The Need:
All public companies are required to file quarterly and annual reports with the Securities and Exchange Commission, (“SEC”). These reports are commonly known as Form 10-Q for the quarterly report and Form 10-K for the annual report. The content of these reports is strictly monitored by the SEC and companies are required to submit these reports to the SEC within a very short period of time after the end of each reporting period.
As these reports contain specific discussion and analysis of the financial performance of the specified company for the reporting period, these reports contain a lot of numbers both in table format and paragraph format. However, due to the large discussion and analysis required, these reports are consistently prepared via word processor such as Microsoft Word which presents limitations for the use, presentation and flow of actual numerical data.
Having extensive experience in the preparation and audit of these financial statements, I continue to wonder at the process of hard coding numbers into a word document and then as the numbers are subject to change during the report generation process, each number must be manually updated as changes occur. As a result, the report generation process as it exits today is a very labor intensive process involving numerous hours spent scouring the document and tying out numbers only to repeat the process again and again as the numbers are subject to change.
The Solution:
The concept of QuickData, is a software package that integrates the numerical data functionality of excel with the word processing ability of Word. Essentially, this software package would give the user the ability to link numbers within the document to a central database wherein the live accounting data would be held. Any change to this database would automatically flow through the entire document wherever needed. Additionally, numbers in the document should be able to perform simple math functions based on data contained within the live database to allow for % change calculations as well as rounding. Additional features might also integrate guidance or recommendations regarding the required elements of the report in the form of wizards, helpful hints and best practices. Other features should also consider versioning to allow multiple users to work on the document simultaneously and should also consider providing functionality for edgarization, (the format required by the SEC for submission) and filing of the final document.
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This definately sounds very useful but are there enough end users to justify the cost of developing a program of this nature? I don't know a lot of the specifics but might it not be easier to build something in a database program like Filemaker or Access?
That is a good question. As of June 30, 2005 there were 4,937 U.S. public companies. However, this solution could also have application in the private sector as well as by accounting and consulting firms.
I have to consider, as well, that if SEC documents could use a solution like this, perhaps any document that makes use of numbers to a large degree would benefit also. Perhaps then, the idea should be broadened to include any such document. This would simplify the product into a word processor with the ability to reference a table or database for embedding live data into a document with active links for updating, reference or math functions.
This sounds like word "mail merge".
A word document is created, and when you print it picks up values from an external data source (excel, access or whatever). You can alter the data in the datasource at any time, the calculations are re-done in the datasource (e.g. excel spreadsheet). You then re-print the word document and get the new values.
If you want a definitive document to send electronically, you convert the word document to a pdf.
Sorry if I sound like a salesman for Micros***, other word-processing packages can integrate with databases as well.
Jamie, great idea. I have a prototype I've been developing for about 6 months - contact me, csteph9@gmail.com.
This has potential for evolving in to a successful product. Jamie, lets talk about it (even if doesn't make to the selected class proejcts list).
Jamie,There are several Fins software packages available with XML based data extraction/document generation/reporting features with out-of-the-box templates to customize reports. Are you targetting very small to medium companies and only English as the reporting language?