The Importance of Expanded Disclosure Requirements
February 3, 2011
Investment firms value companies that have an intricate knowledge of their finances.
A large part of this involves promoting transparency at every juncture. One of the most efficient and effective ways to accomplish this is to push for expanded disclosure requirements for your finances. By doing this, you can supplement basic, raw data, giving it a qualitative aspect in addition to the quantitative one.
Companies that push for this procedure through their bookkeeping tend to have a much better grasp of their finances, as compared to those that don’t. Essentially, it adds a storyline to black and white data that doesn’t provide much information outside of the numbers.
In this way, as part of a best practices process, the disclosure is more robust. If your company incorporates this procedure into its company strategy, you stand to benefit from added transparency. For more on this topic, watch the video from OpenView Labs featuring David Lewandoski.