The close process can be one of the most time-consuming processes in the business. Regardless of whether it’s easy to do or not, you have a responsibility to stand by the numbers, and ensuring accounts are reconciled accurately is always priority one. All at the time when companies are being asked to do more with less.
Falling into the traps of manual spreadsheets can be a tremendously time-consuming process, consuming days or even weeks of time. With the emergence of more sophisticated tax laws globally you’re likely to face further complexity hurdles involved with transfer pricing calculations alongside of the complicated financial disclosure process.
Stacking a disclosure management tool over a close and consolidation tool can offer significant benefits for you, especially in streamlining financial reporting processes and ensuring compliance with regulatory requirements. Here are some of the advantages:
1. Efficient Financial Reporting
A disclosure management tool can help automate and streamline the process of generating financial reports. By integrating with your close and consolidation tool, it can pull data directly from the financial consolidation system, reducing manual data entry errors and saving time in the reporting process.
2. Data Accuracy and Consistency
Stacking a disclosure management tool over your close and consolidation tool helps ensure data consistency throughout the financial reporting process. Data is extracted directly from the financial system, reducing the risk of errors that might occur when manually transferring information between systems.
3. Version Control and Audit Trail
Disclosure management tools often offer version control features, allowing you to manage different iterations of financial reports. This capability is essential for maintaining an audit trail, complying with regulatory requirements, and facilitating internal and external reviews.
4. Collaboration and Workflow Management
These tools often provide collaboration features that enable multiple team members to work together on financial reports simultaneously. You can assign specific tasks and track progress, improving coordination and efficiency during the reporting cycle.
5. Regulatory Compliance
For publicly traded companies, compliance with financial reporting regulations, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), is crucial. A disclosure management tool helps ensure that your financial reports adhere to these standards, reducing the risk of errors and potential penalties.
6. Narrative Reporting Capabilities
Disclosure management tools often allow for narrative reporting, where you can add textual explanations and context to the financial data presented. This feature is particularly valuable for explaining financial results, identifying trends, and providing insights to stakeholders.
7. Streamlined XBRL/iXBRL Reporting
Many regulatory bodies require companies to submit financial statements in XBRL (eXtensible Business Reporting Language) or iXBRL formats. A disclosure management tool can simplify the process of tagging financial data and generating XBRL/iXBRL files for submission.
8. Increased Efficiency and Time Savings
By automating repetitive tasks and reducing manual interventions, you can allocate your time to more value-added activities, such as data analysis and strategic decision-making.
9. Centralized Data Repository
Integrating a disclosure management tool with your close and consolidation tool allows for a centralized repository of financial data and documents. This centralization makes it easier to locate and retrieve information, especially during audits or when addressing inquiries from stakeholders.
Using a disclosure management tool with a close and consolidation tool can enhance your financial reporting processes. This synergy between the tools leads to improved accuracy, adherence to regulatory requirements, and increased efficiency for finance professionals. The overall financial reporting environment becomes more robust and streamlined, benefiting both the finance team and the entire organization.
Certent Disclosure Management (CDM) from insightsoftware will boost your regulatory filings and disclosure management processes. By using CDM and Longview Close in tandem, you’ll be able to streamline your financial reporting and consolidation. So, you’ll have confidence in your high-frequency, recurring, multi-author internal, external, and regulatory reports. By doing so, you benefit from a better close.
Discover how Certent Disclosure Management and Longview Close can help you streamline and simplify the last mile of financial reporting, empowering your team to work more efficiently. Ask for a free demo.