How ESG-embedded statutory reporting solutions can protect your business
With over 150 years of trusted content knowledge and expertise in global trade, compliance, and regulatory requirements, Thomson Reuters understands that maintaining an impeccable corporate governance record in today’s complex environment is extremely challenging, and mistakes can be very costly.
The rapid increase in accessible data across disparate and unconnected systems makes keeping track of information and regulatory details even harder for under-resourced tax teams. Many organisations still depend on manual processes, which often lead to inevitable gaps and compliance failures. Tax errors, audits, fines, and penalties can all result in revenue loss but, more importantly, could damage your business’s reputation and erode customer confidence.
In the highly competitive world of global trade, better corporate governance isn’t just a business need – it’s a necessity.
The impact of staffing shortages on statutory reporting compliance
Businesses are struggling to keep up with numerous regulations, especially those operating across multiple regions, each carrying different requirements. The growing need for data management adds another layer of complexity for organisations.
In a recent report, we asked businesses to share their biggest compliance challenges with us. Over three-quarters of those surveyed said they did not have enough staff to handle the statutory reporting tasks. Additionally, 78% of them said they did not have enough staff to do the tasks well, and nearly 10% admitted to being severely understaffed.
A shortage of qualified staff tampers company performance and burdens existing employees with unrealistic deadlines, leading to a costly cycle of mistakes, poor reporting, incomplete tasks, and penalties. Many organisations still rely on time-consuming, resource-intensive, manual reporting systems and processes. This further increases the risk of errors and non-compliance, damaging a business’s reputation, deterring investors, and leading to severe legal and financial penalties.
Inaccurate or incomplete financial information can also hinder executives’ ability to calculate strategic risks, leading to poor planning and impaired decision-making throughout the business.
Stretched resources can eventually weaken internal controls, exposing unprotected business units and departments to an increased risk of fraud and mismanagement.
How technology ensures a single source of truth for your busines
But what can be done to help under-resourced, time-poor compliance teams manage the complexity more effectively?
The right technology solutions can help build a more unified approach to corporate governance by better managing risks and ensuring compliance across multiple jurisdictions. Connected solutions with a single, trusted vendor can help compliance teams navigate complicated global requirements more effectively. Simply automating routine tasks and manual reporting can help streamline the entire process, reducing errors, and freeing up time and resources for wider strategic collaboration.
Advanced technology like GenAI can help further, by speeding up day-to-day tasks like collecting, filing, and reporting, and providing an accurate and up-to-date perspective of regulations, across multiple languages and regions.
Accurate data management from trustworthy sources is a critical component of any tax compliance process and using technology solutions to help your business maintain a single source of data truth can help.
Benefits of integrating ESG solutions into statutory reporting
Statutory reporting solutions with embedded ESG (Environmental, Social, and Governance) components safeguard your business by automating routine tasks, reducing manual workload, and ensuring data accuracy and consistency. These solutions streamline complex compliance data and centralise statutory reporting across multiple jurisdictions.
By integrating ESG components, businesses can address environmental, social, and governance factors, which are crucial for corporate reputation and compliance. This integration helps mitigate risks associated with poor corporate governance, reputational damage, and financial losses. Additionally, these solutions empower compliance teams to manage risks more effectively, navigate global requirements, and support strategic decision-making, ultimately safeguarding the business’s reputation and bottom line.
Drive efficiency and reduce risks of poor corporate governance
While no one can remove complexity from your organisation, Thomson Reuters ONESOURCE™ Statutory Reporting (OSR) can help accelerate your business’s ability to navigate it by centralising statutory reporting and organising data and processes within a single, efficient platform.
A comprehensive platform designed to address complex compliance challenges, Thomson Reuters OSR can help your business build more reliable, automated processes that drive efficiency and help mitigate the risks of poor corporate governance by:
- Automating routine tasks and reducing the manual workload
- Ensuring data accuracy and consistency
- Streamlining complex compliance data
- Highlighting performance metrics and data that helps teams gain valuable insights
- Centralising statutory reporting across multiple jurisdictions
With the power to automatically stay ahead of changing regulations, Thomson Reuters OSR can help standardise even the most complex reporting systems, protecting your business against reputational and financial risks and saving your organisation money.
Additionally, embedded ESG reporting in SAP can further enhance your organisation’s sustainability efforts by integrating environmental, social, and governance metrics directly into your reporting processes. This integration ensures that ESG considerations are seamlessly woven into your compliance framework, providing a holistic view of your organisation’s impact and performance.
When Forrester Consulting conducted a Total Economic Impact (TEI) study to examine the potential return on investment (ROI) that would be realised by deploying OSR, they found that on average, OSR customers experienced: 84% ROI, 68% efficiency gains, and less than 12 months to payback.
The value of business partnerships in statutory reporting
Constant changes in regulations, lack of manpower, and outdated systems mean that accurate and up-to-date statutory reporting can be immensely challenging for even the most experienced businesses.
Finding the right partner and technology that works for your organization can help compliance teams feel more empowered, improving your business’s reputation and bottom line.
Discover how Thomson Reuters ONESOURCE™ Statutory Reporting solutions, integrated with embedded ESG reporting in SAP, can streamline your compliance processes, improve corporate governance, and help you build a stronger business.
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Or contact Thomson Reuters directly to discuss the best approach to managing your statutory reporting challenges.