Importance of SAP FICO Consultant in Finance Industry

SAP is a financial accounting module that is designed to display a company’s business transactions in a way that meets external reporting needs. The system has the ability to monitor and report on different companies around the world with different currencies. The software helps in merging distribution, sales, material management and procurement and helps the user to get to the original transaction, be it a purchase or sales order or movement of materials. One of the biggest advantages of SAP is system integration. The countless contributions of this software have boosted the career prospects of a SAP FICO consultant.

Join the SAP FICO course of the Entri App! Join Now!

What is SAP FICO?

SAP FICO is a functional component of SAP ERP that is used in many large companies to create and manage financial statements. It is used for reporting, but also for analysis for decision-making.

we are talking about two modules: SAP FI (Financial Accounting) for the Finance part and SAP CO (Controlling) for the Management control part:

• The SAP FI module allows companies to generate financial statements such as balance sheets or profit and loss statements. It consists of secondary modules dedicated to specific accounting processes: Customer Accounting (FI-AR), Fixed Asset Accounting (FI-AA), General Ledger (FI-GL)…
• The SAP CO module manages the planning, reporting and supervision of operating costs. The determining module for improving the profitability of the company also consists of secondary modules: Cost control by product (SAP CO-PC), Accounting (SAP CO-OM-CEL), Profitability analysis (SAP CO-PA )…

As a result, a SAP FICO consultant is an expert in these specific modules. Before installing the software, their primary role is to analyze and define the company’s needs. They may then have an advisory or support role.

Importance of SAP FICO in the Finance Industry

Nowadays, organizations have to deal with a lot of complexity that arises in the business process. This has increased the need for software that can help them run their business smoothly and quickly. The right software not only helps you run your business now, but also allows you to keep an eye on the future. SAP FICO is one such software that provides organizations with well-structured and effective financial and control mechanisms. These mechanisms cover almost every aspect of business operations to achieve large-scale and deep changes with benefits.

Another advantage of the SAP FICO module is that it can be easily integrated with sales, distribution, material management and so on. Problems and areas such as payables, receivables, bank accounts, general and other ledgers, cost and profit centers and management of various financial assets can be addressed when this software is used properly.

Due to all these factors, organizations have started implementing this module in their business and are constantly looking for experienced professionals who can work with this software. In order to work with this software, it is important that an individual:

• Understand how SAP Financial Accounting works
• Learn how the finance module integrates with various SAP modules
• Master the basic concepts of SAP financial accounting
• Understand the importance of the general ledger and learn about its functions
• Learn some basic concepts of SAP FICO module like sub ledgers, accounts receivable/payable, asset accounting

What does an SAP FICO Consultant

First, a SAP FICO consultant is a professional who specializes in implementing and maintaining SAP FICO systems. They are responsible for analyzing the company’s financial requirements and designing and configuring a SAP FICO system that meets those needs. In addition, SAP FICO consultants provide ongoing support and maintenance to ensure that the system runs efficiently and effectively.

Roles and Responsibilities of an SAP FICO Consultant

Aspiring professionals looking for a career move towards SAP are curious about SAP FICO Functional Consultant role. And many of them, even if they have sufficient functional experience, still have the urge to understand their role after SAP training and career shift to SAP.

The actual role of SAP FICO Functional Consultants will vary depending on the type of project they are employed on. The assigned project can be SAP Upgrade, Implementation, Rollout, SAP Support (after implementation) and others. Below are the key roles and responsibilities of a SAP FICO consultant in an enterprise:

• They are known as “Business Experts” because they design SAP implementation solutions based on your company’s requirements.
• They generally use acquired process knowledge to assess the impact of SAP implementation on company processes.
• They even interact with customers and gather requirements based on customization of SAP implementations.
• SAP FICO technical consultants play a key role in migrating data from a legacy system to a new SAP ERP implementation.
• Simplify support and implementation of SAP Financials (focus on Profitability Analysis, Profit Center Accounting, Product Costing, FICO Cost Center Controlling, etc.)
• Perform comprehensive requirements analysis for complex business processes and provide appropriate system solutions
• Conduct workshops to obtain business requirements
• Connect client Business requirements, processes and goals
• Act as a liaison with the client to troubleshoot, investigate, analyze and resolve software issues
• Provide effective consulting services regarding new implementations as well as existing support projects

SAP FICO is the highest paying SAP module, has very good growth and many companies are looking for SAP FICO certified consultants. But it is not so easy to get job in SAP FICO, competition for SAP FICO is too high so you should be very good in technical field.

