Accountants across the globe have a shared purpose: to report on financial information that will inform the most critical business decisions. As a result, it’s imperative that these numbers are delivered with accuracy and complete confidence.
But trust in Audit and Accounting has been shaken by misreporting and fraud scandals. Our recent survey revealed that trust in public companies dropped 10% in just 3 years, and also exposed a trust gap: while 70% of CFOs trust the accuracy of their financial data, only 38% of accounting professionals say the same.
If our F&A organizations lack confidence in the numbers, how can we expect the general public to trust this data?
There’s an opportunity for finance and accounting organizations to address this gap and begin increasing investor confidence.
To gain a better understanding of the role that F&A can play, BlackLine worked with independent research firm Censuswide to ask over 760 institutional investors what they think about the financial controls and processes at their portfolio companies.
Keep reading to learn a few of the key results. You can get your copy of the full report here, which includes BlackLine’s take on how to protect investor trust.
The Importance of Real-Time, Accurate Financial Reporting
High-profile examples of financial fraud and non-compliance are contributing to declining investor trust. Fifty-eight percent of those surveyed are concerned about the lack of transparency in their portfolio companies’ financial statements, and with the technological innovation available to Finance, there is no excuse for a lack of visibility into the numbers.
A more granular, real-time view of financial data is becoming essential to help investors understand how organizations are performing at any given time. In fact, 52% of investors strongly agree that when a company has a good track record of accurate financial reporting, it helps them feel informed.