Taming the complexity of statutory reporting
A recent Stripe study, cited by CFO.com, reveals that 62% of surveyed finance leaders view tax and compliance as a growing priority. As companies seek to cut costs and minimize penalties in financial disclosures, these areas have taken on greater importance.
Yet, despite its growing importance, statutory reporting remains one of the most complex and time-consuming finance functions. Finance teams must navigate a constantly shifting regulatory landscape, aggregate data from disconnected systems, and produce compliant reports — all while ensuring accuracy and efficiency. Without the right tools, the process becomes prone to errors, delays, and financial risk.
How can finance teams solve these challenges? The key lies in automation, standardization, and smarter technology.
Common roadblocks in statutory reporting
Finance and accounting teams encounter the following four challenges when preparing statutory reports, leading to inefficiencies, increased compliance risks, and strained resources.
Data aggregation hurdles
- Financial data is often spread across multiple systems, from enterprise resource planning (ERP) platforms to spreadsheets, complicating consolidation efforts
- Manual interventions and workarounds increase error risks and consume time that could be spent on valuable analysis
Regulatory complexity
- Compliance requirements vary by jurisdiction and change frequently
- Keeping up with evolving SEC, ESEF, IFRS, and GAAP standards adds layers of difficulty
- Non-compliance can lead to fines, reputational damage, and audit scrutiny
Lack of standardization
- Inconsistent statutory reporting formats across countries make it difficult to maintain uniformity
- Variations in reporting structures hinder audit readiness and financial transparency
Technology integration barriers
- Legacy systems and disconnected reporting tools slow down efficiency
- Finance teams need solutions that integrate seamlessly with existing systems while improving reporting speed and accuracy
Addressing these key challenges is crucial for organizations aiming to streamline statutory reporting processes, reduce compliance risks, and optimize resource allocation.
Strategies to overcome statutory reporting challenges
Navigating the intricacies of statutory reporting requires finance teams to adopt strategies that automate workflows, enhance compliance, and eliminate inefficiencies.
1. Automate data aggregation
Integrating multiple financial and operational data sources into a unified system establishes a single source of truth, streamlining data consolidation. This integration and automation reduce manual efforts in data collection and synchronization, thereby minimizing human errors and accelerating reporting processes. For instance, financial data aggregation can bring about real-time insights instead of relying on outdated, manually compiled data, enabling faster and more informed decision-making.
2. Implement compliance-driven reporting solutions
Utilizing flexible reporting solutions enables swift adaptation to evolving regulatory requirements, ensuring that reports meet country-specific compliance standards. Such solutions reduce audit risks through built-in controls, version tracking, and secure workflows.
3. Standardize statutory reporting
Employing structured templates promotes consistency across global reporting requirements, enhancing audit readiness and financial transparency. Standardized processes, coupled with automated reconciliation, currency conversions, and data validation, ensure accuracy. This standardization not only streamlines reporting but also builds trust and confidence among stakeholders.
4. Integrate advanced technology solutions
Overcoming the limitations of legacy systems and siloed reporting tools involves implementing modern solutions that seamlessly integrate with existing infrastructures. This integration enhances reporting speed and accuracy, freeing finance teams from manual data handling and positioning them to leverage out-of-the-box, cloud-native low-code solutions — technologies that Gartner predicts will underpin 70% of new applications by the end of 2025, up significantly from less than 25% in 2020.
By embracing these strategies, you can shift your typically cumbersome statutory reporting obligation into a streamlined, efficient process that supports broader business objectives.
Where does Anaplan fit in?
Anaplan’s Disclosure Management application improves your statutory reporting by streamlining data integration, automating complex workflows, and reinforcing compliance standards.
- Rapid implementation with unmatched scalability: Your business can quickly deploy Anaplan’s Disclosure Management application, typically going live within two weeks, with setup taking only hours. Its scalable design effortlessly supports diverse reporting needs across multiple regions, subsidiaries, and regulatory requirements, accommodating your business’s growth and evolving demands.
- Finance-owned reporting: Enable your finance team to take control of reporting processes without relying on IT departments. By integrating seamlessly with Microsoft Office, your team can easily adopt and operate within a familiar environment — eliminating the steep learning curve that often accompanies new solutions.
- Automated and connected data management: Connect financial, operational, and external data sources into one platform, providing accurate and up-to-date reporting for your business. Real-time data synchronization eliminates manual updates, reducing errors and allowing your team to concentrate on insightful analysis.
- Effortless compliance and audit readiness: Anaplan supports your compliance with standards including SEC, ESEF, GAAP, IFRS, and various country-specific regulations. Enhanced audit features like built-in audit trails, version control, and permission management deliver full transparency, helping your business minimize risk and simplify audits.
- Boost efficiency through advanced collaboration: Real-time co-authoring enables your finance team, auditors, and executives to collaborate seamlessly, improving the efficiency of your reporting processes. Streamlined workflow approvals and automated notifications further reduce cycle times, boosting overall productivity.
Take the next step toward simplified statutory reporting
Regulatory compliance is constantly evolving, but your reporting process doesn't have to be a constant struggle. With the right solution in place, your finance team can significantly reduce complexity, minimize risk, and free up resources to focus on strategic initiatives.
Learn more about Anaplan
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