Balance Sheet, Cash Flow, and Income Statements can be viewed in real time as new data comes into the system

Description

In this requirement we expect the three financial statements to be automatically updated the instant a user adds data to the system, such as a department owner adding expenses. Once data is entered, there is no delayed aggregation process. Statements will immediately reflect the changes.

Example Use Case

Scenario: A national retail chain uses CPM software to manage their forecasts. Executives regularly review financial statements to get an up to date understanding of the business's health. Their Excel process means significant delays when importing fresh sales data.

Solution: They purchase a CPM system automate the forecasting process. As the sales team updates their forecast each week, all three financial statements are automatically updated with fresh forward-looking information. This allows them to make faster, more informed decisions.

Considerations

Older OLAP-based tools will struggle with this requirement as they require a refresh whenever new data is introduced. Sometimes that is acceptable, as real-time information is meaningless if it is not accurate or complete. If this is an absolute necessity for you, ask the vendor how their product is designed.

Some systems will have this as an option - refresh on demand or not. There are downsides to constant refreshes, particularly slowdowns and potentially ejecting users from the system.

Questions to Ask a Vendor

• Real-Time Capabilities: How does your system provide real-time updates of financial statements as new data is introduced?
• Timing: If it does not offer real-time updates, how long does it take to update after someone enters in new information?