SAN MATEO, Calif.—(BUSINESS WIRE)—April 21, 2005—Ventana Research, the leading provider of Performance Management research and advisory services, will unveil the results of the Financial Reporting and Consolidation research study at a webinar on May 4, 2005 at 9am Pacific.
The study results highlighted areas where finance organizations can make measurable improvements to their effectiveness such as achieving a faster, cleaner accounting close, providing managers with a substantially broader set of information (such as leading indicators, competitive benchmarks, etc.) and giving employees a better sense of how well they are performing. Ventana Research asserts many of the actions finance executives can take to improve their effectiveness will also enhance their operating efficiency and reduce their cost of regulatory compliance.
Sign up for the webinar at www.ventanaresearch.com/financewebinar to gain insight on the study findings from the research author, Robert Kugel, Ventana Research VP and Research Director of Financial Performance Management.
The Financial Reporting and Consolidation research study sponsored by Cartesis, Clarity Systems and Cognos captured responses from line-of-business and IT professionals. The purpose of the study was to assess the current state of financial and managerial reporting as well as the closing and consolidation environment, identify issues and opportunities and assess how technology supports these activities and determine how regulation (chiefly Sarbanes-Oxley) has had an impact on reporting.
The research points to key areas where finance departments can increase their impact on their company’s performance:
- Close the books even faster: 57% of companies take more than five days to close the books; 73% believe it should be four days or less
- Decrease spreadsheet use: Only 27% of companies that describe themselves as heavy users of spreadsheets are able to complete their close in four days or less compared to 49% of those that use them in a more limited fashion.
- Cut the cost and burden of regulatory compliance: Ventana Research asserts most changes supporting a faster close also promote financial control and compliance. We found 47% of respondents believe spreadsheets pose a control issue. Of the total sample, 32% are looking for ways to implement better controls while 15% are looking for a replacement.
- Improve visibility and responsiveness: Finance departments need to provide executives with more leading indicators - only 50% of those surveyed get enough of this information. They must collect, analyze and distribute sufficient data about the world outside the corporation. More than three-quarters (79%) stated they receive too little information about their competitor’s performance.
- Increase information adequacy: Only 54% of the firms sampled provide individuals with adequate details about their own performance.
The study also quantified the gulf between business and IT perceptions in Nine Categories of Information Adequacy. "We were struck by the consistent, significant difference between line-of-business and IT perspectives of information adequacy," said Robert Kugel, Ventana Research VP and Research Director for Financial Performance Management. "While few finance and LOB respondents thought they received more than enough information, IT and business analysts consistently overestimated their perception that they had provided more than enough intelligence.”
To jumpstart your efforts to improve the strategic impact of finance on your organization, attend the Ventana Research webinar on Wednesday, May 4 from 9:00 am to 10:00 am Pacific. Register at www.ventanaresearch.com/financewebinar. Webinar attendees will receive a copy of the research Executive Summary and recommendations.
About Ventana Research
Ventana Research is the leading Performance Management research and advisory services firm. We help companies align business requirements with technology solutions to improve performance. What makes Ventana Research different from other analyst firms is our focus on Performance Management for the CFO, CIO and COO, the deep experience of our analysts, our ongoing research and objective services. To learn more about our Performance Management workshops, assessments and advisory services, visit www.ventanaresearch.com.
Media Contact: Marisela Reynoso
(925) 242-2579 marketing@ventanaresearch.com
