In this post-Great Recession era, deeper financial transparency overshadows disclosure reporting. For many publicly traded companies, as soon as quarterly earnings season ends, preparations almost immediately commence for the next earnings season. It’s an essential business cycle, updating your current shareholders and potential future investors. It’s also a critical component of remaining SEC compliant. Disclosure preparation can be arduous, and often as technically challenging as it is financially rigorous. It is a vital, yet delicate process with many moving pieces. Regulatory compliance and full disclosure (to current and potential future investors) makes accurate and efficient financial reporting crucial. Disclosure management solutions can bring all the moving pieces together in a cohessive, acurate, and efficient manner.
Finance and IR teams tasked to the process often not only have to worry about the financial calculations and prepping for regualtory reporting, such as a Form 10-Q (quarterly earnings), but also eXtensible Business Reporting Langauge (XBRL) requirements. The formatting of the financial data for XBRL reporting purposes presents a host of additional reporting challenges. Resources are often added to prepare the financial data, and to translate this data into XBRL-formatted tagging, upon filing with the SEC. Disclosure management solutions can greatly assist in this preparation and formatting process.
In fact, disclosure management solutions can:
- Satisfy the Need for Increased Collaboration. By maintaining a centralized repository for financial reporting on a disclosure management solution, collaboration flourishes. From ERP and EPM integration of enterprise-wide data, to individual collaborative edits, updates, annotations, and commentary on financial reports, disclosure management maximizes collaborative group efforts.
- Free Up Resources and Enhance Processes. With continuous, automated compliance monitoring, resources can be expended in other directions. The real-time updates following any changes based on monitoring lend themselves to faster and more accurate reporting. Operating solutions that can format XBRL coding from financial data equally save resources, as well (time, man power, and potentially money if this process would otherwise be outsourced). Of course, automating the actual reporting process also frees bandwidth, and greatly improves accuracy and efficiency. Did we mention that this is all SEC compliant?
- Improve Financial Reporting Details. By collaboratively preparing the reports, with extended narrative and commentary capabilities, financial reporting can be more extensive and informative. Audit trail and query-based capabilities ensure that researching material issues on reporting is robust and precise. Actuals were proven to be more accurate, which results in more accurate cash flow projections, all of which ultimately provide more accuracy and confidence in material information that is vital to business decisions.
To learn more, read the full report.