Disclosure management software turns closed books into a filed report. It links numbers from the ledger or consolidation system into the statements, notes and narrative, lets many people draft and review the same document, tags it in XBRL, and files it with the regulator.
What it does
A quarterly or annual report is a long document assembled by finance, legal and investor relations, with thousands of numbers that must agree across tables, notes and text. Disclosure software keeps those numbers linked to their source so that a late adjustment flows through every place it appears, tracks versions and review comments, and checks that totals tie. It then tags the document for machine reading. For SEC filers, Inline XBRL is the format the SEC describes as a single document that is both human-readable and machine-readable, and the EDGAR Filer Manual sets out the technical requirements for submissions. Staff interpretations of the reporting rules are collected in the SEC Division of Corporation Finance's Financial Reporting Manual.
Beyond periodic reports, products in this category prepare proxy statements, ownership filings, registration statements, statutory accounts in other countries, sustainability reports and board packs. Some vendors are software only; others combine software with filing agent services, where the vendor's staff submit the filing.
Who uses it
The SEC reporting or external reporting team owns it. The controller and technical accounting contribute numbers and notes. Legal and investor relations draft narrative sections. Auditors review drafts. The filing itself may be done in-house or by a filing agent.
The parts a typical product has
- Linked data from the ledger, consolidation tool or spreadsheets
- Collaborative drafting with roles, versions and comments
- Tie-out and consistency checks
- XBRL and Inline XBRL tagging and validation
- EDGAR and other regulator submission, or filing agent service
- Templates for 10-K, 10-Q, proxy and ownership forms
- Statutory, sustainability and board reporting
Where it meets other categories
Numbers come from the close and consolidation and the ERP. Tax footnotes draw on tax provision tools. Disclosure controls and sign-offs connect to audit and SOX compliance. Board and management packs overlap with FP&A reporting.
Questions to ask a vendor
- How do numbers link to our consolidation system or spreadsheets, and how are changes traced?
- Do you file with the SEC directly, through our filing agent, or as our filing agent?
- Who tags the XBRL: our team, your staff, or both, and how is it reviewed?
- Which other filing regimes and languages do you support?
- How are access and drafts controlled before an earnings release?
- What happens on filing day if something fails?