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CCH Tagetik Consolidation: Simple, Fast, Transparent

Oct. 4 2017 by Tina Cvar, Accounting Director - Zavarovalnica Triglav

Consolidation & Closing

When thinking about how to recap the benefits of using CCH Tagetik for the consolidation process, I could not think of a better way than to simply describe my personal experience.

Eight years ago I was hired by Triglav Insurance Company with the main responsibility to establish a solid consolidation process. At that time Triglav had approximately 50 subsidiaries that spanned a wide range of industries – all operating in many different countries with different exchange rates. And to further complicate things, these entities used different ERP systems.

The consolidation process at that time was a totally manual process based on Excel spreadsheets. I cannot describe how painful and time consuming this process was. Data collection from our subsidiaries was slow and data quality was poor. Reconciliation of intercompany transactions was practically impossible. And then there was the challenge of incorporating new companies from ongoing mergers or acquisitions into the process. Since the entire Excel-based process had to be managed by a single person, we couldn't expedite the process by adding staff resources. 

The saddest part of this story is to admit that I honestly did not have a clue about the numbers. I spent all of my time solving technical issues, checking formulas, and verifying links. I did not have time to even think about analyzing the data.

CCH Tagetik Consolidation in Triglav
It was soon more than obvious to me that we need to find an IT system that could support our consolidation process. Even though Excel is a great financial tool, it was painfully clear it was inadequate to handle our complex process.

When we analyzed our options, we first had to decide whether to implement a standardized ERP system across the entire group or to focus on finding a good reporting system that could handle imports from multiple ERPs. This was an easy decision. Switching to new ERP system would take far too much time and could be potentially disruptive to operations. We elected to implement a solution that would simplify the reporting process for the reporting entities, while, at the same time, build a stable consolidation process for the parent company.

Among all of the providers evaluated, CCH Tagetik was the only solution at the time that used an Excel interface. This was a huge plus for us, since it meant that we would not have to change our reporting package. All of our subsidiaries could fill out the same Excel spreadsheets they were already used to working with.

Based on its feature set, I also recognized that the CCH Tagetik solution was built by people who understood the pain and challenges inherent in the consolidation process – collecting the data, managing the legal structure, performing cross-currency calculations, calculating non-controlling interests, and providing reliable audit trails.

Another great feature was the Inter-Company Matching Cockpit. Previously, when using Excel spreadsheets, we had to wait for all entities to send us their reporting packages before we could check intercompany relationships. Complete reconciliations could never be performed no matter how much time we invested. With CCH Tagetik, the reconciliation process was easy and transparent. Ultimately, it has allowed us to push down the responsibility for reconciliation to all reporting entities. This process is performed now independently by reporting entities and does not interfere with other consolidation processes. So based on the solution's features and the people behind it, we selected CCH Tagetik. It turned out to be a great decision. The staff was highly qualified and highly responsive throughout the implementation process allowing us to build a successful partnership with the company.

I am very proud to say that within two years and with a great support of CCH Tagetik, we were able to shorten our consolidation process to four months. Now we finish our consolidation process within one month after the reporting period. After that, we need an additional month to write a full annual report. The consolidation process is now stable, and we have complete control over the reporting entities and numbers. We also have enough time to analyze the numbers.

CCH Tagetik also gave us the ability to collect monthly data and prepare consolidated financial statements on a quarterly basis. With CCH Tagetik, we were able to build a faster and transparent consolidation process. We now have reliable data to support high-level management decisions, in addition to meeting legal requirements.

Over the years of using CCH Tagetik, we have seen other benefits. For instance, the reporting process used to be siloed for each entity. With CCH Tagetik, the reporting process became very transparent for all reporting entities. Subsidiaries became more involved in the whole process and they were suddenly able to see the reporting status of other entities, which encouraged a form of internal competition. From that moment on, we did not have to remind entities anymore about the reporting deadlines.

Last but not least, our auditors love CCH Tagetik because it enables them to go through the process, to perform all checks and controls, and to print out all audit proofs. The solution meets all requirements regarding audit trails and traceability.

In conclusion, CCH Tagetik has been a game-changer for our consolidation process and an important asset to our organization. If you're still struggling with your own consolidation challenges, I urge you to check out the solution.

Don't wait and discover more about CCH Tagetik Consolidation!


CCH Tagetik Consolidation in Triglav

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