In an ever-increasing competitive environment, privacy, sustainability, and governance have become the key imperatives for companies bent by stringent regulatory policies. Qualitative and high-standard reporting has become a page-turner in companies as its performance is decided by economic, social, and corporate governance (ESG). One of the bottom-line goals of integrated reporting is to communicate governance, strategy, and performance to drive sustainable value both in the short-term as well as long-term in companies.
So US CPAs as specialized accountants can adopt integrated accounting for the following benefits:
- Enhances governance and transparency.
- Builds strategic communication with stakeholders.
- Share integrated thinking with employees at the organizational level.
- Feed better investor confidence.
Integrated reporting brings an inclusive picture of both organizational and non-organizational performance to help accountants like US CPAs share accurate and sensible 360-degree information to stakeholders, customers, and investors. The power of integrated accounting is that it brings transparency and governance to business. According to a Grant Thorton survey, it is found that over 10% of the holistic value is brought to business by integrated accounting.
Recently the trend is that many companies have started adopting integrated accounting into their regulatory and governance codes. So what are the key drivers that made this adoption possible?
- The rise in Corporate Social Responsibility (CSR) activities and spending in companies in response to the regulatory pressure from the government has pushed accountants and business leaders to adopt integrated accounting. Here not just for the sake of compliance integrated accounting has taken the center stage but also to help a wide picture to all the stakeholders involved in the funding of these activities.
- Secondly, the investors play a major role in the inclusion of integrated accounting in companies. Unlike earlier investors moved from the normal confines of the financials of a company. They are completely aware that the ESG factors can make or break the company’s success and performance. In order to have an overview of the company’s financials and non-financials, investors are advocating for CPAs and other financial professionals to adopt integrated accounting. According to a recent study, over 10% of investors are in need of integrated accounting.
- Accounting professionals like US CPAs can shift their operations by warding off re-keying issues that bring errors and cost time. Integrating accounting helps accounting staff to concentrate on higher goals and conduct business partnerships. Standalone accounting is yet another pitfall for fast-forward accounting professionals like US CPAs where integrated accounting promises real-time financial information to make informed and accurate finance decisions.
- One of the late realizations among companies is that they found accounting reporting standards and information are meeting the expectations of the investors and stakeholders as they are more short-term in nature. To improve this area, accounting professionals with global certifications like US CPA are geared towards adopting integrated accounting methods.
Finally, nearly 60% of finance and accounting firms are alien to this concept and hold gold standard accounting credentials from the best CPA Review Institute in India, you may be wondering how integrated accounting can be deployed at the enterprise level? We got you covered! Here are some tips for better and wider adoption of integrated accounting.
- Build a concrete regulatory framework in your organization.
- Enhance the interest of the investor to widen market presence.
- Set aside a budget for the adoption of an integrated accounting model.
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