Using modern technology in business is no longer a novelty. Entrepreneurs are incorporating new programs into their systems to help them manage employees, documentation, and processes more easily. But instead of implementing several such programs, you could use one that provides management across multiple industries. Virtual Data Rooms are just such programs; they help with closing deals, managing and storing documents, and even managing audits. In this article, we’ll explain exactly how VDRs help with the company reporting.
Why do companies need VDRs for audit management?
For a business to function properly, it must comply with federal and state regulations regarding the maintenance of financial records. Consequently, entrepreneurs need to keep a close eye on their financial assets and make sure the reports are up to date and correct. The assets themselves need the constant appraisal to monitor their stable value over time. This is a necessary process to ensure that the assets end up matching the amount owed on them.
When an audited financial statement is prepared, it is presented to the company’s internal control policy, and then an accountant conducts a full audit of the company’s financial statements. Already after that, the person in charge of the company’s finances checks the report, along with a copy of the annual certificate of the organization. As we can see all these stages are very time-consuming and require special attention and work with highly confidential documents. VDR helps and simplifies the work of the accounting department, automates many processes, and allows you to store all documents in one secure location.
Main features of VDR as an audit management program
Below we describe the main reasons why virtual data room is a great audit management software option and what features the space offers your accounting department.
- Extreme security and data integrity
VDR allows you to fully control access to all valuable files based on permissions and other sophisticated features. You can put watermarks on your documents that protect them from leakage and help your accountant in uploading financial documents as securely as possible. During the exchange of these documents, documents can still be controlled with permission-based file interactions.
- Automatic Reporting and Auditing
VDR provides your reports and audits, so your company’s accountants will always be aware of what’s going on inside the room and can access this information at any time. It also serves as a great way to monitor document integrity.
- Improved file organization
Large volumes of paper-based financial documents are in chaos. With VDR, you can download them electronically and conveniently organize them so you can navigate faster and have instant access to the files you need. VDR provides mass upload and drag-and-drop features, as well as smart file search and automatic indexing.
- Integration with Microsoft Office suite
Accountants often have to deal with Excel spreadsheets or other tools, and VDR allows you to do this as easily and conveniently as possible. Programs provide the ability to log in to Microsoft programs without leaving the secure environment, this also saves time and provides security
- Good overall security
VDR’s level of security can be compared to military or bank security, it’s excellent protection against external threats, viruses, file encryption, and dual authentication to protect the login system.