Processes for financial accounting and controlling become more complex and intricate each year. Long gone are the days of paper filing and manual paperwork, mainframe computing, and early ERP systems. Even today’s fully cloud-based ERP systems are barely sufficient to handle the needs of evolving business practices, competitive global markets, and new AI and blockchain technologies. That’s why experienced SAP FICO Architects like Parveen Singh Hoshiar Singh are now helping businesses move from legacy systems to SAP FICO to achieve new levels of efficiency in their financial processes. The Challenge of Integration SAP finance module integration is certainly not as simple as flipping a switch. With over twenty years of experience in SAP FICO, Parveen Singh has found that most major bottlenecks occur in general ledger reconciliations and data conversion, a topic he has written about extensively, including in this article. In two decades of helping companies automate their financial accounting and controlling processes, Singh has found that companies frequently see a high rate of financial reconciliation errors before migrating their data into an integrated SAP FICO system. This is especially the case for businesses still relying on a functional yet inefficient hodgepodge of obsolete manual systems and various software applications that do not communicate with each other. In one such case, Singh found that before data migration, 15% of the company’s total financial transactions contained reconciliation errors. Shockingly, different balances appeared in three places in the company’s records: the general ledger, accounts payable, and accounts receivable. “Most of these errors required considerable time to detect and rectify,” Singh notes, “while they undermined the credibility of the financial reports produced by the legacy system.” How FICO Bottlenecks Cost Companies These inefficiencies meant that financial reports were not always delivered on time, and personnel hours were wasted adjusting the numbers for month-end close. Besides the cost of personnel hours and the delays in reporting, the high error rate meant that executives could not always be confident in the accuracy of their financial data. This led senior management to question whether they could make informed decisions. In a competitive and rapidly changing market, this lack of confidence can be a critical weakness. One additional hidden cost of an unintegrated system is the IT expenditure required to keep outdated legacy systems running. A company cannot afford to let a system that houses crucial financials crash, but each year, the cost of maintaining the system grows. In one case, Singh found that a full quarter of the firm’s IT budget was allocated to maintaining legacy systems. In situations like this, the cost of outdated systems reduces the company’s ability to invest in technology infrastructure and future growth. How SAP FICO Makes a Difference Moving to an automated FICO solution solves these bottlenecks in several ways. First, it streamlines financial operations—especially accounts payable, accounts receivable, payroll, and financial reporting—so that a business can automate its invoicing, payments, and reconciliations. This reduces the cost of both time and human error. Second, the business realizes cost savings through the reduction of the number of tasks required and the amount of separate paperwork and approvals needed. Third, real-time preparation of more accurate reports provides the executive team with the business intelligence needed to act. This allows the company to manage cash flows, evaluate profitability, and optimize how it allocates its resources. It also allows for more strategic planning and forecasting. Fourth, sharing data seamlessly across departments makes meaningful collaboration both more possible and more likely. Fifth, an automated FICO solution improves compliance. Sixth, it supports seamless global operations, automating currency exchange, tax reporting in varied jurisdictions, and consolidation of financial statements from geographically dispersed subsidiary firms. The Need for Expertise Such situations leave companies in a catch-22. They increasingly need to upgrade their systems and move to an automated FICO solution, but they don’t necessarily know how to manage that integration and data migration effectively. Selecting the right architect can be crucial. Ideally, a company needs an SAP FICO or similar professional with extensive experience in general ledger reconciliation and resolving data conversion bottlenecks. Parveen Singh Hoshiar Singh, with experience in finance, treasury, and FP&A, has managed many such integrations over the years and has established himself as a leader in SAP finance automation. Processes for financial accounting and controlling become more complex and intricate each year. Long gone are the days of paper filing and manual paperwork, mainframe computing, and early ERP systems. Even today’s fully cloud-based ERP systems are barely sufficient to handle the needs of evolving business practices, competitive global markets, and new AI and blockchain technologies. That’s why experienced SAP FICO Architects like Parveen Singh Hoshiar Singh are now helping businesses move from legacy systems to SAP FICO to achieve new levels of efficiency in their financial processes. Parveen