Are you prepared for corporate reporting’s perfect storm?
Why trusted relationships, innovative technology and world-class talent matter
Organizations face a reporting environment that is both complex and highly demanding. Organizational complexity — such as the number of systems used for reporting — continues to rise, following a trend we first identified in Connected reporting.
The needs of audit committees and supervisory boards are increasing, and better relationships between finance functions and these key stakeholders are critical. Organizations need to build strong and trusted relationships with audit committees and boards, understanding their needs and prioritizing focused, high-quality insight over quantity of information.
While the expectations and scope of corporate reporting have increased, finance leaders’ confidence in reporting is falling. They are also concerned about reporting effectiveness. A range of factors is affecting confidence and belief in the effectiveness of reporting.
As well as increasing complexity, growing demand is a significant issue, with finance leaders concerned that there is a widening gap between the reports that regulators demand and the reports that other stakeholders, such as investors, require.
Advanced technologies and sophisticated analytics offer an exciting opportunity to make reporting faster, more efficient, more accurate and better connected — meeting the heightened demands of stakeholders such as the audit committee.
However, organizations face significant challenges in delivering the promise of this next-generation reporting, including an urgent need to integrate disconnected IT infrastructure and fix poor-quality data.
Three areas are essential to delivering the strategic insight that today’s stakeholders demand: trusted relationships, innovative technology, and talent and skills development. The increased scope of the reporting generated by the finance function — driven by increasing complexity and stakeholder requirements — is stretching the finance function and is reducing confidence.