Can the preparation of internal financial statements be automated?
Efficiency question :
Yes. Preparing internal or external financial statements is based essentially on the same logic. Chart-of-accounts data is grouped in order to present information as financial statements or results reports.
A mapping table can be used to associate different general ledger accounts with common categories. This method reduces the level of detail displayed and groups several accounts under the same financial heading.
Once this structure has been established, the preparation of internal financial statements can be automated to make periodic production easier.
Key considerations:
Before producing financial statements, make sure that all required data is available and that the period concerned is sufficiently complete.
It would be problematic to produce a month's financial statements before the end of the period or before all required transactions are available.
We therefore recommend automatically displaying the report creation date in the footer. This information shows precisely when the financial statements were generated and provides an additional control when they are reviewed.
Challenges:
The data required to prepare financial statements may come from several sources.
Power Query can retrieve this different data, while the M language can transform it and put it into a common format before use.
This step is particularly important when data comes from different systems. It often needs to be restructured or standardized before it can be grouped and used in automated report production.
The SLV Expert Services - Reports page also presents different examples of reports that can be prepared for an organization's internal needs.
Technology:
A good command of Power Query and its M language makes it possible to automate a significant part of the preparation of data required for internal financial statements.
Power Pivot can then be used to structure the data model and perform the calculations required for the reports.
These skills also allow users responsible for reports to become more autonomous and perform certain automations without systematically depending on an IT department.
Developer's advice:
Developing the skills required to prepare and automate data can help an organization become more autonomous in producing its financial reports.
SLV Expert's Power Query and Power Pivot for Controllers and Analysts course is a good starting point for learning how to retrieve, structure, and use data.
To deepen Power Query skills, the Power Query Level 2 course goes further into data preparation and transformation.
To deepen Power Pivot skills, the DAX Functions for Power Query and Power BI course develops the knowledge required to create more advanced calculations.
These courses progressively develop the autonomy needed to build, automate, and evolve internal financial reports according to the organization's needs.