6 steps to strengthen your financial institution鈥檚 call report preparation process
How much time does your financial institution spend on its call report each quarter? If yours is like most, the answer is probably a considerable amount.
Based on to data collected by , banks typically invest anywhere from 39 to 44 hours to complete and file a call report.
When it comes to preparing a call report, process matters. Inefficient, poorly documented or overly complex processes can hinder your work and, worse, make it difficult for regulators or auditors to understand how the reported figures were derived.
Meanwhile, a structured, transparent and well-documented approach can significantly improve both your accuracy and efficiency. Keep reading to learn how to strengthen your call report process to deliver better results.
Why structure matters
A standardized structure forms the foundation of a repeatable and reliable process. If you have a clear process to follow, you can do so again and again while usually getting a consistent outcome.
Using a standardized structure can also be a significant time-saver. Not needing to reinvent the wheel each quarter will often cut down on the amount of time you need to invest in your call report, making the underlying work less grueling for your team.
One effective approach is to integrate core-generated reports into a spreadsheet workbook that maps general ledger and other data points using basic formulas. This allows the underlying data to change each quarter while maintaining a transparent and consistent framework.
The value of transparency
Call report instructions require institutions to retain supporting workpapers for three years. Including references to core or vendor reports in your mapping enables reviewers to quickly trace data points to their sources. Retaining your calculation workbook alongside referenced reports and documents strengthens support for internal and external reviews and also serves as a valuable training tool for new staff.
Improving your call report process doesn’t have to be overwhelming. Here are several practical steps to enhance accuracy, efficiency, and transparency:
1. Assess current processes
Conduct a thorough review of your current preparation process. Identify steps that are overly complex or require multiple data sources. Look for items where manual adjustments to core reports are required.
Then ask why these complexities exist. Do you really need such an intricate approach, or are you doing things a certain way because that’s how it’s always been done?
If it’s the latter, explore alternatives. For example, if multiple reports are used to gather the same data, consider whether a consolidated report could be built to reduce manual effort.
2. Standardize templates and mapping
Develop standardized call report templates that include mapping and report references. This will require an investment upfront, but it will improve accuracy and reduce the preparation time for future call reports.
3. Balance technology with transparency
While automation tools can streamline reporting, many automation tools create a “black box” effect, where manual or other adjustments are masked by the automation. As a result, auditors or examiners may struggle to verify your call report data.
Here, you should strive to strike a balance between leveraging technology and maintaining visibility into the process. When considering automation, think about who needs to understand your call report and whether automation might hinder their ability to do so.
4. Invest in training and development
Provide regular training for staff involved in call report preparation. Stay current with changes in reporting instructions, regulatory requirements and accounting standards.
You should also be sure to incorporate any updates into your current process.
5. Commit to continuous improvement
Strengthening your call report process is not a one-and-done task. The tools you have available to work with are constantly changing, so allow your workflows to change with them.
As technology and data availability evolve, regularly evaluate your tools and processes to identify opportunities for improvement.
6. Enhance documentation practices
Create a checklist to track required documents to make sure you have everything you need to start. Your checklist will also help ensure all referenced materials are retained with the calculation workbook.
As a result, you will be more prepared for audits and exams and more be able to effectively transfer knowledge.
How Wipfli can help
Making the investment to update your call report process will not only make it more efficient and easier on your team, it will also enhance accuracy, improve audit readiness and support knowledge transfer for new hires or successors. By investing in structure, transparency and continuous improvement, your financial institution can turn a burdensome task into one that’s more streamlined and reliable.
Wipfli helps financial institutions to improve processes, strengthen performance and stay audit-ready. Ask our team of advisors and former industry professionals how you can do more with your existing resources in order to boost your results. Learn more here.
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