Business intelligence and analytics company MHR Analytics’ survey has unearthed that 73% of respondents are not confident about their data and numbers on month-end closes and audit submissions.
Having surveyed 1,000 Twitter users, the Nottingham firm argues the results highlight the increasing pressures facing finance teams. Moreover, the survey revealed 27% were confident on audit submissions and month-end closes, 27% felt they needed to be better at it and 46% remained insecure in this area.
Commenting on the research, Nick Felton, senior vice-president at MHR Analytics, said: “With a backdrop of rising interest rates, an uncertain economy and increased regulation, finance and accounting leaders are facing a wide range of competing demands and this is something we’ve seen in our research as well as from working with our customers.”
He added: “Compliance, chaotic data sets and close processes paint a complex picture, but the good news is that these challenges come at a time when powerful technology is widely available to automate these processes and remove some of the burdens blighting finance and accounting teams.”
MHR Analytics added that there are three areas in which automation can ensure businesses comply with regulatory demands: close and consolidation, reporting and budgeting and forecasting.
From corporate reporting and intercompany eliminations to tax reporting and disclosure management, MHR Analytics argues that automating an enterprise’s close and consolidation processes can help businesses become better at compliance, reduce admin and create reports quicker.
Similar benefits can be made through automating reporting processes, MHR Analytics argues. Pointing at the International Accounting Standards Board’s International Financial Reporting Standard 16 (IFRS 16), which means most leases must be included in the balance sheets, the firm argues it could open up the floodgates for non-compliance if finance teams are not careful. This is because many leases used to be dealt off-balance sheet. MHR Analytics argues investing in automation software could ensure compliance and that teams retain ownership of their accounts.
The firm also argues similar wins can be made by automating budgeting and forecasting processes. While some businesses still analyse their financial data with spreadsheets, MHR Analytics suggests that businesses can boost both the accuracy and efficiency in the way in which these reports are made. It claims this type of software could do this by eradicating the risk of human error.
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