Under current public scrutiny, the quality of financial reports has been deteriorating.

 

financial reports

The Financial Reporting Requirements Act of 2007 (FRRA) has been a blessing for many American companies. This act was created to provide better transparency to the public and required all publicly traded corporations in the United States to file Financial Reports with information about their business. The goal was that this would help people make an educated decision on whether or not they wanted to invest in a company's stock, but since then, it has become increasingly difficult for these companies to generate Financial Reports without spending more money than they should have too.

Aware of new global accounting standards

The International Financial Reporting Standards are a set of principles designed by the International Accounting Standards Board. Even the companies that have already been following a new global accounting standard are experiencing major strains. Companies from all over the world are finding it more and more difficult to keep up with the increasing demand for transparency in finance.

International Business Benefits

Shifting away from the push for international trade limitations can benefit both businesses and consumers around the world. The new transparency laws have helped some nations adopt higher standards of living. The exporting of cheaper products to other countries can lessen the national tax demands and make the market a lot more reasonable in pricing.

A more efficient way of negotiating with vendors and streamline communications has led to a better corporate culture with modern technology. Many large corporations can now increase their exposure to the international market.

The International Financial Reporting Standards will help simplify the process of evaluating potential business partners and future investments. Increasing transparency is understandably important to many consumers, but it has brought new challenges for most organizations. Under the new transparency demands, it can be hard for companies to also handle their own financial needs put those demands into practice in a company that has never had to store and retrieve documents of this type before.

DMS Technology to the Rescue

As companies work to comply with IFRS standards, it can be helpful to equip them with the right tools. Document management software can help companies meet the requirements of IFRS.

Most publicly-traded companies in the world's major economies have adopted IFRS requirements for public reporting. Investors generally require this information to vet their options. Businesses need to list the same information in order for comparisons to be made.

A DMS program can help with the management of information in a way that makes it easy to process, simple to read. The newly required transparency and IASB requirements have made it highly difficult. Mistakes in your filing system are a very real risk, but this program will take away much of their power.

Document Storage Standards

Another area of business affected by these new standards has been the retention and destruction of certain information. Every company is now required to retain certain documents for public assessment, and some can no longer be shredded.

Britney Pay with Docupile says, "A DMS like Docupile, for example, allows businesses to automate the deletion or movement of certain files at certain times.". Since the IFRS requires your business to keep a financial report for five years, you can configure Docupile to delete any files automatically on a date five years in the future. You could also tell the system where to place the file after it has been accessed.

You can implement a document management solution that will automatically get rid of old documents when they are supposed to be gone without having to constantly check for them.

Easier Compliance with the Right Tools

Global financial reporting standards are affecting the operations of an increasing number of corporations. It has gotten harder to operate abroad with these heightened standards. It can be tricky to abide by these regulations without implementing the right tools.

A truly effective DMS solution should help with this process. Updating your DMS for Accounting could take only a few hours of programming. Once the programming is finished, you will no longer need to work on that project.


Location: United States

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