CHICAGO -- As 2004 begins, companies are running out of time to refine their financial operations to meet accelerated filing deadlines with the Securities & Exchange Commission for their quarterly and annual results. In the coming fiscal year-end, annual financial reports -- known as 10 Ks -- must be filed with the SEC in 75 days, 15 days earlier than the current deadline.
Subsequent quarterly financial reports, or 10Qs, must be filed within 40 days of a quarter's end instead of the current 45-day requirement. Ultimately, the 10K-filing deadline will be shortened to 60 days, while the 10Q-filing deadline will be 35 days.
A recent study of 2003 second-quarter results by Parson Consulting suggests, however, that more than 60% of S&P 500 companies aren't yet meeting the shorter 10Q-filing deadline of 40 days for 2004 -- and more than 51% of those companies need to accelerate their financial reporting to meet the 75-day deadline.
"U.S. companies simply must speed up their financial-reporting processes to meet upcoming SEC filing schedules," says Rick Fumo, president of Parson Consulting. "Since filing deadlines are going to shorten over the next two years, it is advisable to improve their processes now in a methodical way that's sustainable over time."
Before companies can improve their financial operations, Parson Consulting recommends conducting a thorough assessment of their current capabilities, focusing on the following:
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