While challenging, transforming your businessโ approach to statutory reporting really can help transform your business. To remain competitive and compliant businesses must embrace a data-driven approach to future-proof statutory reporting. They can also be error-prone, particularly when teams are under time pressure and/or there are last-minute adjustments to financial statements and reports. Under this model, the corporate audit team partners with a global lead auditor (e.g., PwC, Deloitte, EY, KPMG, BDO) to oversee all international statutory audits.
Key benefits of statutory reporting transformation can be:
A report by Thomson Reuters and SSON found that close to three in four organisations will have adopted a shared services or similar centralised strategy to manage statutory reporting by 2025. Some of the hurdles of managing Financial Reporting across multiple jurisdictions, include maintaining local staff, meeting local compliance requirements, dealing with local language constraints which vary from country to country โ and making the move from manual reporting in Word and Excel. Ever-changing statutory reporting requirements and heightening regulatory scrutiny are two of the headwinds facing todayโs multi-entity, multi-jurisdictional organisations. Keeping up with distinct local-GAAP disclosure requirements, reporting formats and language rules can be backbreaking work.
- A global financial services company with operations in 50 jurisdictions follows a decentralized audit model, where each subsidiary selects its own local auditor to comply with local GAAP and statutory reporting obligations.
- She works closely with Shared Service Centres and multinational customers propelling their adoption of technology to meet global tax and financial reporting requirements.
- An SSON report published earlier this year found that multinational companies are accelerating their use of Shared Service Centers, including efforts to centralize and streamline financial reporting and tax compliance across the global enterprise.
- Real-time rates, rules and indirect tax content managed by intuitive software so you can save time and mitigate risk.
- New regulations covering financial reporting, data protection and money laundering are growing at the same time as organizations are expected to disclose more non-financial information, such as environmental, social and governance data.
Tax solutions
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. Most companies have concluded that the benefits of centralizing their statutory financial reporting activities outweigh the risks, according to a new report from Thomson Reuters and the Shared Services and Outsourcing Network (SSON).
The Need for Modernizing Your Quality Management System
Recent figures from a survey conducted by the Shared Services & Outsourcing Network (SSON) and Thomson Reuters show that early three-quarters of respondents have either already centralised statutory reporting or plan to centralise it within the next three years. This gives businesses more time and space to gather information and make strategic decisions that improve business performance and growth. Accurate reporting and data analytics can provide valuable insights to help make strategic business decisions. They can help assess, find, and reduce possible risks statutory reporting to help ensure that businesses remain compliant. A decentralized model provides stronger local compliance but requires more internal company resources and expertise to support audit execution in each country. Browse our resources to learn what the challenges of financial reporting mean for your organisation, and the benefits of moving to a harmonised solution.
- The benefits of moving to a centralised model, organised around a global or regional shared service centre (SSC), far outweigh a siloed operation.
- The next steps included researching available software solutions and drafting a request-for-proposals (RFP) document for vendors.
- It includes built-in validation checks, such as ensuring supporting notes align with primary statements, to uphold the accuracy of financial data used in your statutory reports.
- Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (ยซDTTLยป), its network of member firms, and their related entities.
The PwC approach to statutory reporting
Maintain corporate standards and drive efficiency through both the internal and audit review process with standard workpapers, providing a complete audit trail of adjustments. One of the big impacts of standardising and centralising involves the move from Word and Excel to a more automated way of working. Many countries have their own accounting standards, requiring a strict tracking regime for which using Excel became too risky for Capgemini.
Streamlining Multi-Country Statutory Financial Reporting
- Decision-making factors can include managementโs desired level of control in the GSR process, accessibility to specialised talent, and the business strategy at a particular location.
- Access APIs across ONESOURCE solutions and third-party applications such as visualisation and analytical tools to achieve seamless end-to-end data flow.
- A comprehensive set of solutions for operating, controlling and managing foreign trade.
- In January 2023, Thomson Reuters commissioned Forrester Consulting to conduct a comprehensive Total Economic Impactโข study on ONESOURCE Statutory Reporting, aiming to analyse its potential financial impact and return on investment.
- Automation allows organisations to capture and store data in one location to stop re-keying errors.
- By automating tasks and standardising the process, ONESOURCE Statutory Reporting saves you data preparation time, reduces filing and submission errors, and enhances the accuracy of your financial reports – which helps you to stay compliant.
Through its translation capabilities, international companies can use it regardless of whether they produce financial statements centrally in a shared service centre or centre of excellence, locally within a country, or through a hybrid model combining both approaches. Correct, timely financial reporting is income summary so important to multinationals that many are attempting to standardize their processes in this area, either through centralized shared service centers or a hybrid hub-and-spoke system of some sort. The hurdles are formidable, however, because different countries have different laws and regulations, in different languages, and their computer systems arenโt always compatible.
Centralized Statutory Reporting Requires People and Technology to Work Together
From finding the specialised accounting, tax, and audit professionals to connecting you with our trusted alliances for software automation, count on us for insights and experience in global statutory reporting transformation. Determining whether to outsource statutory reporting operations at a particular location or to keep it in-house depends on an organisationโs unique priorities and needs. Decision-making factors can include managementโs desired level of control in the GSR process, accessibility to specialised talent, and the business strategy at a particular location. Other considerations that come into play when selecting a GSR model for your business include the size of the local legal entity and complexity of local regulatory requirements.
- This way, organisations spend far less time reviewing information and ensuring data consistency.
- Manual data handling along with outdated and decentralized data models across systems, departments, and geographies may lead to reporting errors, increased discrepancies, and inefficiencies.
- By the same token, close to 42% named increased scrutiny from regulatory authorities as a key struggle.
- Access local language, best practice, country-specific reporting templates and content updates by leading experts.
- Hay is head of Proposition, Statutory Reporting and Shared Service Centers at Thomson Reuters.
- In this scenario, the risks of delayed reporting, or even non-compliance, cannot be ruled out.
- The provided standard content is pre-tagged, and the software can export your report in the correct XBRL format, ensuring it meets the specific tagging requirements for electronic filing with regulatory bodies.
A company with 163 entitiesโas in the previous exampleโcould reduce the time necessary to complete its entire statutory reporting process from 1,048 days of work to a mere 349 days, saving more than two years of additional work. 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. ONESOURCEโs templates eliminate Word/Excel incompatibility issues and https://historia.grupocarhua.com/the-essential-guide-to-understanding-cap-rate-on/ allow for the automation of many routine tasks, including error-prone and time-intensive manual data-entry.