How IT Executives Can Help Speed Up Financial Reporting
When it comes to closing the books, the benefits of speed are undeniable. And CIOs are uniquely positioned to help their organizations reap them.
But there are signs of increasing interest. “Usage picked up substantially in 2006,” says Jeff Naumann, an SEC technology specialist. He suspects that XBRL’s release around the time of Sarbanes-Oxley doomed it to the back burner for the past two years.
GO FAST FOR THE RIGHT REASONS
A faster close is a good indicator of successful financial processes, says PricewaterhouseCoopers’ Harries. But going faster for its own sake should not become an enterprise goal. “If you improve quality and cost, [speed] usually improves, but if you drive for [speed], the others may not improve,” he says.
“When we think about closing, quality comes first,” says Dow Chemical CIO David Kepler.
“In no way should speed ever sacrifice quality. If there’s one lesson learned over the last several years, it’s that the integrity of financial reporting is paramount,” concurs Harries.
“Garbage in, garbage out,” warns KPMG’s Kuehn.
When it comes to a fast close, the bottom line is to empower companies with trustworthy, current information. “Yes, we close faster today, but what we really did is to get information to people faster,” says Kepler, drawing an important distinction for all CIOs and enterprises chasing the faster close.
Galen Gruman is a California-based freelancer.