Why your company needs an SAP FICO Consultant

There are several reasons why it is important for a company to have a SAP FICO consultant. One of the main reasons is that they can help a company optimize its financial processes. By understanding a company’s financial requirements, a SAP FICO consultant can design and configure a SAP FICO system that automates and simplifies financial processes such as accounts payable and receivable. This can save a company time and money and free up resources to focus on other important business activities.

Another reason why a SAP FICO consultant is important is that they can help a company better understand its financial data. By analyzing and interpreting financial data, a SAP FICO consultant can provide insights and recommendations that can help companies make more informed business decisions. This can help the company improve its financial performance and achieve its business goals.

In addition, a SAP FICO consultant can help a company ensure compliance with regulatory requirements. They can also ensure that financial transactions are recorded accurately and in accordance with local and international accounting standards. This can help the company avoid penalties and legal issues that may arise from non-compliance.

What does SAP FICO Consultant do?

The certification teaches the use of SAP modules, but every scenario is different and every industry has its challenges. SAP Finance and Controlling deals with facts and figures to provide a clear numerical picture of your organization. A SAP FICO consultant is responsible and capable of managing an organization’s financial accounting.

The consultant is involved in the following:

1. Strategic Planning: Plan the strategy and integrate solutions.
2. Operational Involvement: Information gathering and processing and functional design development.
3. Implementation: Implement financial processes and implement review whenever required.
4. Trouble Shooting: Troubleshooting, escalating and providing solutions.
5. Parallel Currency Accounting: Companies based in countries outside India must maintain accounts in both INR and a foreign currency such as USD $ or Euro £.
6. Documentation: Information related to the project as received from the client and updated after discussion. End user training documentation.
7. MIS Reports: As required by internal or external customers for financial planning, budgeting and forecasting.

Why Your Company Needs an SAP FICO Consultant: 5 Key Benefits

Here are 5 key benefits of hiring a SAP FICO consultant for your company to streamline financial processes and understand your financial data.

In today’s complex business world, effective management of financial resources is critical to the success of any company. However, implementing and maintaining a SAP FICO system requires specialized knowledge and expertise that most companies do not have. This is where a SAP FICO consultant can be an invaluable asset.

1 Improved Financial Management

A SAP FICO consultant can help your organization improve financial management processes. They can implement SAP FICO modules that automate financial transactions, saving time and reducing errors. In addition, SAP FICO consultants can help you create financial reports that provide insight into your company’s financial performance and help you make informed decisions.

2 Cost Savings

Implementing SAP FICO modules can help your organization save money in several ways. First, it can automate financial processes, reducing the need for manual work. Second, it can reduce financial reporting errors that can lead to costly penalties or fines. Last but not least, it can help you identify areas where you can cut costs and optimize your financial operations.

3 Compliance

Compliance with financial regulations is essential for any organization. Non-compliance can result in heavy penalties and reputational damage. SAP FICO consultants can help ensure your organization complies with financial regulations such as GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards).

4 Scalability

As your organization grows, your financial management requirements will become more complex. SAP FICO modules are designed to be scalable, meaning they can grow with your organization. A SAP FICO consultant can help you implement SAP FICO modules that can scale as your organization grows, helping you manage your financial operations more efficiently.

5 Expertise

Implementing and maintaining SAP FICO modules requires specialized expertise. SAP FICO consultants are trained and certified in the implementation and maintenance of SAP FICO modules. They have the expertise to help you get the most out of your SAP FICO modules that can help your organization achieve its financial management goals.

