Continuous Accounting is the Key to Faster Close, Smarter Reporting

Posted by Thomas Sutter, Global Solutions Centre of Excellence
For many in the finance department, the phrase “financial period close” brings with it visions of long days filled with time-consuming, cumbersome and stressful processes. Yet, despite the time devoted to it, this record-to-report process of accounts reconciliation, journal entries and financial reporting is essential for providing accurate information on business performance and ensuring compliance.
It doesn’t have to be so painful, however. Indeed, every CFO dreams of a faster close. Recent research shows why. In APQC’s General Accounting Open Standards Benchmarking survey, the bottom 25 percent of the 2,300 respondents said they need 10 or more calendar days to complete the monthly period close – the days between running the trial balance to completing the consolidated financial statements. In contrast, the top 25 percent of performers complete the monthly close in 4.8 days or less.