regions.
- Support for calendar date and fiscal date: This ensures accurate and timely financial reporting.
- Ability to consolidate data across all legal entities and financial dimensions: This provides a comprehensive view of the corporation’s financial status.
Creating and Using Financial Statements
Financial statements are created with a tabular editor connected to a tabular model. They come in the form of calculation groups, with each financial statement line being one calculation item.
Once deployed and published, these financial statements can be viewed in BI4Dynamics. The row definition of the calculation statement is part of the financial module, allowing for the integration of any dimensions, such as date, company, and department.
Nesting GL Accounts
Nesting GL accounts is a useful feature that allows for a reduction in excessive detail in the original financial statement. This is particularly beneficial when dealing with a large number of lines in the financial statement.
Customizing Financial Statements
Financial statements can be customized to suit the specific needs of the corporation. This includes time intelligence comparisons, formatting, and focusing on particular parts of the financial statement.
Base for Visualization
Financial statements provide an excellent base for visualization. They allow for the definition of KPIs that are not only a summary of GL accounts but also formulas. This enables the creation of appealing dashboards that can be used with any limited financial dimensions.
You can explore more from financial dashboards in this BI4Dynamics Live demo.
ACY Currency for Reporting
Note: This blog post is based on the video “Corporate Financial Reporting” by BI4Dynamics.
For international businesses, analyzing businesses in different currencies can be a challenge. BI4Dynamics provides an additional currency for reporting, allowing for analysis through corporate accounts. All transactions are transferred with the last available exchange rate, enabling accurate and efficient financial reporting.