ISG Research is happy to share insights gleaned from our latest Buyers Guide, an assessment of how well software providers’ offerings meet buyers’ requirements. The Financial Consolidation: ISG Research Buyers Guide is the distillation of a year of market and product research by ISG Research.
The financial records of an enterprise must be reviewed periodically and summarized to create financial statements that inform executives and
This guide examines software that focuses solely on managing the financial consolidation process, programs that assist in managing the accounting close processes and packages that combine the functionality of both.
ISG Research defines consolidation software as an application that manages the financial consolidation process in conformance with accounting standards for enterprises with complex requirements. All accounting or ERP systems will perform a statutory consolidation of the accounts handled in that system using the generally accepted accounting principles of the parent company. But this approach is inadequate for enterprises that, for example, use accounting systems from multiple providers or other complicating factors that necessitate a separate system. We define close-management software as applications that support the timely and efficient completion of close-cycle tasks, especially automating reconciliations and performing process management functions.
Financial consolidation systems became a software category in the mid-1980s with the appearance of the first applications that could run on personal computers. They gained popularity because accounting professionals could operate them independently of the IT department. Over the next two decades, the software became more sophisticated, gaining features and functionality. In the Teens, the applications migrated to the cloud. Since lockdowns disrupted departments in 2020, and facing a shortage of accountants, executives focused on using technology to enhance the productivity (not just the efficiency) of their staff. In particular, they are sourcing systems to manage financial consolidation, transform easily automated processes and streamline processes with workflows.
Consolidation is necessary when an enterprise has multiple legal entities, subsidiaries, joint ventures or other forms of ownership or control of operating units. The financial consolidation process involves eliminating intercompany transactions and balances to provide a comprehensive and accurate view of the organization’s financial condition and performance. The consolidation process and its rigorous methods are prescribed by financial accounting authorities and can be quite complex.
Consolidation is only part of the financial or accounting close, which is the process of finalizing an enterprise's financial statements at the end of an accounting period, such as a month, quarter or year. During the financial close, all financial transactions are reconciled, reviewed and adjusted as needed to prepare the financial statements. These include the balance sheet, income statement, cash flow statement and the statement of shareholders’ equity. This process is essential for ensuring the accuracy and completeness of financial reporting, and it is often a critical step in meeting regulatory requirements and providing stakeholders with a clear picture of the company's financial performance.
In all but the smallest enterprises, consolidation and close processes require coordination and collaboration. Software assists in ensuring that steps in the process are completed correctly: Direct communications reinforce collaboration, participants easily access documents and notations and reminders keep necessary reviews and sign-offs on track. Those managing the process can easily monitor progress and provide alerts when issues arise.
Consolidation and close-management software has improved, incorporating real-time integration with source systems. This is important because of the myriad last-minute adjustments and corrections that happen during the consolidation process. Systems now offer more effective collaboration features to smooth the process and ensure resiliency, including secure data sharing and centralized document storage for working papers and supporting evidence. For enterprises with especially complex structures and reporting requirements, the ability to consolidate using multiple accounting standards at different levels and branches of the corporate hierarchy can be useful.
Another factor driving the adoption of dedicated software is the desire to shorten the accounting close. The accounting or financial close is the process of finalizing a company's financial statements at the end of an
There has been agreement that organizations should complete the accounting close within a business week. Workflow automation is especially useful in handling the close-consolidate-report cycle, specifically to manage the process in a hybrid working environment and for organizations that span the globe. As with any workflow-enabled process, administrators spend far less time ensuring individuals have started or completed their tasks, hand-offs are smoother and, where reviews and approvals are required, these events are recorded and easily accessed by external and internal auditors and support assertions by executives that internal controls and procedures have been followed.
Workflow-enabled systems also contribute to a smoother close because consolidating and closing the books should be almost exactly the same from one period to the next, including processes for handling exceptions and unexpected events and managing the close calendar. With workflow, the controller and chief accounting officer can spend less time on administration while having greater situational awareness and control.