SAP FICO consultant is a profitable role

Now SAP FICO has become an important segment to get job with excellent salary package. Most of the candidates are looking for SAP FICO career. So, to become a SAP FICO consultant, candidates need to get SAP FICO training. This training will help them get more job opportunities in that particular field. To get SAP FICO certification it is necessary to know the eligibility criteria, well there is no such specialized criteria to undergo this training but at least two years of domain knowledge is required. On the other hand, having working experience with SAP would be an added advantage. With all these benefits, it is easy to become a SAP consultant.

With increasing competition from other industries, most organizations are now combining their business operations with SAP. With the help of SAP, various business organizations can make important financial decisions and can use the available resources to maximize the productivity of their business. If a candidate takes SAP FICO training from a reputed SAP training institute, their career path will be more accessible. SAP FICO is a profitable role and a career in SAP FICO has several advantages. Let’s explore some of the benefits:

1. The SAP FICO module can be utilized in the Finance department of any organization.

2 . Finance department is the key department of any organization because most of the important decisions are taken only in this department.

3. Accounting records are vital and should be efficient, timely and accurate.

4. Important people in organizations reside in the finance department and are responsible for carrying out the financial task.

5. A SAP consultant may get a chance to work with key people in an organization.

6. Requirement of experienced SAP FICO consultant is higher in industries than other SAP modules.

A SAP FICO consultant plays a key role in configuring and implementing the SAP FICO module for organizations. They need to work closely with finance and accounting teams to understand the business processes, design the module and configure it to meet the specific requirements of the organization. They are also responsible for the ongoing maintenance, support, customization and integration of the SAP FICO module. By fulfilling their roles and responsibilities, SAP FICO Consultant Responsibilities can help organizations effectively manage their financial transactions and operations.

Join to learn SAP FICO from the Experts! Click for the demo class!

Required skills of the SAP FICO Consultant

How to become a SAP FICO consultant? Here is a list of skills needed to succeed in this career.

Technical expertise

For an expert, mastering the SAP FICO modules is of course essential. The consultant must have very good technical knowledge in order to be able to fully meet the client’s needs and develop appropriate functionalities. But also to verify and document project requirements.

Knowledge of accounting, corporate finance & management control

First, business knowledge is essential for a FICO consultant: they must master and understand end-user problems as well as related business processes in order to set up appropriate workflows in the information system.

A good analytical mind

Soft skills are also essential, a SAP FICO consultant must be able to better analyze a company’s processes and business lines, determine whether the necessary functionalities fall within the standard use of SAP FICO or require in-house development. He also often acts as a liaison between the technical teams and the stores.

Listening skills and pedagogy

In order to better understand the company’s needs, a SAP FICO consultant must have good interpersonal skills and must always remain attentive to their clients and future users to assess their needs. Similarly, once the solution is implemented, the consultant will need to provide training for future users: being a good communicator and teacher is therefore very useful.

Career Evolution of SAP FICO Consultant

Career development is not just a change in designation and salary. It covers the rights and responsibilities that build your reputation as a financial expert. Career planning is like planting a seed, it takes time to grow, but luckily you have the means to shape your career.

Start learning the technology and stay updated. Have the knowledge used and tested in a variety of finance and control roles. Concepts allow you to remain aware, but using them improves alertness. “Some concepts are so incredibly risky that it takes an honest fool to try to formulate them.” – Criss Jami. Fortunately, FICO is neither a concept nor risky for your career.

After completing the course, there are various job positions available for you to apply for as per your choice and strengths. SAP finance allows you to work as Accounts Payable Associate, Project Accountant, Junior SAP Consultant, Financial Analyst, Financial Manager, Financial Controller and more…  An entry level consultant at entry level to mid level has a package of 3.5 to 7 Lakh , while a senior a SAP consultant (FICO) can pack a package of 12 Lakh.

Let us discuss what you will be able to offer as a SAP Finance Consultant and what the scope is.

