An online product for the creation of financial statements by microfinance institutions (MFIs) has been launched by Sheer Intelligence, an American technology consulting and software firm.  The tool should help address concerns of transparency and consistency of reporting by MFIs, as corporate governance is oft-cited as a risk by industry observers.

SIMFLEX – so named for its advertised ability to facilitate “simple, flexible reporting” – is designed to generate financial statements that are clear and easy for investors to understand. Statements could be created for any fiscal period and in any currency, and validation rules and procedures for statements and amendments are built in to enable compliance with international standards. Computation of key performance indicators and integrated data analysis and aggregation tools are included.  A SIMFLEX statement would consist of an income statement, balance sheet, portfolio report, and non-financial data.

To ensure speed, security, and recoverability, the tool is built on the Force.com platform of Salesforce.com, a major vendor of CRM (customer relationship management) solutions. It is currently available in English, with other language options expected soon, and can be licensed for USD 50 per year.

Sheer Intelligence is based in Maryland and was founded by Vivien Ashworth. Ashworth was most recently the IT Manager for the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.

By Stephen Son

Additional Resources:

Microfinance Gateway: “MFIs Get Online Tool for Reporting & Measuring Performance”; “Sheer Intelligence Releases New Tool for Microfinance Industry”

MicroCapital.org article, March 7, 2008: “PAPER WRAP-UP: Microfinance Banana Skins 2008: Risk in a Booming Industry, by the Centre for the Study of Financial Innovation (CSFI)”

Sheer Intelligence: SIMFLEX

Salesforce.com AppExchange: SIMFLEX