Real-Time Financial Statements

Real-Time Financial Statements
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Real-Time Financial Statements 
The accounting world is witnessing unprecedented changes in terms of moving away from conventional approaches of period financial statement reporting and sluggish closing processes towards real-time financial statement updates and issuance. With the existing technologies, financial events can be identified, measured, recorded, and reported electronically without going through the traditional paperwork. Companies worldwide now require their accounting and finance departments to embrace real-time financial information analysis and reporting. Billings et al. (2020) have identified how real-time reporting offers the benefits such as flexibility in data customization to help municipal governments in the process of decision making on a timely basis, prevent fraud, and increase audit efficiency. Real-time financial statements are prepared using structure models that form a blueprint for creating relational databases facilitating the collection, aggregation, and communication of accurate process information (Richardson et al., 2018). In general, it is projected that the shift towards real-time financial statements would make financial information more useful, relevant, and reliable.
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