Financial reporting still involves pulling data manually out of an ERP/EPM system into Excel, then manipulating the data to create custom reports – a slow and error-prone process. insightsoftware’s Craig Nickerson outlines a better alternative.
A big part of financial reporting for businesses and organizations is related to regulatory compliance. This can vary widely depending on the organization and industry, such as the Consolidated Annual Financial Reports (CAFR) for a state, municipality or other government entity; FR 2900, FR Y-9C and other “call reports” for banks; 10K, 10Q and other quarterly and annual reports that publicly traded companies must submit to the SEC; or even NCAA compliance reporting for higher education institutions.
But perhaps the most well-known example is the Sarbanes-Oxley Act. Enacted in 2002 in the wake of numerous corporate scandals, it was intended to restore investor confidence by strengthening audit committees, improving internal controls and making directors and officers accountable for the accuracy of financial statements, among other things.
Unfortunately, Sarbanes-Oxley and other regulations require a significant amount of financial reporting effort to ensure compliance, which in turn sheds light on a huge problem: how manual most companies’ financial controls and reporting remain. This issue is further compounded by compliance rules and reporting requirements evolving based on a specific administration’s objectives, adjustments to underlying accounting rules, industry trends or other changes.
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