Aspect’s CTRM Software Makes End of Year Reporting Easy for Commodity Traders
Written by the Aspect Enterprise Solutions Product Management Team.
Did You Know…that AspectCTRM makes close of day and close of year reporting simple? Closing out the books at the end of the year is imperative to the success of your business and ensures that you start the new year with a financial clean slate.
Reports Run In Real Time, Like Your Business
Unfortunately, many companies get overwhelmed and make costly reporting errors. Manual data entry mistakes and bad source data can be found too late, causing an avalanche of problems. With AspectCTRM, trading firms can easily keep track of finances throughout the year. Unlike other CTRM software, traders aren’t forced to turn back to spreadsheets while books are being closed and accurate reports are created within seconds due to Aspect’s in-memory database. Traditional book closing wastes hours or even days of valuable time.
AspectCTRM stands out from other commodity trade risk management software because it is the only system that continuously updates P&L after each deal is captured, ensuring your reports are reliable and contain the most up to date information. Other systems create reports using outdated P&L, which leaves traders making decisions without accurate data. AspectCTRM is also the only CTRM software that provides real-time exposure and live market prices & news so traders are confident they are always making smart, informed deals.
Setting Up Financial Periods
Specific financial periods are determined by the client, and are chosen in accordance with the company’s financial year. Once the time frame is selected, all deals, trades, and costs entered into the system can be added to the relevant financial period.
Closed Book Reporting and P&L
Aspect Enterprise Solutions provides CTRM clients with standardized tools to close books. You can track:
- Daily Profit & Loss: Know your current P&L so you can monitor swings in market prices, make smarter trades, and adjust hedges accordingly.
- Month-to-Date Profit & Loss: Analyze monthly P&L so you can recognize industry trends and monitor company performance.
- Historical Profit & Loss: Go back to any day and examine P&L at that time so you can see how your business was impacted by historical events.
- Yearly Profit & Loss: Compare your P&L results from previous years to the current year.
Close of Day Reports
Typically, close of day reports are created at the end of every business day for each Book against the current financial period. If Books are closed on the beginning of the following business day, users can modify reports by using the Custom Periods feature which allows you to correctly reflect which day deals should be recorded for. Daily snapshots are stored in the database that contain information on the deals captured, P&L and other attributes.
You can retrieve snapshots from any day by using the historical data mode in the reports tool. If a snapshot does not exist for the day you are looking for because the books were not closed, AspectCTRM uses the last available snapshot to generate figures.
Close of Year Reports
Yearly snapshots are created once every financial period per Book. Year to date reports allow you to compare the difference between live P&L and the P&L captured during the previous close of year report. If you have never run a close of year process, your current year to date will equal live P&L.
Close of year reports should be run on the last day of the financial year. If the books must be closed at a later date, the Custom Periods tool can be used to modify which day the CTRM software uses as the first day of the year.