Inefficient reporting limits financial transformation, study finds
Survey finds 68 percent have inadequate reporting systems
By Julian Goldsmith | CIO UK | Published 09:20, 30 May 12
Inefficient financial reporting could lead to unnecessary costs that impact on transformation projects, new research showed this week.
Less than half of the 1,123 finance teams surveyed had invested in financial reporting systems in the last three years, according to the report by Oracle and Accenture called 'challenges of corporate financial reporting'.
Basic spreadsheets and emails continue to be the main tools to record and distribute financial information with organisations typically spending only 1.5 percent of annual earnings on financial reporting processes.
Scott Brennan, Accenture's finance and enterprise performance consulting group executive director, advocated more embedded financial data management through an ERP system to break down the siloes in reporting.
“The current practices are having a significant impact on investor confidence when companies cannot articulate their financial results clearly. Any improvement on financial reporting systems will go straight through to the bottom-line,” he said.
Over two thirds of respondents admitted they have inadequate visibility of reporting processes, according to the report.
Over four fifths of finance managers reported they find it difficult to control the quality of financial data across the course of their reporting.
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