Elements of the Business Case
There’s longstanding agreement that it’s important for a company to close its books as quickly as possible: Doing so allows it to accelerate financial and management reporting and gives it more time to prepare analyses. Companies that close faster have more timely financial and managerial information. Our Office of Finance benchmark research found that 75 percent of companies that close their books within one or two days have timely information, compared to 38 percent that take three to six business days and just ten percent that take more than two weeks.
Inconsistent process execution is a key factor contributing to a close that is too lengthy. It’s also a situation that increases the risk of errors and misstatements. Our research supports our view that using dedicated software to automate all aspects of the close can alleviate these issues and ensure a consistent, streamlined and readily auditable process.