Dedication to Excellence through Smart Automation in Finance and Accounting: A European Engineering Multinational Case Study

A European Global Engineering Conglomerate with operations spanning over more than 45 countries entirely transformed its Finance and Accounting System in the recent past. Financial data reliability has acquired the greatest significance through Smart Automation in Finance and Accounting and helped propel this giant corporation on a high growth trajectory.

Founded in the early 30s in the last century, this Multinational Engineering major is a famous name in global Industry circles and has multifarious business interests in different fields such as AC Drives, Appliance controls, Compressors for Heating and Refrigeration, Sensors, Steering and Switches, and many more. The facilities have more than 50 factories in almost 20 countries and employ more than 20,000 people across the world.

The company’s global operations were effectively handled by its talented workforce however an immediate need was felt for combining assets, liabilities and other financial items of several subsidiaries and multiple business entities within the organization, and rolling it up to the parent organisation for reporting purposes.

The company recently streamlined its business operations across all geographics and improved financial controls by customizing available ERP through Smart Technologies. Error-free numbers in Accounting processes resulted in more accurate, reliable and standardised financial statements, and game-changing decisions in diversified business areas to keep pace with rapid urbanization and ever-expanding customer base.

The Journey towards Excellence

The top management of the Engineering conglomerate realized that finance and accounting solutions required to address some immediate challenges like the absence of standardised accounting practices and inadequate financial control, and global visibility.

As consolidation of Financial Statements with all subsidiaries reporting under the umbrella of the parent company became urgent and critical, a worldwide search had been initiated for the right source of a comprehensive web-based application that delivers global financial consolidation, reporting and analysis in a single, highly scalable software solution.

An innovative global leader in consulting, technology, engineering and digital transformation services also based in Europe had then been identified as the perfect partner by the company to explore and address the most appropriate solutions in the cloud and digital platforms. The familiarity of the service provider with its client’s processes as well as an eagerness to align with their vision played an important role in its selection.

On selection and engagement as a partner of the Engineering Global, the consultancy services provider designed, developed and implemented the much-awaited standardised accounting processes in the areas of the Accounts Payables (AP), Accounts Receivables (AR) and General Ledger(GL) across all the subsidiaries and global business entities. The project termed as Global Process Model (GPM) also included updates and travel expenditures in more than 40 countries.

A huge success in GPM created another partnership for the consultancy services provider and the next project of One ERP for All (OEA) was launched and standardized, and aligned different ERP platforms into a single one. Business Process standardization and ERP platform integration then ran side by side and gave birth to a single cohesive finance and accounting process model.

Smart Automation Supported the Journey

A unified system of automation and global enterprise model coupled with the GPM already launched made the success story for both the consultancy company and the Engineering major and quickly transformed the business operations and realized cost savings.

The automation introduced by Europe based accounting services through its Global Enterprise Model improved the accuracy and reliability of the client’s financial processes and resulted in significant cost savings in terms of Government liabilities and correction efforts.

A Global Company Model designed for its clients helped the Engineering Multinational to automatically generate a global calendar with all important events such as the important milestones, local and global assignments at hand, and all regulatory reporting deadlines.

The Partnering of two Global companies with an aligned vision brought in Smart Automation and helped timely closing of Books of Accounts and easy reconciliation of Balance Sheets, for the client. Robotic Process Automation (RPA) introduced by the consulting services helped the Engineering Company to effectively record all supplier and customer transaction data smoothing out the AP and AR processes of accounting.

Closing and reconciliation of the Balance Sheet never been so simple and easier on a global level with the adoption of automation tools and also became much convenient for the accounting professionals engaged in this process.

Recording and reporting went in tandem with the newly introduced automation and ensured financial reporting on time every time without any need for manual correction of mistakes in the reports. Approximate 30% reduction in accounts closing time could also be achieved.

Most noteworthy was the appropriateness of Automation and Robotics solutions and its effective implementation for various business processes including an update of foreign exchange rates and reconciliations between companies. Smart automation resulted in almost zero manual intervention and mistakes.

Many Roads were paved with Gold

Financial decisions made easy with error-free timely reporting of financial reports due to the Global Company Model launched and successfully implemented by the accounting consultancy services. A few of many benefits the Multinational Engineering conglomerate derived from this Smart Automation were

More than 50 standardized Record to Report Processes.

Strategic use of Accounting service provider's onshore and offshore data delivery centres for alignment of business processes.

Considerable reduction in days sales outstanding.

World-class AP systems and many happy suppliers.

More accurate and reliable accounting processes.

Smooth flow of financial information across all group business entities.

Faster closing of accounts through the intercompany financial hub for strategic business decisions and regulatory compliance.

Takeaway

Smart Automation helped the European Multinational in smooth navigation through competitive and uncertain business environments with solid finance and accounting solutions.

Smart Automation also made the company more resistant to the complex and dynamic nature of the present-day business and ready for tapping the unlimited potential of the global delivery model combining scalability, efficiency and collaboration.