The Fast Close Toolkit

CHAPTER FOURGoverning the Fiscal Close Process

INTRODUCTION: ACCORDING TO THE American Productivity & Quality Center (APQC), good governance goes beyond standard data definitions The focus should be on creating systems for accountability that improve data quality and consistency and reduce the risk of regulatory repercussions. No matter where data comes from, vendor invoices, emails, the addition of new customer accounts, or other sources, should align with your organization's technology and finance processes. Good data governance includes procedures for data accountability, confidence in data reliability, and the reduction of unnecessary tasks that decrease efficiency.

In general, the fiscal close process should have a defined governance process to ensure that roles and responsibilities are defined and that there is consistency in the process. A well-governed process can help reduce “fire drills” during the process and establishes the structure for scrutiny, accuracy, and continuous improvement.

Effective finance organizations address these issues by establishing a ledger close governance framework. