CPA.com Releases Report on the Need for a Private Company Clearinghouse
Position Paper Discusses Demand from Lenders and Investors for Authenticated Data Sources
ORLANDO, Fla. (Oct. 24, 2016) – CPA.com today released a position paper, “Addressing the Need for a Private Company Clearinghouse,” that makes the case for the secure digital distribution of private company financial information.
“Reliable financial information is one of the foundations of capital markets,” the document states. “Emerging trends and market demands suggest the current process in the United States of exchanging private company financial information between CPA firms, clients, banks and investors is not working and needs to be dramatically improved.”
Among other findings, the report:
- Discusses current practice for distributing financial statements and other critical financial data for private companies, which can lead to increased risk of fraud and error
- Examines the digital transformation of financial services, which has led to a growing demand for readily available, authenticated sources of data
- Identifies components of a private company clearinghouse that are required to make it effective
“We created this position paper to shine a light on the growing market problem related to private company financial information exchange.” said Erik Asgeirsson, president and CEO of CPA.com. “In addition, we identified the key capabilities needed in a private company clearinghouse based on extensive discussions with firms, lenders, and investors over the past two years.”
CPA.com and Confirmation have jointly developed RIVIO Clearinghouse, a secure, online financial document exchange that meets the requirements outlined in the report. RIVIO was launched this past May, and has been recognized as an Accounting Today 2016 Top New Product and winner of a CPA Practice Advisor 2016 Tax & Accounting Innovation Award.
The position paper was released at the fall meeting of the AICPA governing Council, where Asgeirsson led a panel discussion on RIVIO. The report was developed with feedback from firms, investors, lenders and private businesses, as well as several AICPA technical committees.
More information about RIVIO Clearinghouse can be found at RIVIO.com
CPA.com empowers CPAs and businesses for the digital age. The company offers a growing list of digital products and services that help firms succeed in practice management, client advisory services and professional development.
CPA.com is a subsidiary of the American Institute of CPAs, the world's largest member organization representing the accounting profession, and operates such leading websites as the AICPA Store, AICPA.org and IFRS.com.
The company has its headquarters in New York City and offices in Silicon Valley, Calif., Dexter, Mich., and Durham, N.C. For more information, visit CPA.com.