We also make smarter M&A decisions because we can more accurately model the risks, valuation, and costs before final decisions are made. Yet for all the ways that technology has made our work lives easier, there’s one area that still lags: the financial close process. Despite the ubiquity
Pianos, built by artisans who take pride and time to humanize a piano, still to this day made by hand, who strive for and achieve continuous innovation and improvement with their work. I never thought I would one day be working at a company where Steinway was a customer and I had the opportunity to meet with one of their top executives to discuss the innovation and improvements in his organization. And I did
Why? Because the month-end or quarter-end close depends on data produced from many other accounting processes and systems. In fact, Robert Kugel, SVP and Research Director at Ventana Research, recently commented on this in an article titled “Accelerating the Close Can Fix Other Problems.”
Back to My Roots
The financial close process is one of my favorite topics in enterprise
They are tedious and time-consuming, while distracting employees from other pressing tasks. Typically, as technology advances, businesses find more efficient methods of conquering the same tasks. Yet, puzzlingly, a benchmark research report entitled "Trends in Developing the Fast, Clean Close" discovered that businesses are spending more time on closing now than they were five years ago.
Why Are Fast Closing Times Important?
Fast closing times can benefit businesses by improving resource and labor
A recent webinar entitled "A Leap Forward for Finance Leaders: How to Shorten Your Company's Financial Close and Reporting in 2016," provides excellent tips to organizations looking to streamline their closing and reporting process.
In the webinar, a poll was conducted in which attendees were asked whether they closed their books in a timely manner. About 28.5 percent of respondents claimed they didn't close their books efficiently.
This can be a stressful process that goes on for weeks, even months, when you include the creation of year-end regulatory filings, year-end audits, and tax filings. Trust me, I’ve felt your pain.
But with the right tools and processes in place, the year-end close and reporting process can be less stressful and painful for the Finance team, maybe – dare I say it – even something you look forward to.
Remembering the Good Old Days