Asset managers require clear, reliable and timely financial reporting in the face of increased investor demands, regulatory scrutiny and pressure to cut costs. Manually creating financial statements can be a significant burden on both time and resources resulting in inefficiencies and an increased risk of error.
KPMG’s Financial Reporting Solutions provides clients with a cost-effective reporting solution that saves time, increases insight and reduces risk.
Current financial reporting challenges
- Lack of suitable, scalable financial reporting technology resulting in manual processes
- Increased investor demands to deliver reports earlier, condensing the reporting cycle
- Increased dependency on short-term staffing solutions due to shortage of specific technical skills, high attrition, talent retention challenges and upskilling requirements in an ever-changing regulatory environment
- The cost of the short-term arrangements to fill financial reporting gaps is significant and increasing annually
- Lack of transparency and controls resulting in a duplication of reviews by the asset manager and administrator
- The manual production process leads to inconsistent workbooks and audit support
- Multiple legacy fund accounting systems with upstream delays and gaps in fund accounting data
- Conflicting priorities between efficiency and quality
- Compliance risk is increasing as the regulatory regime has evolved
How we can help
KPMG’s new financial reporting solution is led from our Dublin office and deploys a premium, cost-effective service through technology-enabled solutions.
Disruptive technology, delivering an effective scalable solution
We use data pre-processors, financial statement production technology, automated review and advanced blacklining technology which allows the client to reduce their dependency on staff in the peak cycle and scale their operations more easily.
Technology - financial statement production
A standard template format is customised according to the fund’s financial statements and client specifications. This applies the client-specific mapping rules and the client's notes library to automatically generate the financial statements and supporting audit workbook from the processed data reducing manual effort and removing risk. Our intuitive, transparent, user-friendly financial statement and proofs workbook reduce client review effort.
Technology - data processing
Data processing is applied consistently using Robotic Process Automation (RPA) which consumes accounting records from the administrator’s fund accounting system. This allows reports to be aggregated and validated at source, eliminates manual effort and allows any data issues to be addressed timely.
Technology – review
Our automated financial statement review tool allows us to automatically complete checks on financial statements, with proven efficiencies, particularly for large financial statements. This includes mathematical accuracy, internal, external and prior year consistency.
We ensure that the arrangement is compliant with outsourcing regulations and that the underlying deliverables meet GAAP and regulatory requirements. Financial statements templates will be reviewed by centralised technical team at the planning stage to ensure they are best-in-class.
Detailed key performance indicators (KPIs) and key risk indicators (KRIs) covering accuracy, timeliness etc. are tracked on a central dashboard providing a one-stop-shop for your oversight needs.
Tools and controls are in place to allow a high-quality product to be produced first time.
Improving turnaround times
Manual processes are reduced with technology applied at every stage of the process. Much of the remaining preparation is moved pre-cycle, significantly reducing the lead time to produce a first draft.
A team you can trust
You will have direct access to our local experts in Dublin supported by a relationship team that you can trust with customisation of a solution to fit your requirements.
We can also support your teams through technical guidance, periodic training on regulation and processes.
We can deliver an improved experience for asset managers and administrator teams. Our technology is built with the end-users in mind to deliver high-quality, timely financial statement deliverables that are quicker and easier for the client and auditor to consume.
- A partner that helps you scale your business
Our approach is to simplify your financial reporting process using technology to reduce manual effort and the cost of the financial reporting process. Our process allows you to maintain oversight while eliminating the re-performance of tasks to help scale your business.
- Governance & outsourcing compliance
We have worked closely with our Regulatory team to develop engagement models to ensure our approach is compliant with regulatory requirements.
We focus on continuous improvement. We will provide you with insights into other technologies available in financial reporting and outsourcing.
- Global firm
We work with our KPMG colleagues globally to provide a consistent global support model and apply emerging technologies to evolve our business and operating models.
- Technical proficiency
Your team will be fronted by industry-recognised leaders in reporting for alternatives and regulated funds who are engaged throughout the process.
Get in touch
The pace of change is challenging business like never before. If you have any concerns about financial reporting challenges, please contact our Financial Reporting Solutions team. We'd be delighted to hear from you.