The benefits of moving to a centralised model, organised around a global or regional shared service middle (SSC), far outweigh a siloed operation. Centralised models today address compliance processes such every bit statutory financial reporting with ease.
Centralisation is becoming more than commonplace. A report by Thomson Reuters and SSON found that close to three in four organisations will take adopted a shared services or similar centralised strategy to manage statutory reporting by 2025.
A siloed approach has the potential to reinforce impractical means of working, from what could potentially be standardised across the arrangement. What is more, silos hamper the visibility and then crucially needed beyond the procedure and numerous data sources.
The challenges of the pandemic have elevated the strategic office of SSCs in impacting business concern decisions and expanding scope. This ways that siloed working needs to go. Here are four tips to help suspension downwardly silos in your statutory financial reporting procedure.
ane. Prioritise process improvements
Silos are more easily broken when at that place are superior processes to supersede them with. Aim to redesign processes based on what the arrangement needs, then establish a standard for each process.
Across statutory financial reporting (from the preparation of fiscal statements to notes/ disclosures), a lot can be standardised and streamlined through centralised teams. Consider breaking the procedure into steps and aim to standardise and automate to reduce the time your teams spend on checking for data consistency. Farther, consider the time they spend on researching the assortment of content updates to accounting standards and other in-country regulatory disclosures across the jurisdictions you operate in. Coupled with formatting, referencing and other burdensome manual tasks your teams dedicate time to, the demand for standardisation and technology is more apparent.
Activeness: Nominate process owners within the department and give them responsibility for implementing terminate-to-stop processes. This ensures they have the necessary dominance to harmonise processes in line with organisational standards.
There is a definite motion towards a central model fulfilling most jurisdictions for statutory financial reporting merely depending upon priorities and the operational outfit of your organisation, you may consider a hybrid model. Whichever model you adopt, harmonisation is necessary to reduce the time, costs and risks associated with disparate, complex, and inconsistent process.
2. Bulldoze change management
The organisations that comprehend change and seek to gain competitive advantage thrive. If y’all have decided to pause silos and harmonise your process, and so yous have made an important step towards a faster, more efficient process.
Information technology is imperative to engage with internal stakeholders to conduct gap assessments of current and future processes. These assessments can materialise in the form of harmonising processes, from mapping, documenting to standardising processes. As these changes take place, be mindful of the effects they can have on your people.
Ensure that you identify detractors and hurting points early. This means addressing attachments to former ways of working and any staff insecurities about documenting their processes.
Action: Observe success in an internal alter program that fosters knowledge building and rewards staff for empowering each other. Share why the transformation is necessary and what benefits information technology will bring to their day-to-24-hour interval function too as to the organisation at big. Transformation is an opportune fourth dimension to revisit your state-specific disclosures and marshal them with best-practice content.
3. Discover the correct engineering solution
Technology is the enabler that brings processes together, reducing transmission action, adventure, and toll. Information technology also helps to improve controls and efficiencies, especially within virtual team settings.
When information technology comes to statutory financial reporting process, content-rich applied science with pre-tagged global templates in the local language coupled with translation capabilities can accost localisation concerns. Cloud-based platforms are better suited to this type of work, equally they enable organisations to share data remotely and securely.
Another do good to deploying applied science is that centralised platforms support and enable finance transformation. It is easier to scale a standardised process than to extend multiple.
Action: Ensure your engineering science solution integrates local content from the “big four” accounting firms. This is critical to successful harmonisation, as it provides assurance that mandated local compliance rules are being met. Look for a solution that integrates a universal language-translation function tin essentially “de-language” the unabridged statutory financial reporting production process.
4. Set the “tone from the top”
The removal of departmental silos can lead to new tech-enabled ways of working and a greater focus on value delivery.
Division managers who set the tone from the summit and have a business-starting time approach will yield better results. Their influence and leadership are key to gaining buy-in for process harmonisation plans. Team leaders too need to advocate for process excellence across statutory financial reporting procedure to ensure staff are aligned on business objectives.
Action: Measure results from before and after implementing process efficiencies, such as compliance milestones met and other benefits including toll savings. There should be an uptick in productivity and information transparency from the new benefits that have come up from breaking downwardly silos. The less tangible benefits of harmonisation, for case, more accurate reports that are consistent beyond the whole enterprise and delivered more than quickly, can exist at least every bit beneficial to your organization as the more tangible measures, even though they are qualitative.
Organisations are often burdened past silos inside global statutory reporting. Many audit processes undergo multiple iterations due to inconsistent information and process management approaches. This increases the risk of not-compliance and penalties for accidental breaches.
Global harmonisation of cease-to-end processes fosters collaboration and offers a greater sense of purpose for individuals and teams alike.
Best-in-class cloud-based content-driven technology is expected to drive seismic changes in shared services. Fortune favours the bold — those who are willing to do what is necessary to safeguard the futurity of their business. Are you ane of them?
This article was originally published by Thomson Reuters and has been republished with full permission.
Statutory Reporting Proposition Lead, Asia & Emerging Markets, Thomson Reuters
Sakshi has over a decade of professional feel in the tax and taxation engineering science industry. She works closely with Shared Service Centres and multinational customers propelling their adoption of engineering to see global tax and financial reporting requirements. She is a Chartered Accountant from the Institute of Chartered Accountants of India.