3 Ways Financial Management Consultants Utilize Technology
Financial management consultants use technology in the energy industry to identify financial and operational efficiencies and provide potential cost-savings. Tasks such as financial due diligence are crucial for financial management consultants, but the underlying data required is normally housed in either a database or a software system. Understanding the technology to compile and manage that data allows financial management consultants to review and test the amounts being negotiated for the client.
For example, here are three ways financial management consultants leverage technology for downstream companies:
- Energy Trade and Risk Management (ETRM) Software: This front-to-back trading system captures the full life cycle of deals and uses that data in many different ways. Analyzing the profitability of commodity trades, logistical efficiencies, and timeliness of billings are a few areas where financial management consultants can provide value with ETRM Software.
- Financial Accounting Software: Many downstream companies utilize a separate accounting software package to capture the billings and payables interfaced from the ETRM system, track cash flows, reconcile general ledger accounts, and generate financial reporting. From a financial management perspective, there are a myriad of ways to analyze the data contained in these types of financial accounting systems and provide the information needed for a client to have better clarity into their business.
- Consolidation Software: Often a downstream company has more than one legal entity and may have multiple financial accounting packages that need to be consolidated in order to create management reporting at the parent company level. Financial management consultants can analyze the individual entity data and compare it against the consolidated reporting to validate that the system settings are working correctly.