The CFOAS, in cooperation with the business advisory partner Crowe RS, organized a panel, on 22 November, on the topic: “Daily Challenges in Internal Reporting” where synchronization of various forms of financial statements was discussed.
Moderator of the discussion was Djordje Dimić, Partner, Crowe RS, and panelists were: Vladimir Ilić, CEO, Primero Rent a Car and Leo Djakovic, Manager, Advisory, Crowe RS. Panelists shared its experiences about improving internal reporting as well as the benefits that these changes brought.
Since internal reporting can be regulated by policies and frameworks other than those used for statutory reporting (which is defined by the laws and regulations), it can be challenging at the operational level, especially if there are significant deviations between different bookkeeping records. Management requirements for a large number of reports can be a challenge for the qualitative work of the financial sector. In this regard, it is important to, in advance, define rules and framework of reporting, simplify the reporting process and establish a quality planning system that increases the certainty.
Panelists concluded that internal reporting has a form and dynamics set by management and it differs significantly from company to company depending on industry, size and specific management requirements. Considering this, it is not possible to determine the general model of internal reporting that is useful to most legal entities.
Panelists emphasized that internal reporting is more focused on the future, but also based on the analysis of data from the past. It is also emphasized that the internal reports themselves largely depend on the organization of the financial sector. The issue of the independence of the controlling sector from the rest of the financial sector was also discussed by members and panelists.
We thank to the panels and CFOAS members for productive discussion