Workiva Automates Composite Documents with Wdesk
Workiva offers Wdesk, a cloud-based productivity application for handling composite documents. I use the term “composite document” to refer to those in which text is created and edited collaboratively by multiple contributors and which incorporates tabular and numerical data from multiple sources in a controlled process.
Composite documents often have formats defined by law, regulation or contract and must be created at periodic intervals. To comply with the requirement by the United States Securities and Exchange Commission (SEC) that companies “tag” their financial filings using eXtensible Business Reporting Language (XBRL), many companies acquired software to automate the creation and tagging of these composite documents.
Software products for handling composite documents like Wdesk have capabilities similar to those of document management applications except that they are designed to be easily used by business people with limited or no involvement by technical specialists and at much lower cost of ownership. This is especially true for cloud-based software. As is the case in using document management software, the text portion of the composite document is produced and reviewed by many people in multiple departments for various purposes in a defined workflow that includes approvals.
To facilitate reviews, Wdesk enables approvers to read, comment on and accept a document or any component of it on a mobile device. In the process of creating the document multiple versions are created and the software ensures that people work only with the current version. Permissions for creating, editing and approving the document can be granular (such as limited to a specific paragraph or table or even a single data point). Especially for internal documents (such as Sarbanes-Oxley Act attestations) Wdesk can connect substantiating documents directly to specific parts of a document.
In addition to consistency, another major advantage of using Wdesk to automate the document creation process is that it can significantly reduce the incidence of errors while reducing the time devoted to checking the document for them. For example, numbers referenced in the commentary must agree with those in the tables. These numbers often change over the course of the drafting period, sometimes frequently and on occasion late in the process when deadlines are short.
A composite document application will always contain the most accurate and up-to-date numbers. This is important because in our benchmark research on the financial close research three out of five participants said that the consistency and quality of data in company reports is a significant or very significant problem.
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