Although real-time financial data will still be a ways off, quarterly reporting will gradually lose its relevance for investors and management, both of whom require more timely information to make decisions. Finance will be expected to remain agile in its ability to post results between regulatory cycles while also meeting evolving reporting requirements.
2018 prediction
Finance goes real-time. When both actuals and forecasts can be produced instantly on demand, traditional finance cycles become less relevant. Finance will still need to meet external demands for cyclical reporting, but leading organizations will operate with a new mantra: There is no close. You’re not forecasting once a month or quarterly. It’s all happening in real time.
2021 reality
Companies have made efforts to speed up the close, but it’s still at best a monthly process with key information available only at that time.
Real-time reporting based on the concept of continuous accounting, where there’s no close and all information is booked in real time, has
gained less traction to date. But cloud-based ERPs with in-memory computing will bring it closer to reality.
2025 implications
The demands of off-cycle reporting will accelerate as industries converge; new business models are created; and the postpandemic economy addresses supply chain, technology, and workforce constraints. Finance will need to provide off-cycle insights while still delivering cyclical reports efficiently. Technology will help it do so, but getting the desired results won’t be a slam dunk.
