CFOs are struggling to keep up with how quickly the requirements for financial reporting are changing, researchers have found.
EY researchers released new data this week that concluded CFOs and financial controllers are struggling to keep up with the pace of change when it comes to corporate reporting standards and demands. One of the biggest hurdles for these professionals is actually implementing the changes, citing the cost and complexity of the shifts, according to EY.
The majority of CFOs surveyed said they are looking to increase accuracy and effectiveness of their financial reporting activity by outsourcing some of the process. Nearly a third said they’ll be looking to better data analytics technologies to improve their reporting efforts, while 28 percent said they are prioritizing flexibility and agility in their reporting functions.
“CFOs worldwide are struggling to make the most of the increased volume and speed of data available to them,” concluded EY Global Financial Accounting and Advisory Services Leader Peter Wollmert in a statement announcing the research.
“Many are encumbered by legacy systems that do not allow reporting teams to extract forward-looking insight form large, fast-changing data sets,” he continued. “Until reporting catches up with technological advancements, it will continue to be compromised.”
Wollmert and EY predict that corporations and their CFOs will continue to press for automated, digital solutions to help streamline their reporting needs. Most CFOs surveyed pointed to outsourced reporting services and external captive share service centers as having a part of their financial reporting plans for the future.
“By focusing on innovative technologies and a more nimble operating model, CFOs and reporting leaders can design and deliver the responsive reporting capability required for a world that will continue to accelerate,” Wollmert added.