Statutory reporting: Possible solutions for the modern world has been saved
Perspectives
Statutory reporting: Possible solutions for the modern world
Building a centralized delivery model
What if you could replace manual spreadsheets with centralized digital solutions that may simplify, standardize, and/or automate the global statutory reporting (GSR) process? Because today’s GSR can be fraught with complex, manual processes, inconsistent policies, and frequently changing financial reporting requirements, leading companies are working to transform GSR by working to align people with the right skillset, retooling inefficient processes, and leveraging new digital platforms. Learn how a centralized delivery model can boost transparency and efficiency so you can focus more resources on business efficiencies.
Statutory accounting: More efficient, lower risk, less cost
Instead of struggling with reporting processes that can be cumbersome and expensive, identify opportunities to streamline and optimize them. Incorporating GSR within existing transformation projects can work well because they often use similar data, processes, and technology.
For example, CFOs seeking to boost efficiency will likely expect their controllers to combine reporting processes to better prepare accounting teams for regulatory updates and new technologies. As many companies strive to get leaner, reporting transformation and optimization can play a crucial role in meeting strategic objectives. Some current disrupters sparking GSR action include stat reporting technology platforms, cloud-based ERP platforms, and hybrid work models. The strategies companies need to transform may include seamlessly connecting systems, investing in global digitalization, and clearly defining methods for capturing and reporting data.
Finance and system transformation: Centralizing global statutory reporting
By reducing manual data collection and report preparation across departments, organizations can gain greater visibility across the business and effectively meet stat reporting requirements faster and more efficiently. A connected statutory reporting platform, combined with harmonized statutory accounting processes and policies, can enable smoother integration with ERP systems and other technologies. This combines data into a single source, which can help automate the preparation of statutory financial statements by linking directly to source data.
This integrated strategy can help improve operational efficiency, risk reduction, and cost savings. One possible outcome of a streamlined reporting model? Better resource reallocation. End to end, adopting a centralized approach can unlock value enterprise wide, from increasing timely findings and achieving improved audit efficiency to shifting work out of critical periods—all of which can improve stakeholder confidence.
Centralized models to customize your stat reporting
Our clients are addressing local reporting challenges by connecting, standardizing, and automating statutory reporting functions. Transforming global statutory reporting can offer a range of benefits, from reducing internal costs and audit fees to improving transparency and compliance. Large organizations tend to organize statutory reporting into one of three operating models: centralized in-house, managed delivery, and co-sourced.
Determining whether to outsource statutory reporting operations at a particular location or to keep it in-house depends on an organization’s unique priorities and needs. Decision-making factors can include management’s desired level of control in the GSR process, accessibility to specialized 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.
Future of Work: Ways of working in uncertain times
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Centralized In-sourcing Delivery
Some companies opt to centralize their preparation of statutory reports in-house through a streamlined and automated process. The benefits of a connected reporting platform can lead to lower compliance costs in the long run. Companies that have adopted this model have often learned that centralization is more than licensing the technology. The cross-functional collaboration, standardization of accounting policies, and optimization of processes play important roles in effective implementation of this model.
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Managed Delivery
When an in-house centralized approach doesn’t meet an organization’s needs, managed delivery (or an outsourced model) may be preferred for GSR. With this approach, a third-party provider with global expertise handles a company’s statutory reporting end-to-end. Once the data is provided to the service provider, they will prepare and analyze the statutory reports with their centralized capabilities.
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Co-Sourcing Model
Organizations used to choose between in-house statutory reporting or third-party outsourcing. But now there are opportunities to deploy a co-sourced model for organizations to both leverage in-house resources and outsource when necessary. Within this model, data sources are linked to a common reporting platform with connectors to create harmonized processes. This approach can help increase global process standardization and manage talent more effectively, while still aiming to gain efficiencies when a strong finance team is present.
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Global statutory reporting transformation
No matter which path your company chooses, transforming your global statutory reporting process will likely create opportunities for efficiencies. With each model’s core focus in governance and compliance, your organization can develop a harmonized accounting process that centralizes delivery and connects reporting platforms.
Through connected and automated GSR, organizations can link to existing source systems and provide accurate, real-time data inputs within their reports. But to start transforming your statutory reporting process, you’ll need to consider the possible solutions.
Simplified and standardized processes can create efficiencies at the end of the reporting process as well—bringing us to the audit. Because many statutory reports carry an audit requirement, implementing consistent accounting policies and disclosures may lead to more efficiencies throughout the audit process, especially by using the same audit firm across jurisdictions. Standardized processes supported by a digital platform let companies gain real-time reporting visibility and can enable centralized teams to manage regional or global processes.
Deloitte can advise you on the path forward and provide end-to-end insights that fit your organization’s unique needs. From finding the specialized 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.
To see where your company falls on the statutory reporting maturity spectrum, reach out to any of Deloitte’s advisers.
Get in touch
Lakshmi Kant |
Drew Green |
The services described herein are illustrative in nature and are intended to demonstrate our experience and capabilities in these areas; however, due to independence restrictions that may apply to audit clients (including affiliates) of Deloitte & Touche LLP, we may be unable to provide certain services based on individual facts and circumstances.
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