Related Topics:
			Business Research: Business, Finance Vendor Research: Adaptive Planning Business Objects Clarity Systems Cognos Epicor Exact Software - Longview Solutions Infor Intacct Lawson Microsoft Business Solutions Microsoft FRx NetSuite Oracle Oracle - Hyperion PrecisionPoint Software Sabrix Sage SAP Star Analytics
			Printer friendly version Email this article Send feedback to editor

Take
Does your company have the right software to manage your closing process? Our benchmark research shows that companies that use software dedicated to consolidation are able to close faster than companies that use their ERP systems or spreadsheets. This does not mean that every company must use a dedicated application. However, if your company uses ERP systems from multiple vendors, especially if you have many legal entities or complex corporate ownership structures, you probably will find it easier to manage the closing process and speed its completion with a dedicated tool. If your company is using desktop spreadsheets to manage the process, we recommend you find another way, since their use likely is slowing the process needlessly. While spreadsheets are “free,” the time they waste is not. This indirect cost will be found not only in the work of people in your organization but also the time spent by external auditors and other third parties checking these spreadsheets over and over.

Even if your organization does not manage the closing process itself using spreadsheets, it may be using them to support it. Our benchmark research “The Fast, Clean Close” shows that companies that use spreadsheets extensively in the closing process have far more data quality issues than those that limit their use. We recommend finding other ways of bringing together information and analyzing it. A decade ago it was difficult and costly, for example, to pass data directly from one system to another or to program recurring allocation routines into enterprise systems. Today it is far easier and much more cost-effective. Any program to accelerate closing must examine opportunities to use IT to address problems with bottlenecks, delays and errors.

Related Research Notes:
Software Drives a Fast, Clean Close
Research shows the right tools help improve results

Better Process Enables Faster Close
Research shows that process management produces results

Closing Faster Should Have Priority
Research shows some companies have made progress, but more is needed

The Effective CFO
For finance leaders, efficiency isn’t enough any more