Preparing compliance reports can be nerve-wracking. Imagine being welcomed by hundreds of emails from the legal and finance teams in the morning. Not to forget the separate set of emails from external auditors asking for specific information and clarifications. By the time you get a sense of what needs doing, you have wasted a few crucial hours of your day. The to-do list you made in the morning to work on the next big growth plan goes on hold because now, preparing, reviewing, and coordinating the finalization of compliance reports tops the priority list.
Does it sound familiar?
Well, the good news is that you’re not alone. An article in Forbes revealed that several organizations across the globe struggle with keeping in pace with regulations in global and local markets. From facing difficulties in analyzing and reporting performances to not having standardized compliance processes in place across various markets, compliance challenges are aplenty.
So, how can organizations ensure better compliance reporting and management?
The answer lies in Disclosure Management Software
Disclosure management software, as the name suggests, helps you to create, centralize, and manage all your disclosures on one platform. This ready-to-use software can help you to streamline the financial reporting process and produce reports in various formats such as PDF and Word. Organizations across the world are using disclosure management software to integrate their financial data and publish different types of reports as mandated by regulators.
In fact, a study by researchandmarket.com revealed that the global disclosure management software market is expected to grow to $1.06 billion by 2022 at a CAGR of 16.7%.
Benefits of Using Disclosure Management Software
Improving Collaboration
Disclosure management software facilitates collaboration among different teams such as the legal, finance, HR, etc. by giving them access to modules relevant to their functions. It also reduces the constant back and forth communication that happens during the course of creating reports. What’s more, you can even provide access to external users such as external auditors to accelerate the process of reviewing and finalizing reports.
Providing Templates
Disclosure management software provides industry-specific and generic report templates. These ready-to-use templates can save you from the pain of creating reports from scratch and ensure that your reports are standardized according to the regulatory standards. You can also store your own previous year’s report as a template in the software and use the template to prepare a new report.
Version Control
Save yourself from the hassles of skimming through hundreds of emails to find the latest version of the document or to find that crucial data that was shared by the legal team a month ago. Disclosure management software gives you full control over the latest version of your report. So, you don’t have to scan your archives or pull your hair out of frustration to update a number throughout the document. You have access to the latest version, and by integrating it with ERP systems and accounting software such as Microsoft Excel, you can update the numbers throughout the report with just one click There are other benefits, too. You can automate the process to update interim reports at predefined intervals and improve transparency while preparing the reports.
In the context of the CIPC iXBRL mandate
Last year, the CIPC made it mandatory for all the eligible entities in South Africa to submit their Annual Financial Statements (AFS) in the iXBRL format. The objective was to ensure that all entities submit their AFS in a standardized format so they can shift their focus from data collection to data analysis.
If you are one of those 100 000 qualifying entities that completed the iXBRL reporting last year, you might be contemplating shifting the process in-house by purchasing one of the CIPC listed iXBRL conversion software.
However, remember that the AFS is not the only compliance report you prepare. There are multiple reports that you need to submit to the regulatory bodies of your respective industry.
If you are starting to look for iXBRL solutions, it may be useful to extend your search and look for disclosure management solutions that also have an in-built iXBRL module, that lets you do your iXBRL reporting on the same platform.
That way, you will streamline not just your ongoing iXBRL creation, but also your complete compliance reporting process.
Regular compliance reporting not only keeps you in the good books of the regulator but also plays a crucial role in improving the reputation of your organization. It aids in building a strong, trustworthy relationship with your employees, customers, and shareholders. Disclosure management software is a tool, which can help you to earn a good reputation by enabling you to adhere to the compliance rules.
How can IRIS CARBON® help?
IRIS CARBON® is a cloud-based disclosure management software with integrated iXBRL modules, that helps the qualified entities in South Africa to prepare iXBRL reports and other compliance reports such as annual reports and interim reports on one centralized platform. Trusted by some of the leading companies in South Africa, such as Nedbank, Redefine, and Old Mutual, you can be assured of hassle-free and error-free reporting through IRIS CARBON®.
To know more about IRIS CARBON®, and how we can assist you in your compliance reporting journey, check out our website.
