Case Study:
Global Insurer consolidates three international operations into a consolidated financial close.
The Challenge
This company’s growth had resulted both in the purchase and creation of local insurance subsidiaries. These subsidiaries had their own local regulatory reporting requirements and accounting standards; however, the company still needed to consolidate all results to a corporate US GAAP equivalent. Their technology landscape evolved to have separate data warehouse and financial systems purchased specifically to support these local subsidiaries.
Due to the variations in accounting standards between the US GAAP parent and local entity reporting, the finance team spent a significant amount of resources balancing financial statements between group companies.
The Result
A consolidated USGAAP financial result could now be produced simultaneously along with local reporting requirements which utilized different earnings patterns and calendar closing dates. Providing a clear an auditable ability to tie complex group results together.
Three local reporting platforms were sunset resulting in a $750K annual savings to the company.
Staff resources previously allocated to performing intercompany reconciliations were reassigned to other analytical functions providing value to the organization.
“By implementing the Phinsys Product Suite – we have been able to sunset three local reporting platforms. This has reduced our IT expense base for these operations and allowed them to reinvest in other technology solutions to grow their business.”
“We have been able to achieve a significant reduction in the finance team assigned to performing intercompany reconciliations. The streamlined reconciliation process has made audit reviews a simple exercise.”