Identifying Common Gaps in the Process

"The number of days it takes it to close the company’s books – that is, the number of days into the following month required to completed all the activities associated with the financial close – is a reliable way to gauge the effectiveness of a finance department’s management. Companies that complete their monthly or quarterly accounting close within a business week demonstrate a level of effectiveness that those that take longer do not. However, our recent benchmark research into the practices of the Office of Finance and the challenges it faces finds that only a few more than half (53%) of companies complete their monthly close within six business days and even fewer – just 40 percent – do so for their quarterly close."