The objective is to enhance the accuracy and timeliness of financial reporting using specific metrics. For example, the Reporting Error Rate measures inaccuracies in financial reports and aims for less than 1%. This is crucial as even minor errors can lead to significant financial mismanagement. Suggestions like automated validation checks can help meet this benchmark.
Another key metric is the Report Submission Time, benchmarked at less than 5 days post-period close. Streamlining data collection processes and using a centralized reporting system can drastically cut down submission times, making timely financial insights more achievable.
Lastly, metrics like Data Reconciliation Time, Internal Control Effectiveness, and Stakeholder Satisfaction help ensure data integrity and stakeholder trust. Regular updates and training can maintain high standards in these areas, thereby improving the overall quality and timeliness of financial reports.
Top 5 metrics for Accuracy And Timeliness Of Reporting
1. Reporting Error Rate
Percentage of financial reports containing inaccuracies or inconsistencies
What good looks like for this metric: Less than 1%
How to improve this metric:- Implement automated validation checks
- Provide regular training to staff
- Use standardized reporting templates
- Conduct regular audits
- Improve data integration processes
2. Report Submission Time
The average time taken to complete and submit financial reports
What good looks like for this metric: Less than 5 days post-period close
How to improve this metric:- Streamline data collection processes
- Automate data consolidation tasks
- Set clear timelines and reminders
- Use a centralised reporting system
- Allocate dedicated reporting personnel
3. Data Reconciliation Time
The average time taken to reconcile financial data from various sources
What good looks like for this metric: Less than 2 days
How to improve this metric:- Integrate financial data systems
- Automate reconciliation tasks
- Regularly update and maintain data sources
- Conduct frequent interim reconciliations
- Use reconciliation software
4. Internal Control Effectiveness
Measure of how well internal controls prevent inaccuracies and ensure data integrity
What good looks like for this metric: 95% compliance rate
How to improve this metric:- Regularly review and update control processes
- Provide comprehensive training on internal controls
- Utilise internal control software
- Perform periodic control testing
- Establish a clear segregation of duties
5. Stakeholder Satisfaction
Feedback from stakeholders regarding the accuracy and timeliness of financial reports
What good looks like for this metric: 90% satisfaction rate
How to improve this metric:- Regularly solicit feedback from stakeholders
- Act on feedback to improve processes
- Engage stakeholders in reporting process improvements
- Use clear and concise reporting formats
- Provide timely updates and reports
How to track Accuracy And Timeliness Of Reporting metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
