12/27/2023 0 Comments Define financeThere may also be a level of risk, as companies that close within a short window often rely more heavily on estimates and accruals which may not be exact.įor this reason, the review stage is critical. This typically means that all of their journal entries have been booked, and the high-risk transactions reconciled-but there is still a mountain of analysis and reporting to be done. We regularly talk to companies who “close the books” in three days. ![]() It begins with recording the journal entry for each transaction and activity, which leads to the review stage. The financial close process includes reviewing and reducing account balances before the accounting cycle closes. By only optimizing parts of the process, you may miss what’s creating the big bottlenecks, and potentially create even more issues down the line.ĭefining the full financial close-versus simply closing the books-will provide the holistic view your company may need to measure and improve your month-end processes. This isn’t as unattainable as you may think, and it begins with defining the full financial close.Įffectively increasing efficiency requires examining the entire month-end close process. ![]() What would change if you could create the headspace to focus on these value-adding activities any day of the month? And not only focus on them, but also get back to doing what drew you into this profession in the first place? But in the midst of the busy, stressful month-end close, measurement, improvement, and strategy get pushed to the side at many organizations. ![]() The business world runs on facts and figures, and the fastest growing companies have a measurement process in place to continually propel them forward.
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