Singh Hoshiar Singh Parveen Singh Hoshiar Singh The Challenge of Integration SAP finance module integration is certainly not as simple as flipping a switch. With over twenty years of experience in SAP FICO, Parveen Singh has found that most major bottlenecks occur in general ledger reconciliations and data conversion, a topic he has written about extensively, including in this article . this article this article In two decades of helping companies automate their financial accounting and controlling processes, Singh has found that companies frequently see a high rate of financial reconciliation errors before migrating their data into an integrated SAP FICO system. This is especially the case for businesses still relying on a functional yet inefficient hodgepodge of obsolete manual systems and various software applications that do not communicate with each other. In one such case, Singh found that before data migration, 15% of the company’s total financial transactions contained reconciliation errors. Shockingly, different balances appeared in three places in the company’s records: the general ledger, accounts payable, and accounts receivable. “Most of these errors required considerable time to detect and rectify,” Singh notes, “while they undermined the credibility of the financial reports produced by the legacy system.” How FICO Bottlenecks Cost Companies How FICO Bottlenecks Cost Companies These inefficiencies meant that financial reports were not always delivered on time, and personnel hours were wasted adjusting the numbers for month-end close. Besides the cost of personnel hours and the delays in reporting, the high error rate meant that executives could not always be confident in the accuracy of their financial data. This led senior management to question whether they could make informed decisions. In a competitive and rapidly changing market, this lack of confidence can be a critical weakness. One additional hidden cost of an unintegrated system is the IT expenditure required to keep outdated legacy systems running. A company cannot afford to let a system that houses crucial financials crash, but each year, the cost of maintaining the system grows. In one case, Singh found that a full quarter of the firm’s IT budget was allocated to maintaining legacy systems. In situations like this, the cost of outdated systems reduces the company’s ability to invest in technology infrastructure and future growth. How SAP FICO Makes a Difference Moving to an automated FICO solution solves these bottlenecks in several ways. First, it streamlines financial operations—especially accounts payable, accounts receivable, payroll, and financial reporting—so that a business can automate its invoicing, payments, and reconciliations. This reduces the cost of both time and human error. Second, the business realizes cost savings through the reduction of the number of tasks required and the amount of separate paperwork and approvals needed. Third, real-time preparation of more accurate reports provides the executive team with the business intelligence needed to act. This allows the company to manage cash flows, evaluate profitability, and optimize how it allocates its resources. It also allows for more strategic planning and forecasting. Fourth, sharing data seamlessly across departments makes meaningful collaboration both more possible and more likely. Fifth, an automated FICO solution improves compliance. Sixth, it supports seamless global operations, automating currency exchange, tax reporting in varied jurisdictions, and consolidation of financial statements from geographically dispersed subsidiary firms. The Need for Expertise Such situations leave companies in a catch-22. They increasingly need to upgrade their systems and move to an automated FICO solution, but they don’t necessarily know how to manage that integration and data migration effectively. need how Selecting the right architect can be crucial. Ideally, a company needs an SAP FICO or similar professional with extensive experience in general ledger reconciliation and resolving data conversion bottlenecks. Parveen Singh Hoshiar Singh, with experience in finance, treasury, and FP&A, has managed many such integrations over the years and has established himself as a leader in SAP finance automation.

This story contains new, firsthand information uncovered by the writer.

droppGroup Is Laying the Rails for the New Internet & AI-driven economy 

Woxa Corporation Continues to Lead Innovation in Fintech and AI Algorithmic Trading

Too Long; Didn't Read

Boost your HackerNoon story @ $159.99! 🚀

From Legacy to SAP FICO: Parveen Singh Hoshiar Singh’s Process Automation

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

$INK: The Solana Memecoin with a Vision for Utility

Top 10 ERP and E-commerce Integration Providers in 2019

Intelligent Cloud Workflows for Financial Services with Real-Time Data Analytics

$DEFI Token Hits 7 Major Exchanges: A Milestone Achievement

$JTC Network To List On BitMart Exchange

$INK: The Solana Memecoin with a Vision for Utility

Top 10 ERP and E-commerce Integration Providers in 2019

Intelligent Cloud Workflows for Financial Services with Real-Time Data Analytics

$DEFI Token Hits 7 Major Exchanges: A Milestone Achievement

$JTC Network To List On BitMart Exchange

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps