JOHANNESBURG – A local auditing and financial software industry expert has encouraged companies to embrace integrated reporting systems to attract international investments.

Theuns Holtshousen, the expert, says adopting such systems enhance transparency within firms.

He says foreign investors also rely on accurate financial information to make assessments on whether to invest or not.

“Therefore, for countries in Africa who want to attract international business and investment, good reporting and reliable information becomes as important as having sound infrastructure and good communications,” Holtshousen says.

“As an investor, it is very unlikely that a business would invest their money in a company that does not comply with international best practices, but more importantly where they don’t have – or can’t prove – a good financial standing,” he adds.

 “It is with this in mind that transparency is key but more so having an accurate set of financial reports that meets international regulatory standards will aid the business further growth opportunity in this regard.”

Holtshousen is the Business Development Manager of CaseWare Africa, whose African operation is headquartered in Johannesburg.

CaseWare is the global leader and provider of auditing and financial software.

With over 13 000 users in South Africa, it is used by accounting and auditing firms, municipalities, public entities and blue chip companies.

Holtshousen expresses encouragement at the adoption of integrated reporting systems locally and within the continent.

He says in South Africa, adoption is more than 80 percent.

“In Africa, it is growing aggressively as markets become more mature and understand the importance of accurate compliance financial reports to reflect well on the business’s financial standing – as this encourages foreign investment.”

CaseWare Africa business strategy is currently focused on Kenya, Nigeria and South Africa.

Botswana, Ghana, Mauritius, Namibia, Zambia, Zimbabwe are also driving a similar agenda with great urgency.

According to the South African Institute of Chartered Accountants (SAICA), among organisations that produce high-quality integrated reports there is a strong awareness of the concept of integrated thinking and how it benefits the organisation.

Its survey shows more than 70 percent of organizations believe integrated reporting has been a driver of integrated thinking. More than 70 percent are convinced integrated thinking has improved decision-making at the management as well as at the board level.

An equal percentage expect organisations to derive further benefits from integrated thinking.