Today’s technology can help finance and accounting executives make their departments more productive in ways that improve the working environment and make it possible for them to attract and retain the best talent in a resource-constrained market. Advances provided by artificial intelligence (AI) and even generative AI (GenAI) will likely make dedicated consolidation and close software an even more compelling choice, especially in a time of growing complexity in accounting standards and tax laws. While accounting relies on doing the same things consistently, how they are done is constantly evolving because of legal and regulatory changes, as well as the evolution of accounting principles. A continuous improvement mindset enables the adaptability and resilience necessary to remain productive. Software designed to assist in managing the accounting close is an essential tool for financial executives.
The capability frameworks for the Close Management Buyers Guides encompass comprehensive methods for managing the critical components of financial close operations. These frameworks address the management of reconciliations, ensuring accurate account balancing and discrepancy resolution throughout the close cycle. Process and administration capabilities provide structured workflows and administrative oversight to maintain efficiency and control. Journal management functionality supports the accurate recording and processing of financial transactions, while analysis and reporting features enable comprehensive financial insights and stakeholder communication. Collaboration, compliance and auditing components facilitate seamless coordination among team members and ensure adherence to regulatory requirements and internal controls. Additionally, the frameworks incorporate the application of natural language processing, AI, and GenAI technologies to enhance process automation, accuracy and decision-making capabilities across all close management activities.
The ISG Buyers Guide™ for Financial Consolidation 2025 evaluates software providers and products that includes consolidation process management, consolidation, intercompany management, journals and optionally, support for auditing and AI/GenAI capabilities. These are the essential functions for financial consolidation for guiding and managing the processes in an enterprise.
This research evaluates the following software providers offering products to address key elements of financial consolidation as we define it: Anaplan, BlackLine, Board, HighRadius, IBM, Infor, insightsoftware, insightsoftware IDL, Jedox, Lucanet, OneStream, Oracle, Planful, Prophix, SAP, Talentia Software, Vena Solutions, Wolters Kluwer and Workday.
This research-based index evaluates the full business and information technology value of financial consolidation software offerings. We encourage you to learn more about our Buyers Guide and its effectiveness as a provider selection and RFI/RFP tool.
We urge organizations to do a thorough job of evaluating financial consolidation offerings in this Buyers Guide as both the results of our in-depth analysis of these software providers and as an evaluation methodology. The Buyers Guide can be used to evaluate existing suppliers, plus provides evaluation criteria for new projects. Using it can shorten the cycle time for an RFP and the definition of an RFI.
The Buyers Guide for Financial Consolidation in 2025 finds OneStream first on the list, followed by Oracle and Board.
Software providers that rated in the top three of any category ﹘ including the product and customer experience dimensions ﹘ earn the designation of Leader.
The Leaders in Product Experience are:
The Leaders in Customer Experience are:
The Leaders across any of the seven categories are:
The overall performance chart provides a visual representation of how providers rate across product and customer experience. Software providers with products scoring higher in a weighted rating of the five product experience categories place farther to the right. The combination of ratings for the two customer experience categories determines their placement on the vertical axis. As a result, providers that place closer to the upper-right are “exemplary” and rated higher than those closer to the lower-left and identified as providers of “merit.” Software providers that excelled at customer experience over product experience have an “assurance” rating, and those excelling instead in product experience have an “innovative” rating.
Note that close provider scores should not be taken to imply that the packages evaluated are functionally identical or equally well-suited for use by every enterprise or process. Although there is a high degree of commonality in how organizations handle financial consolidation, there are many idiosyncrasies and differences that can make one provider’s offering a better fit than another.
ISG Research has made every effort to encompass in this Buyers Guide the overall product and customer experience from our financial consolidation blueprint, which we believe reflects what a well-crafted RFP should contain. Even so, there may be additional areas that affect which software provider and products best fit an enterprise’s particular requirements. Therefore, while this research is complete as it stands, utilizing it in your own organizational context is critical to ensure that products deliver the highest level of support for your projects.
You can find more details on our community as well as on our expertise in the research for this Buyers Guide.