Six Things To Consider Before Sharing You Financial Reports

The ultimate goal of financial accounting for each enterprise is to obtain reliable information about its financial condition and the possibility to share it with contractors securely. In this case, a digital data room is a perfect solution as this platform provides a safe collaborative workspace. Here is more about it.

Virtual data room – a perfect solution for sharing financial reports

The financial statements of an enterprise are a set of indicators characterizing the state of the enterprise’s assets and the sources of their formation, the movement of cash and capital, as well as the results of economic activity in the form of profits or losses.

The financial management system is designed to create, coordinate and store various types of financial transactions and report on them. Virtual data roomis a multifunctional software that also includes useful tools for providing and sharing financial reports. It is a secure repository for documents that streamline the rules for the preparation of financial statements that are required by external users to make economically sound decisions regarding the operation of an organization.

Data room is a set of management and analysis processes, as well as related information technologies, related to both the financial and operational activities of an organization. These processes are related to the implementation of the organization’s strategy and include financial and operational planning, consolidation of financial statements, business modeling, analysis, and monitoring of key performance indicators. Thus, VDR allows enterprises to form strategic goals, and then evaluate the effectiveness of their activities concerning them and manage the process of achieving them. 

So, data rooms allow companies to organize the collection of financial statements of branches, departments, subsidiaries, and affiliates, make corrective entries, ensure the consolidation of financial information between contractors and generate a set of financial statements.

What should be considered before sharing financial reports?

According to analysts, the market for information systems of the VDR class is growing very actively, and this dynamics will continue in the coming years. There are a great variety of VDR software providers in the marketplace. But there are six things to consider before choosing a data room solution for sharing your financial reports:

  1. Safety. Is it possible to password-protect certain documents or restrict access to them? Will you know who is accessing certain files or changing their content? Do you have permission to set rules for deleting obsolete files?
  2. Mobile access. Its presence is especially convenient if the company has employees who work outside the office.
  3. Forms. Does the system provide templates that have meta tags to make them easier to find? Does it have modules to create your templates, and if so, how easy is it to use?
  4. Installation. Can the provider change the software or hardware to suit your needs? Does the contract allow you to install the software yourself?
  5. Service and technical support. How will maintenance be organized? How quickly does the SaaS provider respond to requests in the event of a failure? How storage is reliable – backups, troubleshooting, and how to prevent them. Be sure to go to the company’s website, evaluate the qualifications of technical support, read the sections of help, user manuals, and frequently asked questions.
  6. Ease of use. Ask the data room vendor to give you a demo version. Be sure to ask about hardware failure rates and find out if the programs are compatible with your operating systems.