What CFOs Should Consider in Evaluating a Move to Semi-Annual Reporting

In September 2025, President Donald Trump reignited his call to eliminate quarterly financial reporting, urging U.S. companies to move to semiannual disclosure. He framed it as a way to cut costs, prioritize long-term reporting, and “allow managers to focus on properly running their companies”.

The idea is gaining traction this time around, with the SEC confirming that it will action it for review. If the rule is changed, it’s important to note that companies will be given the choice to switch from quarterly to semiannual reviews. 

While the debate has been reignited, and much has been written about the potential benefits, what continues to matter is how clearly and how regularly companies can see their financials, along with how quickly investors can respond when things go wrong. 

Modern automation now makes it possible to close continuously, giving teams near real-time visibility into their books. Reducing reporting frequency from every three months to twice a year could actually move transparency a step backward, not forward, while having broader implications for risk, oversight, and investor trust.

Below are three areas every finance leader should be considering as policymakers weigh changes to reporting requirements.

Why cutting reporting frequency could heighten risk of error and impact credibility

It’s important to keep in mind that when problems surface later, they’re usually bigger. In finance, longer gaps between disclosures can delay the detection of discrepancies, fraud or misstatements. In practice, extended reporting periods can increase both financial and, even just as importantly, reputational risk. 

Recent data shows that while the total number of financial restatements has dropped over the past decade, major restatements rose to 38% of all restatements in 2022. That means fewer errors are being caught quickly, but when they are, the impact of damage is compounded. 

Another analysis found that the average “look-back” period for restatements has increased from 393 days in 2022 to 438 days in 2023, suggesting that issues stay hidden longer, often entire fiscal years, before being corrected. 

The argument for less reporting assumes companies can police themselves effectively between disclosures. However, quarterly reporting, by contrast, forces regular internal and external checks. It compels CFOs to validate data, update reconciliations, and maintain accountability in real-time. Reducing that cadence risks dulling the reflexes that keep control systems sharp. 

In short, fewer reports don’t guarantee fewer mistakes, only fewer chances to catch them or question them. And in modern markets, where capital moves instantly and public trust is fragile, visibility delayed often means credibility lost. 

Why modernizing the close matters more than changing it

When the proposal was first introduced in 2018 by the Trump administration, the push for cutting quarterly reports rested on the idea that they are as expensive as they are time-consuming. However, advancements in automation and AI in recent years have shown an improved ability to scale operational efficiency.

Much like how we are seeing in other industries, automation software is becoming a necessary tool to streamline workflow. Routine tasks, such as account reconciliations, variance checks and journal entry validation can now be done in real-time through cloud-based platforms. 

The financial effects of inefficient processes are clear, and companies are becoming serious in addressing the issues that today’s technology can mitigate. This also includes morale— 87% of financial executives identify the close process as time-consuming and stressful, directly impacting engagement and retention. Concerning for a profession that is seeing a steady decline in licensed CPAs in the U.S. over the past decade. 

According to Google Cloud’s 2023 Finance Transformation Through AI report, 73% of finance departments have leveled up to intelligent automation, with 62% identifying the period close process as their top priority for automation. 

Quarterly reporting doesn’t need to be reimagined; it needs to be modernized. The burden isn’t in the frequency but in the outdated systems that still power the close. Automation gives finance teams the speed, accuracy, and control that dated processes can’t sustain, especially as the talent shortage grows and expectations for transparency rise. The companies that invest in these tools aren’t just making life easier for their finance teams; they’re building the kind of real-time visibility that keeps investors confident and businesses accountable.

What CFOs can do now to maintain investor confidence if reporting rules change. 

If your company moves from quarterly to semiannual reporting, you’ll have to explore how to keep investors informed and confident. Because longer intervals in filing may lead to market uncertainty, how you communicate progress and updates to shareholders should extend beyond twice a year.

Whether through monthly performance summaries or brief digital updates, consider offering proactive and more frequent informal updates. These initiatives demonstrate that the company is not only regularly monitoring its progress to make data-driven decisions, but also conveys that your team understands the importance of keeping investors in the know. 

This can be done effectively by investing in solutions like continuous close systems and automatic reconciliations that keep finance teams in the know at all times. Leveraging a real-time dashboard offers boards increased visibility into revenue and other important indicators, eliminating the uncertainties associated with waiting for the next official report. 

The idea is to maintain a continuous flow of insight, to build trust and a high standard of transparency, no matter if the formal reporting becomes less frequent. Because the tools to track performance in real time already exist, and more and more teams are adopting them. What’s changing is the standard for how often companies choose to share what they know, and the companies that stay visible between reports will be the ones investors trust most.