You bring a scattered financial administration back in line by making one system the core. Every other application is then either connected to it deliberately or phased out. The work starts with a list of every application, interface and spreadsheet your financial data passes through.
One of our customers worked with such a tangle for years. Over time it had bought all sorts of applications, some of them poorly integrated. Transactions had to be collected from everywhere and sometimes contained errors, so the accounts had fallen out of step. Eqeep guided the customer through the move to a single integrated financial system.
Do you recognise the tangle in your own finance systems?
Signs that your finance systems have fallen out of step:
- The same invoice or entry is keyed into two systems.
- Month end is spent reconciling sub-ledgers with the general ledger.
- An interface has run for years, but nobody knows exactly what it does or who looks after it.
- Every application has an owner, but nobody sees the whole picture.
Where data goes wrong between departments, and who owns a process, is covered in our article on inefficient processes.
What changed for our customer?
The new integrated financial system was IFS. Where the customer used to juggle separate Excel files, all applications and transactions now come together. The fragmented processes merged into one clear process too.
The team now only needs IFS knowledge to keep the accounts running. The move was also a step from local to central data storage in the cloud. Employees can now log in at any time, from any location.
With IFS, the customer handles routine tasks and transactions faster and more accurately. Every item is entered once, in one system and in one way, which greatly reduces the chance of errors. New employees learn one system with one work instruction, so onboarding became easier. That brought more simplicity and lower costs.
The customer gained better insight into budgeting, and more time to look at it. Trends became easier to spot and cash flow improved. Approvals once spread across applications now run through one system.
That improved communication and collaboration within the company. Security also became easier, with one central application for user management and access rights.
What comes next for this customer
Steve Alink, Solution Architect at Eqeep, in 2024: “For this customer, we significantly improved their financial administration, but we didn’t stop there. We are constantly working on making financial processes smarter and we always include our customers in that. For example, AI solutions are currently a hot topic within IFS. We expect to deliver more and more value with this, so that our customers not only have a smart system, but also stay ahead in their industry.”
Which finance tasks suit AI is covered in our article on AI in finance.
How do you map your finance applications and interfaces?
With one list of every application and every data flow, including the flows that run through Excel or email. Re-keying figures from one system into another is an interface too, just one without a control. For each application, record:
- which financial data it creates, receives or passes on, and to which system;
- how: by file, API, Excel export or re-keying;
- how often, and who checks that everything arrived;
- who owns it, who maintains it and when the contract ends;
- which data matters for tax and how long you must keep it.
That last column has a second use. An inventory of every system holding tax-relevant data also helps if you want to agree your record-keeping obligations with the Dutch tax authority (Belastingdienst). For each system, you explain how you meet the obligation.
Connect or replace: how do you decide for each application?
Replace what the core already does as standard, especially where there is double entry or an application’s knowledge sits with one person. Connect a specialist process the core does not cover, or a group ledger that stays elsewhere. Choose the core first: the system where the general ledger, receivables, payables and approvals come together.
Then your list helps. The contract end date sets when you replace. Who checks that everything arrived decides whether an interface is acceptable. If nobody knows, connecting is not a safe choice.
At Flamingo Flowers, Eqeep built an application programming interface (API) between IFS Applications and the flower trading system. The published story describes less manual handling and lower logistics costs. Read the Flamingo Flowers story.
IFS describes IFS Connect as the integration broker that links IFS to other applications. Entries from another system come in through the external vouchers interface, where IFS checks them against the accounting rules. Lines with errors only become vouchers once someone has corrected them. So agree who picks up those lines.
It also works the other way round, when your group’s general ledger stays in another ERP system. With the IFS Financial Connector, IFS sends vouchers to that ledger, and supplier and customer invoices to its payables and receivables. Suppliers, customers, currency rates, accounts and code parts are then maintained in that other system, which feeds them to IFS.
Your team decides the system boundaries and who owns which data. Eqeep works out with you which processes move into IFS.
How much history should you take into the new system?
Only what your team needs in the new system. Keeping the rest auditable is a separate decision. In the Netherlands, the tax retention period is normally seven years, according to the Belastingdienst. The clock only starts when a record loses its current value, so for a five-year lease it starts after those five years.
If you keep records digitally, the Belastingdienst must be able to use your programs and files during an audit. When you switch off an old application, you may convert the data to another form. You may do so only if you transfer all data correctly and the new medium stays available for the whole retention period. An audit must also be possible within a reasonable time.
Keeping only an audit file is never enough, according to the Belastingdienst. The earlier state of master data, such as old prices and customer addresses, must also remain traceable.
In Belgium, the Code of Economic Law requires companies to keep their books for seven years, from 1 January of the year after the close. For income tax and VAT, ten years has applied since the law of 20 November 2022. According to the Belgian Accounting Standards Commission (CBN), the old accounting application need not be kept, as long as the books stay unaltered and readable. For electronic invoices, FPS Finance strongly recommends keeping the original XML format, because converting it makes the burden of proof heavier.
For data that does move, IFS provides Data Migration Manager. It imports legacy data, cleanses and validates it, flags potential duplicates and records what was deployed and when. You decide with your controller and auditor how many years of detail go into IFS and how you archive the rest.
In what order should you tackle it?
Overview and core first, then interfaces and migration.
- Build the list of applications, data flows and retention obligations.
- Choose the core and settle the chart of accounts and dimensions. How that choice shapes your reporting is covered in our article on financial reporting.
- Decide for each application whether to replace, connect or phase it out, with an end date for systems that temporarily run side by side.
- Agree the archive for the old systems with your auditor before you switch anything off.
- Migrate and test in rounds; our article on IFS Cloud cost drivers explains what they involve.
With only a few applications and simple accounts, a well-controlled interface can cost less than a new core system. That is why we first look at your list and your available capacity. Start with an analysis.
Questions about untangling your finance systems
How long must you keep your financial records?
In the Netherlands, seven years as a rule, and ten years for data on real estate. In Belgium, companies keep their books for seven years under the Code of Economic Law. For income tax and VAT, ten years has applied there since the law of 20 November 2022. Ask your tax adviser whether longer periods apply.
Do you have to keep the old system running after the switch?
No, provided you convert the data completely and correctly and it stays readable and auditable for the whole retention period. In the Netherlands, keeping only an audit file is not enough.
Can IFS Cloud run alongside another finance package?
Yes, with clear responsibilities and data flows. IFS Connect links IFS to other applications. With the IFS Financial Connector, IFS sends vouchers to another ERP system’s general ledger. Your team decides the system boundaries.
What could one core system mean for your finance team?
Tell us where you stand with IFS. After one conversation you will have a clear next step. Bring your list of applications and interfaces. Discuss your IFS question.
