The manual process of completing a business’s external or public reporting has become unnecessarily time consuming, often leaving employees over burdened with busy work. What many CPA’s, CFO’s and other executives are starting to realize, is that by automating these processes preparation time can be dramatically reduced, and incorrect disclosures can be avoided.
How are manual processes ineffective?
A majority of financial statements are prepared using Word and Excel, leading to a process that consists of thousands of manual steps. These steps include a large amount of typing, copying and pasting, as well as revisions and maintenance across multiple documents. When a change is made to just one number, it often has to be reflected in several other places.
All of these manual steps leave the door wide open for input errors and inconsistencies, which can cause an incorrect disclosure. Moreover, compliance rarely dictates the structure of manual reporting, giving rise to inefficiencies and lack of attention to current standards.
How can the right automation software improve efficiency?
The biggest boost in efficiency that automation generates is through the 100’s of hours of time it can save. One of the most effective pieces of automation software we have come across, is from IFRS System, and with it companies saw preparation time reduced by hundreds of hours.
A big reason for the amount of time saved through automation is the elimination of consolidation spreadsheets. Instead of 20+ drafts, employees in charge of public reporting would only have to work through up to 4 drafts. This obviously entails a change to pre-existing processes, but it will ultimately increase productivity and improve results.
Reporting automation will also drastically reduce the risk of omissions, errors, and non-compliance. Quality software will provide warnings related to balance issues, and will always reflect current standards. With these safety nets in place, businesses experience a smoother and more economical audit process.
What does it all mean?
It requires an immense level of focus in order to ensure nothing is out of balance when it comes to your business’s financial reporting, and with automation this focus can be utilized elsewhere. With technology capable of so much, and the multiple advantages it provides within the marketplace, every company responsible for public reporting should incorporate some degree of automation into their process.
Interested in discovering ways in which your company can improve efficiency of financial reporting? Contact us at Logicon, and our industry-leading professionals will provide your organization the ability to do so, leaving you with much more time to unlock the most beneficial options for the complex decisions you face.