The future of statutory reporting
As with everything in today’s fast-moving, ever more complicated data world, the way statutory reporting is done is changing quickly. This is because technology is improving, and the regulatory requirements are always changing.
We understand that managing this complexity can be challenging. And that getting it wrong can be costly. To remain competitive and compliant businesses must embrace a data-driven approach to future-proof statutory reporting.
Accurate data management from trustworthy sources is a critical component of any compliance process and using technology solutions to help your business maintain a single source of data truth can help. The right technology can help businesses better manage risks and ensure compliance across multiple jurisdictions. In addition, automating routine tasks and manual reporting streamlines processes, reduces errors, and frees up time and resources for wider strategic collaboration.
A data-driven approach to corporate governance
With a rapid increase in accessible data across a series of disparate and unconnected systems, many businesses struggle to keep track of information and regulatory details. And, many organisations currently under-resourced are still reliant on manual processes. Gaps and compliance failures are often inevitable. Tax errors, audits, fines, and penalties can all result in a loss of revenue, but more importantly, a loss of reputation and customer confidence for your business.
The role of data analytics and insights in statutory reporting
Accurate reporting and data analytics can provide valuable insights to help make strategic business decisions. They can help assess, find, and reduce possible risks to help ensure that businesses remain compliant.
For example, a large multinational corporation facing increased scrutiny from regulators due to errors in statutory reporting, could use the data they have to help identify patterns and trends that indicate potential future risks. Technology solutions like Thomson Reuters ONESOURCE™ Statutory Reporting can detect anomalies in financial data, such as unusual fluctuations in revenue or expenses, or discrepancies between different reporting units. Using this information, the company could then anticipate potential issues before they escalate, allowing for timely intervention and corrective actions.
In this case, better data means better governance: by helping reduce the risk of non-compliance and improving the overall quality and reliability of the company’s statutory reporting.
The impact of emerging technologies
Advances like blockchain and generative AI have the potential to improve data security, transparency, and traceability within statutory reporting, further strengthening corporate governance practices.
GenAI driven solutions can help organisations seamlessly automate their processes, improving accuracy, and enhancing decision-making. Integrated cloud-based platforms such as
Thomson Reuters ONESOURCE™ Statutory Reporting can also impact scalability, accessibility, and cost-effectiveness across multiple departments, geographies, and teams. Aligning and integrating systems wholistically can help accelerate transformation and drive further growth.
The benefits of centralised reporting
In our recent research, 30% of respondents admit that the current economic environment and inflation pressures have accelerated their plans to centralise statutory reporting.
Having a single, secure source of data, designed specifically to integrate with reporting software allows for the streamlining of audit requests and access to historical data without concerns about mismatches or overwriting, helping to eliminate errors and strengthen compliance.
Standardised and efficient data import processes, like transferring / sharing data with outsourced service providers via a hub infrastructure, multi-year tax attribute support, as well as cloud-based hosting to offer unlimited storage, can also provide efficiencies and cost savings across the business.
A data-driven future for statutory reporting
Data-driven systems, automation, and cloud-based solutions are transforming how businesses approach compliance and statutory reporting.
GenAI-supported predictive analytics find possible risks and deal with them quickly. Automated systems make compliance more efficient and reduce the risk of errors. This gives businesses more time and space to gather information and make strategic decisions that improve business performance and growth.
Platforms like Thomson Reuters ONESOURCE™ Statutory Reporting can also help with:
- Data quality
Inaccurate and poor data can lead to inaccurate insights and poor decisions. The accuracy, completeness, and reliability of data is crucial for effective, informed decision-making. Using trusted and reliable information from trusted partners helps improve data quality. This helps businesses get more accurate and reliable information, make better decisions, and manage their risk better.
- Data security
Implementing robust data security measures is the best way to protect sensitive financial data from unauthorised access, breaches, and misuse. Centralised solutions with strong data security measures provide a ‘bird’s eye view’ of all your systems. This helps protect sensitive data, reduce the risk of data breaches, and enhance regulatory compliance.
- Return on investment
While the implementation process may require significant investments in technology infrastructure, including data warehousing, analytics tools, and cloud computing platforms, data-driven statutory reporting has been proven to improve performance and more than make up for the initial outlay through improved efficiency, scalability, and cost-effectiveness.
- Robust compliance
Rolling out data-driven initiatives can make adhering to data privacy regulations, such as GDPR or CCPA, challenging. Using data-driven strategies can help address regulatory compliance challenges. This can in fact reduce the risk of fines and penalties, protecting a business’ reputation, and enhancing market trust.
For many organisations, adopting a data-driven approach to statutory reporting may require significant changes in mindset and staff behaviours. Resistance to change and a lack of data literacy can hinder successful transformation. Ultimately though, businesses will reap the wider rewards of a data-driven culture – innovation, improve decision-making, and enhance organisational efficiency.
Data- driven statutory reporting helps navigate regulatory complexity effectively
While you can never remove complexity from your organisation entirely, you can accelerate your business’ ability to navigate through it by adopting a more data focused approach to statutory reporting.
Improved data means less risk, enhanced insights, and more robust compliance which helps inform better strategic decisions. While challenging, transforming your business’ approach to statutory reporting really can help transform your business.
Are you ready to embrace the future of statutory reporting? Find out how Thomson Reuters can help you change your business’ approach to data https://tax.thomsonreuters.com/en/onesource
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