CPA.com Explains Need for a Clearinghouse of Private Co. Financial Info

CPA.com has released a position paper arguing for the need for a secure, digital way to transmit private company financial data.

The paper, “Addressing the Need for a Private Company Clearinghouse,” suggests that a digital clearinghouse for private company data answers the need, and it discusses a number of aspects of the issue, including:

• Current practices in distributing financial statements and other critical financial data, and the risks they bring.
• The growing demand for easy access to authenticated data; and,
• The components a private company clearinghouse would have to have to be effective.

“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.”
“We created this position paper to shine a light on the growing market problem related to private company financial information exchange,” said CPA.com president and CEO Erik Asgeirsson in a statement. “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, a subsidiary of the American Institute of CPAs, and Confirmation.com have jointly developed the RIVIO Clearinghouse, a secure, online financial document exchange that meets the requirements outlined in the report.

More information is available at RIVIO.com.