More companies are overcoming the hurdles to centralized financial reporting

Advances like blockchain and generative AI have the potential to improve data security, transparency, and traceability within statutory reporting, further strengthening corporate governance practices. Browse our resources to learn what the challenges of financial reporting mean for your organisation, and the benefits of moving to a harmonised solution. For multinational corporations, the best approach often blends both models, ensuring efficiency, compliance, and https://www.bookstime.com/ risk mitigation. The key is to align the audit structure with jurisdictional requirements while maintaining corporate oversight and local audit independence where necessary. A decentralized model provides stronger local compliance but requires more internal company resources and expertise to support audit execution in each country. Multinational corporations (MNCs) operating across multiple jurisdictions must conduct statutory audits in each country where they operate.

The future of tax and accounting: Embracing AI with caution

The hurdles are formidable, however, because different countries have different laws and regulations, in different languages, and their computer systems aren’t always compatible. Also, many current reporting methods are based on Excel and Word documents, and usually involve multiple drafts. The document discusses the need for multinational companies to streamline their statutory reporting processes through simplification, TOP NO.1! Luxury Replica Watches UK : AAA+ Replica Omega Watches UK With Swiss Movements.standardization, and automation. It outlines five insights and corresponding actions to improve governance and operational efficiencies, emphasizing the importance of leveraging technology. Deloitte offers a four-step model for GSR transformation and highlights their expertise and resources in delivering effective statutory reporting solutions.

For more articles to help you achieve standardized and centralized global statutory reporting, read the latest:

Swift, accurate corporate tax compliance, designed to streamline work and super charge your data. ONESOURCE Statutory Reporting leverages APIs to facilitate seamless integration with existing in-house software, enabling smooth data flow between them. Furthermore, it offers a direct connector with SAP for enhanced connectivity and efficiency. Wherever you are in your journey towards financial transformation, ONESOURCE Statutory Reporting gives you flexibility with your operational delivery model whilst driving standardisation, efficiency and control. Real-time rates, rules and indirect tax content managed by intuitive software so you can save time and mitigate risk.

Resources to support your financial transformation journey

In the industries of business and finance, statutory reporting is a cornerstone of transparency and compliance. Statutory reporting is a critical process for multinational corporations, involving the preparation and submission of financial statements to comply with legal obligations across various jurisdictions. By engaging in statutory reporting, corporations avoid significant fines, maintain statutory reporting their financial accuracy, and ensure timely submissions that meet all local compliance standards.

• It outlines five insights and corresponding actions to improve governance and operational efficiencies, emphasizing the importance of leveraging technology.
• One such system is Thomson Reuters ONESOURCE, which uses a web-based, template-driven approach to ensure consistency of statutory-reporting input and output across the enterprise.
• Browse our resources to learn what the challenges of financial reporting mean for your organisation, and the benefits of moving to a harmonised solution.
• While perceived complexity has always limited assimilation of statutory financial reporting into a centralised model, such concerns can be overcome with purpose-built technology platforms.
• India has consistently been the top location of choice for offshoring transactional activities.

These may include ESMA guidelines followed in many European nations, APAC requirements or those in emerging markets. In some instances, countries may demand local entity accounts that unearned revenue are kept separate from consolidated group statements. At the same time, companies must be careful they translate their records accurately, including proper currency conversions. For all these reasons, it’s critical that companies have a dependable strategy in place to ensure they are keeping up with all their obligations in the most accurate and efficient manner. Organisations struggling to meet statutory reporting deadlines, manage financial data effectively, and respond promptly to regulatory inquiries face wasted time, resources, and additional expenses. These challenges divert valuable assets from core business operations, hindering productivity and profitability.

Tax and accounting regions

• Consider breaking the process into steps and aim to standardise and automate to reduce the time your teams spend on checking for data consistency.
• Approximately one-quarter of survey respondents use a Shared Service Center to manage their entire statutory reporting process and another one-quarter deploys a hybrid approach by using centralized report preparation and in-country teams for review.
• The company’s local finance and compliance teams are responsible for managing the audit, ensuring documentation is available, and addressing local regulatory requirements.
• Structuring them effectively is critical for compliance, efficiency, and risk mitigation.
• Many companies postponed automation projects amid the uncertainty of the COVID-19 pandemic.
• Determining whether to outsource statutory reporting operations at a particular location or to keep it in-house depends on an organisation’s unique priorities and needs.

A connected statutory reporting function that integrates next-generation IT solutions can more efficiently be integrated with enterprise resource planning (ERP) systems and other technologies to create a single source of truth. The next step is to collect and organise the necessary financial and non-financial data to be included in the reports. This data can encompass a wide range of information, such as financial statements, tax returns, environmental data, and corporate governance reports. It’s crucial to ensure accuracy and completeness when gathering this data, as it forms the foundation of the statutory reports. The next step is to collect and organize the necessary financial and non-financial data to be included in the reports. The specific requirements for reporting depend on the jurisdiction in which an organization operates.

Beyond financial information, statutory reports encompass significant non-financial disclosures that showcase an organization’s commitment to responsible and sustainable business practices. In a recent webinar, Best Practices for Central Statutory Financial Reporting in 2021, Thomson Reuters asked the audience to share their statutory reporting headaches. More than 90% of respondents cited keeping pace with new regulations and maintaining country and/or jurisdiction specific knowledge as a top challenge. By the same token, close to 42% named increased scrutiny from regulatory authorities as a key struggle. Over the years, the central delivery model has proven to be effective in delivering standardised, cost-effective and consistent support services.

Indirect Tax Compliance

• As a result, the remaining 23% — those with no plans to centralize the financial reporting function — may be at a competitive disadvantage in a few years.
• A European multinational with 50 subsidiaries across 30 countries uses a centralized audit approach.
• Today’s global financial reporting landscape requires you to quickly and accurately prepare statutory reporting obligations, but requirements for submitting financial reports can vary widely from country to country.
• ONESOURCE Statutory Reporting is ideal for companies that need to adhere to XBRL standards.
• Organisations must comply with the reporting requirements applicable to their jurisdiction to ensure legal compliance and avoid potential penalties or legal consequences.

The current pandemic has also dramatically increased the interest in centralisation and standardisation, explains Vishal. Although cost efficiency has always been the key driver for this move to centralising operations, more recently this decision has also been taken from a risk mitigation standpoint, to ensure those processes are compliant with the rapidly changing local regulations. For example, a large multinational corporation facing increased scrutiny from regulators due to errors in statutory reporting, could use the data they have to help identify patterns and trends that indicate potential future risks.

Manage risk effectively with optimised statutory financial reporting

By integrating such information, statutory reports go beyond financial performance, demonstrating a company’s dedication to environmental, social, and governance (ESG) impact. Overlooking statutory reporting requirements can lead organisations down a perilous path, fraught with legal entanglements, reputational setbacks, operational hurdles, and financial distress. Moreover, neglecting statutory reporting compromises an organization’s credibility and trustworthiness. Lenders and investors view adherence to statutory reporting obligations as a key indicator of an organization’s governance and transparency practices. Companies that disregard these requirements are often perceived as higher risk and less trustworthy, making it challenging to obtain loans, investments, and favorable credit terms. Improved data means less risk, enhanced insights, and more robust compliance which helps inform better strategic decisions.