09 Feb How Companies Lose Money in Financial Reporting
Financial reporting, one of the most crucial aspects of any regular business operation, has not improved much over the last 30 years. Organizations still have to devote precious and often scarce employee time and resources to compile, analyze, and structure their finances. This process is outdated and a time-consuming challenge for new and old companies alike. There has to be a better way, but how does better financial reporting look?
The Cost of Financial Reporting
Finding and aggregating a months’ or years’ worth of financial information can look different from company to company. Still, across the board, the process can take dozens of employees spending days or even weeks to create and release accurate financial reports.
The top 25% of companies spend on average 4.8 days on monthly close reports and 15 days on annual close reports. Add that all together, companies can spend on average upwards of 73 days out of the year on financial reporting. Every publicly-traded company is required to release financial reports quarterly and annually. With the extensive time it takes, the cost of financial reporting grows out of hand quickly.
So What Can Be Done?
Without significant financial reporting advancements, enterprises have been forced to continue an outdated and wasteful practice to comply with federal regulations. The path forward, the path that benefits companies, investors, and potential investors, is clear—automation.
Automating the reporting process can save employees and companies precious time and money and provide quicker and more accurate reports to shareholders and the public. Companies must comply with regulations and release quarterly and annual reports or face severe financial penalties. Automation takes the stress out of releasing statements on time and ensuring the process occurs smoothly and efficiently.
Creating Better Financial Reporting
By utilizing Machine Learning and Artificial Intelligence, CognitiveOps Finance automates earning releases through a risk mitigation process. The program takes an older statement and analyzes against supporting documents to verify the correct and valid information. Once confidence is established, the program can begin generating reports that follow proper regulations and company-specific guidelines.
This solution helps bring financial reporting into the 21st century, saving companies time, money, and potential headaches. Through automation, businesses can focus more on their operations while providing the most accurate and up to date information for investors and the public. To learn more about how CognitiveOps can deliver end-to-end automated financial reporting solutions for your business, contact us today.