4 challenges faced while filing compliance reports with SEC and why the best solution is on cloud
SEC reporting and filing is a square maze. It’s all structured, but there is only a distinct path that can take you to safety. Hence, it is not surprising to know that your organization’s finance team is probably on its toes every quarter. Reporting mandates and disclosure terms leave no room for sidestepping or error. It can add to the pressure for publicly traded companies’ executives to draw up an accurate report for submission to the regulatory authority.
An efficient solution to ease the burden? Cloud-based software. Lending a hand in streamlining the reporting and compliance process with alleviating error and pressure, the advent of this advancement can revolutionize the reporting landscape. Read on to learn more about the most common reporting challenges and how a cloud-based software and affiliated service can be a viable solution.
Quarterly and annual SEC filings do take up a significant chunk of process orientation. Most organizations do not pay keen attention to the time and resources that these needs, and almost all the time, face these challenges:
01. Lack of Agility
Data from multiple sources are required to file 10-Qs and 10-Ks adequately. Even if substantial time is spent culling this data, there may arise the need to seek specific information for distinct industries. Gathering this data aside, converting it into the correct language, and preparing it to be filed is an arduous task in itself. This needs expertise and time that is more than what was initially scoped.
02. Meeting Deadlines
SEC-mandated dates are deadlines set in stone. So, finance teams usually work backward and try to put processes in place along the way. What is not anticipated is the interference of these tasks with pre-defined internal and external workflows. It can skew processes and deadlines, strain resources, and create havoc in the system.
03. Legacy Systems
Most organizations have an ERP system that helps with integral finance and accounting functions. But these systems are probably not processing data most efficiently. Most often, other systems and processes are brought in to supplement this adding to complexity and expenditure for the finance team.
04. All Thumbs
If accuracy in data and timely reporting is the goal, there can’t be a siloed working approach. Collaboration is key to ensuring that the data sourcing is centralized and that internal and external teams are working hand in glove to ensure that objectives are met. Easy to read, excellent to visualize, but often, very difficult to manage.
So, what do you do to overcome these? A new data management system or perhaps amp up resourcing. But there is a far more sustainable solution. Automation and technological advancement have paved the way for cloud-based solutions that can utilize resources efficiently, enhance collaboration and lead to timely completion of tasks.
– Most service providers offer software that can automate administrative burden. Report-wide data tagging, auto-update of tagging when rolled forward, and even role hierarchies and section assigns can help stick to deadlines and accurate work.
– Most cloud-based software solutions can be integrated with existing systems to bridge shortcomings in ERP or Excel.
– Software can assist with direct submission to the regulator, saving you the worry of completing the task successfully.
– The software providers can offer services that can potentially eliminate the need for a separate team in-house. They can assist with data sourcing, number crunching, and report creation, leaving you free to focus on other critical tasks.
In summary, regulatory reporting always comes with a host of challenges in tow. A software solution and service can put your mind at ease. While this blog has skimmed the surface of how it can help, you can get more details on Rainbow – DataTracks’ solution for SEC reporting by getting in touch or waiting for our next update!
If you have questions about financial and regulatory reporting or would like to tell us what type of guidance you’re looking for, we’re waiting to help. Learn more about DataTracks’ solutions for SEC regulatory compliance and reporting. Register for a free demo and a 30-minute discussion with our SEC reporting expert. We manage over 250+clients in the US and have delivered over 15,000+ XBRL reports for SEC.