SEVEN DIMENSIONS OF MONETIZATION
Reporting and Controls
Companies need to determine how they are going to track historical data to see how they are performing against their objectives. They do this by establishing accounting controls and implementing detailed data collection and reporting. The dimension of reporting and controls helps companies ensure accuracy in financial reporting, accountability and compliance.
What is Your Company's Maturity Level?
Ad-hoc
Manual reporting, based on exports of data from legacy systems, generated for month-end. Audit preparation is difficult due to disparate systems.
Structured
Data collected manually from a variety of systems, but defined processes are in place. Regular reporting is done, but is not complete or very useful. Audit prep is slightly easier, and at least has a defined schedule.
Coordinated
System collects past performance data and provides regular reports fairly easily. Audit prep is easier with a fairly reliable paper trail. 80% of the data coming out of various systems is reliable and accurate.
Optimized
Fully-integrated system generates accurate, complete reporting in real time. Audit prep is easy, as everything is well tracked and documented. Reports are accurate, timely and reliable.
The following elements are critical parts of the process:
Establishing and managing accounting controls and corporate governance builds the foundation for a robust financial management system. Implementing effective practices helps ensure the accuracy and reliability of financial data. This process involves implementing internal control procedures, segregation of duties and adherence to accounting standards and regulatory requirements.
Audit preparation includes organizing financial records, documentation, and supporting evidence for external or internal audits. Proper preparation ensures that the necessary information is readily available to auditors and helps streamline the audit process.
Generating data-driven reports on past performance shifts focus to analyzing financial data, key performance indicators and other relevant metrics to evaluate the organization's historical performance. Data-driven reports provide valuable insights for decision-making, strategic planning, and performance evaluation.
Key Takeaways
By following this logical order, businesses can establish a strong financial management framework, ensure compliance and accountability, and leverage data-driven insights to drive informed decision-making and continuous improvement.