News & Views
Reinventing smart compliance
“One of the primary challenges facing modern finance is that everyone wants to know your business,” says Daniel Mason, Managing Director at Prophix. “Today’s shareholders and stakeholders are demanding, and whether you are supplying statutory filings, or self-regulatory information, businesses need to harness their organisation’s digital potential to delivery information accurately, and on time.”
However, the reality is that many businesses are finding that their digital transformation is slow, and delivering accurate and timely information even slower.
“This presents a significant challenge to the modern finance professional,” warns Mason. “Pulled in one direction by management and partners seeking richer insight into the business today, and in the other by complex requirements for reporting the past. Necessary as compliance work may be, it doesn’t contribute directly to the bottom line.”
According to the whitepaper ‘Smart Compliance – Reinvent statutory reporting as the foundation of an information-driven driven business’ () “The key is automation, and CFOs need to put a plan in place to automate as much of the close and reconciliation work as possible so that the finance team can turn their attention to more strategic initiatives.
“Skills are already at a premium in the workplace, and finest minds are unlikely to be engaged for long in the drudgery of dated processes. In our experience, poor processes and an unwillingness to move beyond manual processing results in a higher turnover of good quality staff. This presents an enhanced risk and further increases the time requirement for any compliance exercise,” says Mason.
“By contrast, an automated compliance process carries a host of benefits including releasing good people to do work of more direct value to the business’s bottom line, working with partners across the organisation to deliver enhanced insight, or looking beyond the budgeting cycle to analyse the future.”