Inspired by GFOA's Vision for Next Generation Financial Reporting

Change is hard, especially when it comes to long-standing processes like government financial reporting. But every transformative shift comes with a crucial question: “What’s in it for me?” For local governments, the move to next-generation financial reporting isn’t just about modernizing for modernization’s sake. It’s about reaping tangible benefits that improve operations, retain key talent, build trust with stakeholders, and create lasting value for communities.

In its Next Generation Financial Reporting framework, the Government Finance Officers Association (GFOA) lays out how unbundled, technology-driven reporting can deliver these benefits. Let’s explore how these ideas can reshape financial reporting for the better.

Technology Frees Up Humans to Do What We Do Best—and Helps Engage and Retain Talent

Financial reporting isn’t just about systems and processes—it’s about people. Yet, finance teams often face repetitive, uninspiring tasks that can lead to burnout and disengagement. Traditional reporting methods, such as compiling Annual Comprehensive Financial Reports (ACFRs), consume enormous amounts of time and effort, leaving little room for creativity, analysis, or professional growth.

The GFOA highlights this challenge:

“Spending hours producing financial reports that are not widely read—or read at all—by elected officials or the public is not inspiring work. This does not help for retaining or developing finance staff.”

This is where technology steps in—not to replace human expertise but to free it. By automating routine tasks like data validation, exception monitoring, and compliance checks, technology enables finance professionals to focus on the strategic, creative, and collaborative work they do best.

How Technology Enhances Talent Engagement

1. Reduces Burnout: Automation takes care of repetitive, time-consuming tasks, allowing staff to focus on more meaningful work. This shift reduces stress and keeps teams engaged.
2. Encourages Growth: Freed from administrative duties, finance professionals have more time to focus on other skills like strategic thinking, stakeholder communication, and advanced analytics.
3. Supports Collaboration: Technology delivers fast, clear insights, enabling teams to work together more effectively across departments.
4. Strengthens Retention: By making work more impactful and fulfilling, governments can attract and retain top talent in a competitive labor market.

The Human Element: Creativity and Problem-Solving

Even as technology handles the heavy lifting, humans remain irreplaceable. Here’s how finance professionals add value in ways technology cannot:

• Strategic Thinking: Teams can focus on analyzing data trends and crafting strategies that align with community goals.
• Problem-Solving: When anomalies or risks are identified by automation, it takes human expertise to investigate the root cause and develop actionable solutions.
• Storytelling: Humans excel at translating numbers into compelling narratives that build trust and inspire action.

By allowing technology to manage the repetitive aspects of financial reporting, governments empower their staff to lead in areas where human judgment, creativity, and empathy are critical.

The Bigger Picture: A Happier, More Effective Workforce

Engaged employees are more productive, innovative, and committed to their work. For local governments, this translates to:

• Better decision-making through more thoughtful analysis.
• Enhanced public trust through clearer, more engaging communication.
• A stronger ability to retain skilled workers and build high-performing teams.

Proactive Risk Management

Effective financial reporting isn’t just about reflecting past performance—it’s about identifying risks before they become problems. Next-generation tools enable governments to monitor their finances in real time, empowering them to act quickly when issues arise.

As the GFOA explains:

“Using AI tools could be used for other elements of the process. For example, machine learning algorithms can be used to recognize patterns that suggest irregular or fraudulent activities.”

By leveraging tools like machine learning and AI, governments can:

• Detect fraud or duplicate payments before they escalate.
• Identify budget variances and spending trends that signal potential risks.
• Ensure compliance with standards through automated validation.

This proactive approach not only reduces uncertainty but also demonstrates fiscal responsibility to stakeholders.

The Bigger Picture: Driving Community Impact

Ultimately, the goal of financial reporting is to create value—not just for governments, but for the communities they serve. By reducing inefficiencies, delivering tailored insights, and proactively managing risks, next-generation reporting empowers governments to:

• Align spending with community priorities.
• Build trust with residents through transparency.
• Make better decisions that drive meaningful outcomes for the public.

Our Goal: increase productivity and effectiveness of government employees

At ThirdLine, we provide the tools and technologies to help local governments realize the benefits of next-generation financial reporting. Here’s how:

• Automated Validation: Exception monitoring and analytics ensure data integrity, saving time and reducing errors.
• Tailored Reporting: Our platform unbundles complex financial data into audience-specific insights, helping you communicate more effectively with stakeholders.
• Proactive Risk Assessment: With tools for fraud detection and budget monitoring, we help you stay ahead of potential issues with customizable Risk Scores.
• Data Integration for Tyler Enterprise ERP powered by Munis: Seamlessly connect your Munis ERP to extract, clean, and analyze financial data in real time. Our goal: 2 hours of your time and platform live in 2 weeks.

By addressing these challenges, ThirdLine empowers local governments to streamline reporting, build trust, and focus on what matters most—delivering value to their communities.

Final Thought

Next-generation financial reporting isn’t just about adopting new tools or processes—it’s about creating real, tangible benefits for governments and their stakeholders. Whether it’s improving efficiency, delivering better insights, managing risks, or engaging talent, the GFOA’s vision highlights the transformative potential of modernized reporting.

With the right strategies and technologies, local governments can turn financial reporting into a powerful tool for building trust, driving decisions, and making a lasting impact.

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