Managing change: How to successfully implement new reporting and accounting requirements

As a financial manager, you constantly face the challenge of having to adapt to new reporting and accounting requirements. With each new regulation, every amendment to the law, and every entity-specific restructuring, the pressure to stay legally compliant while maintaining efficient processes increases.

This article will show you how to effortlessly handle the evolving framework conditions for your reporting and accounting. Find out how the right software can future-proof your financial processes and ensure you meet the highest compliance standards.

 

Transitioning to new reporting and accounting standards

You are no doubt familiar with this: New standards and laws that significantly impact the reporting and accounting processes of companies have become an indispensable part of the work of financial managers. This results in one main outcome: an ever-growing to-do list...

 

Sustainability reporting

ESG reporting (Environmental, Social, Governance) is a hot topic. In the coming years, an increasing number of companies will be required to disclose detailed information about their environmental and social practices, as well as their governance structures. It is estimated that 50,000 companies in the EU, including 15,000 in Germany alone, are required to prepare reports in accordance with the Corporate Sustainability Reporting Directive (CSRD). This poses major challenges for many companies, especially if they lack the necessary processes and tools to collect and report their ESG data.

 

Pillar 2

Pillar 2 is part of an OECD/G20 initiative to reform global taxation. Pillar 2 aims to ensure that the profits of multinational companies with revenues exceeding 750 million euros are taxed at a minimum global tax rate of 15 percent. This means that companies subject to Pillar 2 must adapt their accounting and tax reporting systems to meet the new requirements. One of the biggest challenges is the collection and compilation of all relevant data and key figures, requiring close collaboration between all departments, such as group accounting, tax department, and national subsidiaries.

 

EU increases thresholds

The EU has raised the thresholds for small and medium-sized enterprises, meaning that more companies than before will now have to comply with extensive reporting obligations. These new thresholds require the companies concerned to adapt their reporting processes and ensure that they can meet the new requirements.

 

Continuous challenges for financial managers

Besides the aforementioned new regulations, finance teams also face challenges due to changes in economic or organizational conditions. These challenges include:

 

Benefit from adaptable financial software

Changes are therefore a regular occurrence when it comes to reporting and accounting processes. To ensure that you, as a financial manager, stay up to date and avoid compliance issues, you should use software solutions that can adapt flexibly and efficiently to new circumstances.

Here are the key features and benefits of adaptable software for your reporting and accounting needs:

 

1. Automatic updates and continuous compliance

Adaptable software ensures that you are always up to date. Regular updates ensure that you always comply with the latest legal requirements without having to intervene manually. This minimizes the risk of compliance violations and saves valuable time. 

 

2. Integrated reporting and analysis

Modern software solutions include integrated reporting features for creating reports that adhere to the latest standards. User-friendly dashboards and sophisticated analysis tools enable you to gain deeper insights into your financial data and make informed decisions. This allows you to efficiently manage complex requirements such as ESG reporting or Pillar 2.

 

3. Scalability and flexibility

Good finance software must be able to evolve with your company and adapt to changing circumstances. Whether you are expanding, merging, or restructuring – your software should be scalable and seamlessly support the necessary adjustments. This helps you to ensure that your financial processes always run efficiently and smoothly.

 

4. User-friendliness and intuitive operation

An intuitive user interface makes familiarization easier and enables your team to focus on strategic tasks rather than getting caught up in the details. Good reporting software should require little training and make your team's work easier.

 

5. Data integration

A major added value of software solutions for reporting and accounting is the automated consolidation of your financial data from various source systems. This is vitally important for companies that prepare consolidated financial statements and is especially relevant in the case of takeovers and mergers. Adaptable software with numerous interfaces to ERP and accounting systems ensures seamless financial consolidation and integration, thereby eliminating manual errors and additional work, and guaranteeing data integrity.

 

6. Expert support

Besides the technical aspects, support from the software provider is also very important. Regular training sessions and dedicated customer support help you maximize your software's potential and keep you up to date. The provider should act as a partner, assisting you in both implementation and ongoing operations.

 

Your key to successful reporting and accounting

A flexible and modern software solution enables you to better manage the diverse challenges in reporting and accounting, while simultaneously enhancing the efficiency and accuracy of your financial processes. This ensures that you are not only well-prepared for current requirements, but also for future changes.

Assess your current reporting and accounting solutions to ensure they comply with the constantly evolving standards and regulations. Discover here how Lucanet can address your specific challenges and optimize your financial processes:

 

Optimize reporting with Lucanet