The “last mile of finance” is the final stage that companies must navigate at the end of a reporting period to finalize documents such as their annual financial statements or annual report ready for publication. Like a marathon runner pushing through the final, most grueling meters of a race, finance departments have to slog through seemingly endless Excel files, wrestle with complex manual processes, and overcome never-ending coordination loops. This demanding home stretch can result in stress, rushed work, and unfortunately also errors in the preparation of the annual report, potentially exposing the company to legal risks.
But it doesn't have to be like that. Imagine that instead of fighting your way through a dense jungle of figures and data, you could follow a clear, well-marked route. That's the promise of disclosure management software—and that's what this article is all about.
What does disclosure management mean?
Disclosure management is the process of fulfilling external and internal reporting obligations. It is a cornerstone of financial communication, ensuring that your company conveys important financial information to stakeholders and regulatory bodies in an accurate, timely, and compliant manner. Annual and financial reporting, ESEF reporting, and ESG reporting are all part of disclosure management.
However, this “last mile of finance” is far from a walk in the park. The complexity and dynamics around collecting and reviewing financial data, combined with the need to deliver accurate and timely reports, can be challenging. At the same time, the process has enormous potential for optimization.
Disclosure management: The greatest challenges
Many companies encounter similar problems with disclosure management:
Too much manual work, too little automation: Many finance departments still use Excel to create their financial reports. However, this is highly susceptible to errors, requires significant time for checks and troubleshooting and, in the worst case, can lead to inaccurate reports.
Many stakeholders—little structure: Numerous departments and employees are involved in disclosure management. There is often a lack of clear workflows and task allocations, which leads to unnecessary coordination effort, delays, and bottlenecks.
Time pressure: Without the right tools, creating and submitting reports on time becomes a real challenge.
Problems with collaboration and version control: Coordinating feedback from different stakeholders, managing multiple document versions, and maintaining a clear audit trail can quickly become challenging without the right software.
Data security and accuracy: Manual processes increase the risk of errors and inaccuracies, which can undermine confidence in the disclosed data.
Solving problems with disclosure management software
Software solutions for disclosure management address precisely the areas where your pain points are the greatest. Among other things, they can:
- Automate manual processes
- Reduce susceptibility to errors
- Improve collaboration with colleagues
