Save Time, Reduce Friction in the Valuation Process
In financial reporting, valuations are often treated as a discrete task - something that needs to be completed accurately and delivered on time.
In practice, however, the valuation itself is only one part of a broader process. For many teams, the greater challenge lies in the work surrounding it.
Where Friction Typically Occurs
Valuation workflows involve a number of steps beyond pricing, including:
Gathering and organizing data from custodian, broker, and service provider statements
Preparing and formatting investment lists
Identifying and resolving incomplete or unclear items
Coordinating communication across internal teams and external providers
Responding to audit-related questions and documentation requests
Each of these steps is necessary. However, they can introduce inefficiencies—particularly during high-volume reporting periods.
The Impact on Financial Reporting Teams
These inefficiencies can affect both timelines and workflow:
Additional time spent on administrative and coordination tasks
Increased back-and-forth to resolve missing or inconsistent information
Greater pressure during audit cycles
Additional procedures when information is incomplete or unclear
Over time, this can shift focus away from higher-value work and toward managing the process itself.
Valuation as a Process, Not Just an Output
A valuation is not only a final number - it reflects a series of steps that may include:
Data sourcing and organization
Application of valuation methodologies
Evaluation of inputs and assumptions
Documentation aligned with applicable financial reporting standards
Ongoing communication throughout the process
When these components are handled inconsistently or across multiple systems or providers, it can lead to additional work during reporting and audit review.
A More Coordinated Approach
Some organizations address these challenges by centralizing or streamlining parts of the valuation process.
This may include:
Extracting and organizing data directly from source documents
Ensuring that instruments within the scope of the engagement are addressed
Providing documentation aligned with relevant accounting and audit standards
Supporting communication and coordination throughout the process
Approaching valuation as a coordinated workflow—rather than a standalone task—can help improve consistency and reduce inefficiencies.
Potential Benefits of a Streamlined Process
When workflows are more structured and coordinated, teams may experience:
More efficient turnaround times
Fewer follow-up requests during audit procedures
Greater consistency in documentation
Reduced administrative burden on internal staff
The extent of these benefits will vary depending on the complexity of the portfolio and the structure of the process.
How Harvest Supports the Process
Harvest’s services are designed to support both pricing and the broader workflow surrounding it.
Depending on the engagement, this may include:
Working with client-provided data and statements
Pricing financial instruments within the defined scope
Providing documentation aligned with applicable reporting standards
Offering access to supporting data, models, and market resources
Supporting communication related to the valuation process
For many clients, this approach can function similarly to an internal pricing desk, without requiring the same level of internal resources.
Final Thoughts
Valuation is a critical component of financial reporting.
But the efficiency of the process depends on more than the accuracy of the final number.
By focusing on how valuations are developed, documented, and managed, organizations can work toward reducing friction and improving the overall reporting experience.
If your team is evaluating ways to streamline valuation workflows or reduce administrative burden during reporting cycles, Harvest can provide additional support.
