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Download The Parson Survey Results

According to a survey conducted by Parson Consulting,

60 percent of S&P 500 companies aren't yet meeting the shorter quarterly filing deadline of 40 days for 2004.

In the coming fiscal year-end, quarterly financial reports will need to be filed within 40 days of a quarter's end instead of the current 45-day requirement, and the filing deadline will ultimately be 35 days.

Similarly, annual financial reports will need to be filed with the SEC in 75 days, fifteen days earlier than the current deadline. Parson's study found that over half of the S&P 500 companies need to accelerate their financial reporting to meet that new deadline. The 10K filing deadline will ultimately be shortened to 60 days.

Complete details on the survey can be found in the link at right.

Parson, which aims to benefit from slow filiers through its financial management and accounting support services, offered a few tips for companies thinking about improving thier financial operations.

Review current processes to capture process flow and time spent on each task.

Eliminate bottlenecks by shedding unnecessary reports, processes, and metrics.

Research the latest technology to develop interfaces and reduce manual efforts, which are subject to errors.

Set priorities by determining the ROI for each potential solution. Include timeline considerations and resource requirements while evaluating new systems.

Consider both short-and long-term goals for the program by developing a road map of expectations and target action dates for each element of the reporting program.

"After evaluating their current processes, companies should revise their financial operations in a way that not only meets the standards for compliance with these new guidelines, but also improves efficiencies and positively impacts their bottom line," says Parson Consulting president Rick Fumo.

In addition,Parson Consulting recommended the following for improving financial processes:

Adhere to schedules —Adopt a formal calendar of events that synchronizes the efforts of all parties involved, noting interdependencies and, thus, prohibiting excuses for delays.

Assign responsibilities with authority and centralize the process —Empower, measure, and reward your employees for their tasks. Reduce the number of interdependent operations by cross-training teams to ensure that multiple options can be tapped in cases of unforeseen absences and problems.

Automate with new tools and technologies —Reduce manual work, report writing and physical distribution by merging company subsystems and using electronic solutions. Access the Internet for vendor updates instead of waiting for a mailed report, and use secure intranet systems to review processes and progress instead of writing multiple memos.

Use reliable historic data or estimates —Do not delay the close by waiting for actual figures or paper documentation. Use reliable estimates supported by historical data and trends to make accruals and allocations earlier in the closing process.