Streamline your Financial Reporting Processes

July 11, 2019 Cassandra Fedele, Erin Herlihy, and Devin Erfle

By: Cassandra Fedele (Financial Reporting Analyst, Shareworks by Morgan Stanley); Erin Herlihy (Product Manager, Shareworks by Morgan Stanley); Devin Erfle (Product Manager, Shareworks by Morgan Stanley)

At Shareworks by Morgan Stanley, we understand that running your financial reports is only one small step in your period-end workflow. Preceded by data updates and followed by manual formulas and analysis, there is no shortage of tasks in this high-stress time. Completing these changes efficiently and accurately is an absolute necessity to ensure a successful close. Are you leveraging your system’s capabilities to streamline your financial reporting processes?

Valuation Assumption Calculations

Let Shareworks do the heavy lifting to provide consistent and repeatable assumption calculations. The system has built-in calculators which support the Intrinsic Value, Black Scholes, and Hull-White Trinomial valuation models. By referring to your plan data, Shareworks can produce historical calculations for forfeiture rate estimates, expected life, volatility, risk-free rate, and dividend yield while simultaneously creating your fair value records. These calculated figures are supported by detailed reports that will make your auditors smile!

Data Imports

Data imports give you the ability to enter large volumes of data while mitigating risk and minimizing tedious, manual processing. Simply create an Excel template with the information that you need to add or change, tell Shareworks how to read the file, and load the data. If you update the same fields on a regular basis, save the import grammar for future use. Excel makes it easy to validate the new values before importing, and Shareworks will check for formatting errors prior to updating the system records. The best part? You can initiate the file load and then move on to your next task while Shareworks commits the changes!

Super User Tip: Use ad hoc reporting or the output of canned reports to aid in creating templates for your import files. For example, most of the information that you need in order to make changes to the valuation assumptions or the fair value itself of a specific award can be found on the Expense (Valuation Records) tab of the Expensing Report in Shareworks. The data on this tab can be copied and pasted into your import template.

Ad Hoc Reporting

Add even more value to your period-end processing by leveraging the power of ad hoc reporting in Shareworks, available for public companies as well as private companies on Growth and Private Enterprise editions, to tailor the output according to your company’s specific needs. Custom reports allow you to slice and dice information by any element without risking the complications of multiple snapshot streams. Ad hoc reporting also gives you the freedom to rename headers, remove columns, add subtotals, and sort the data while avoiding manual intervention. Even better, Shareworks Expression Language (SWEL) can be used to add Excel-like formulas to the report output, reducing manual calculations within each reporting period.

Introducing Financial Reporting 2.0

Shareworks Financial Reporting 2.0 introduces a new workflow (driven by period-end), with explicit confirmation of award valuation. It offers a deeper level of integration with new financial tools and calculation options, as well as expanded reporting capabilities, including tranche- and transactional-level details. You can include detailed proof tables within the standard reports for fully transparent calculations. Our upgraded suite of reports leverages the power of ad hoc, granting you the ability to clone, modify, and schedule based on your specific period-end needs. Get the data that you want, how you want it when you need it.

With great reporting power comes even greater tools! We have seamlessly integrated the concept of administrative data lockdowns. The new lockdown functionality feeds static, point-in-time information to the financial calculations eliminating discrepancies between reporting periods and making out-of-period entries easy to identify. We have added the ability to create a company-defined fiscal calendar flexible enough to support non-calendar years including those with 13 periods instead of the traditional 12. The defined calendar feeds into reports across the platform, creating a more intuitive parameter selection process. Custom amortization schedules can be assigned to individual grants to tailor expense attribution and accommodate complex scenarios. Advanced calculation options are available for expense treatment of canceled shares and user-defined service period definitions.

This is only the beginning of the enhancements that are being developed and incorporated into Shareworks Financial Reporting 2.0. There are exciting new features and tools coming that will continue to improve workflow-driven processes and expand the system capability to create a more comprehensive and flexible offering.

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