Could blockchain be instrumental in overcoming corporate reporting challenges?
The need for corporate reporting – Every business undertakes one too many operations to maintain and manage their business to be efficient and effective. Blockchain helps to make a track record and help any business to handle operation in a much simpler and comfortable manner. This article discusses about blockchain and corporate reporting challenges. You will be able to understand how digital technology and corporate reporting can be benefited using blockchain.
Every business transaction that takes place within the company or outside the company is important. No matter whether the operation is small or big, it is still important to make a record of it. This is because every operation has the power to even to change a situation of crisis into a potential growth opportunity. All the transactions and operations are recorded in various different ways depending on the convenience or yet another set of depending factors. These factors involve time, cost, manpower, etc.
Corporate reporting is realized to be one of the crucial factors in the growth of any business. The rules and regulations laid down by corporate reporting adds value to the operation and also helps in handling concerned operations without any confusion. Corporate reporting consists of auditor’s report, directors report, financial statements, and reporting, etc. Blockchain, financial regulatory reporting, and challenges faced are discussed in this article.
Ways how blockchain can help overcome corporate reporting challenges:
Financial reporting or corporate reporting as a whole is required for multiple purposes that serve the best interests of the business.
Maintaining the quality of corporate reporting
Everybody focuses on getting the job done but only very few focuses on how they get the job done. Even fewer more only focus on delivering the job outcome with quality and value. The challenge is trying to give or add value and quality among all the processes or operation while it happens. This takes time or people omit details while reporting either due to the tendency of hurrying things or they know they didn’t do the job with quality. Thus, this leads to a reduction in the quality of the end operation.
Blockchain helps to overcome this challenge by making all operations operate over a decentralized network. Through this network, all reporting is recorded automatically and no one has the ability to change or omit any data either. Thus, all operations are recorded in detail and can be accessed anywhere, anytime to make better and smarter decisions.
Flow of information
In the usual standardized reporting when something has to be communicated, the information is passed over through emails or corporate communicating applications or texts. Here various other factors such as taking the time to communicate or the means of communicating may influence the information. This is also a challenge of not being biased by any medium of communication. All information and data have to reach the concerned person without delay and at right place, right time.
With blockchain, it is easier than saying to pass on information. Since it is a decentralized network, there is no central authority who might limit the accessibility to pass over data or information. Anybody can connect with each other and has the ability to transfer data and files without restriction. This creates a strong peer to peer network among the employees. This also helps to build a strong relationship between top-level and low-level management, thus creating a strong corporate reporting in turn too.
Meeting the deadlines
Every operation has its own deadline to be met. If the operation is reported beyond the deadline it may results in disruption of other operations from taking place smoothly. For example, if the reporting of financial audits is reported beyond the deadline, then the information may not be passed over to logistics. This might affect the service or product to reach the customer at right time and place. Sometimes following the regulations might result in delay because of monitoring and maintaining the process for a quality operation or transaction. There might be wait time to get necessary approval.
With blockchain, there is not wait time to get approval. All people involved with the necessary operations are connected with each other via the decentralized network. This allows them to connect no matter the time and place. There is no process to wait for documents to be signed for a process to move forward since everything is digitized. In blockchain there is barrier or limitation that obstructs people from connecting with each other for the necessary purposes.
In all corporate business transparency is much appreciated and encouraged but rarely it is realized for its value it may provide to the process. When the operation and transaction is transparent to everyone, it reduces the rate of malpractice as no one can lie or hide any data or detail. In the usual way or corporate reporting, some information may be lost in between the communication due to various reason. These reasons include being influenced by a person or time or fear of having not given a quality outcome, etc.
Blockchain is known for its transparency. All data stored and recorded can be accessed by anyone within the network. There is no prior requirement of permission to get accessibility. This allows the information and data stored for scrutinizing and verification when needed. This provides the opportunity for all process to be clearly visible to everyone. Thus, there is no possibility to hide data or any transaction. This reduces the malpractice in huge.
The Blockchain helps to fix challenges in corporate reporting
In any corporate reporting, you can trust the operation or transaction to be of quality and truth only if you can trust your data to be quality and truthful. Blockchain helps to achieve both quality as well as truth in data. Achieving consensus with all team members is also important and with blockchain, it is easy to achieve consensus. As a result, data collected helps and will be one of the crucial factors for the success of your company.
Author Bio – Sonal Mehta
I am a Content Lead at SoluLab, a leading Blockchain Development Company, started by ex-vice president of Goldman Sachs and ex-principal software architect of Citrix. SoluLab Inc provides full spectrum, 360-degree services to enterprises, startups and entrepreneurs helping turn their dreams into awesome software products.
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