Specialized/Skilled Activities

• Financial Planning and Analysis
• Independently lead the module
• Handle FICO issues faced by the team
• Automatic Payments
• Automatic Bank Reconciliation
• Accounting and Financial Closure
• Problem Diagnosis
• Processing information in real-time
• Process Integration
• Analyze Solutions and its impact on business processes
• Identify risks and plan for risk mitigation
• Change Management Requirements
• Value-Added Solutions
• Business Documentation of financial requirements
• Incident management and problem-solving
• Provide constructive feedback to the team members
• Knowledge of Cross Module Integration
• Gap Identification, Gap Analysis, and Continuous Improvement
• Introduction and Implementation of Accounting Best Practices
• Quality Assurance and Customer Satisfaction
• Indian and International Accounting & Taxation

Basic Activities

• Asset Accounting
• Product Costing
• General Ledger
• Accounts Receivable/Payable
• Profit/Cost Center Accounting
• Overheads Assessment
• Profitability Analysis
• Developing FICO Reports
• Demand and Forecasts
• Product-wise/ Region-wise Profitability Reports
• Support for Auditing and Liaison work

Salary of the SAP FICO Consultant

How Much Does a SAP FICO Consultant Make?

SAP FICO consultant salary can also vary depending on several factors such as location, years of experience, industry and company size. According to Payscale, the average salary for a SAP FICO consultant in Europe is around €61,000 per year, with a range typically between €40,000 and €89,000 per year.

While, according to various websites, the average salary of a SAP FICO consultant in the United States is around $97,000 per year, with the range usually ranging between $75,000 to $120,000 per year.

However, the actual salary may vary depending on the country and the specific location within the country.

Join to learn SAP FICO from the Experts!

SAP FICO consultant Work Environment

SAP FICO consultants are typically employed by large organizations and work in teams of consultants. They may travel to different parts of the country or the world to work on projects at client sites. Work is often project-based, so consultants may work long hours to meet deadlines. The work can be stressful as consultants must be able to handle multiple projects and meet client expectations.

SAP FICO consultant Trends

Here are three trends affecting how SAP FICO consultants work. SAP FICO consultants will need to stay current with these developments to keep their skills relevant and maintain a competitive edge in the workplace.

• The Need for More Technical Skills

As businesses become more reliant on technology, the need for technical skills increases. This is especially true for roles in finance where SAP FICO consultants are needed to help with data management and analysis.

To be successful in this field, professionals will need to be able to not only understand the technical aspects of SAP FICO, but also how to use it to solve business problems. They will also need to be able to communicate effectively with other team members as well as clients.

• The Emergence of Cloud-Based Solutions

Cloud solutions are becoming increasingly popular among businesses due to their many advantages, such as reduced costs and increased flexibility. As a result, SAP FICO consultants will need to learn how to use these solutions to remain competitive.

By learning how to use cloud-based solutions, SAP FICO consultants can provide their clients with the latest tools and technologies that can help them run their businesses more efficiently. In addition, they can also develop expertise in areas such as data security and compliance, which are increasingly important to businesses.

• More Focus on Data Analytics

Data analytics is an emerging trend that is rapidly gaining popularity among businesses. This trend is driven by the growing demand for data-driven decision-making, which enables companies to make better decisions based on real data rather than assumptions or feelings.

As data analysis becomes more important, SAP FICO consultants will need to develop strong analytical skills and a deep understanding of data management. This will enable them to help businesses make better decisions based on accurate and reliable data.

How to Become a SAP FICO Consultant

A successful career as a SAP FICO consultant requires a combination of hard and soft skills. You must be able to understand complex financial models, have strong analytical skills and be able to communicate effectively with both technical and non-technical audiences.

You must also be able to work in a team environment and tolerate change. Since the financial industry is constantly evolving, you need to be able to keep up with the latest trends and developments.

Advancement Prospects

SAP FICO consultants can advance their careers by taking on more responsibility within their current organization or starting their own consulting business. As consultants gain more experience, they can charge more for their services and take on more complex projects. In addition, consultants who can build a good reputation can attract new clients and grow their business.

Click to join the best SAP FICO course 2024! Click here to register!

FAQs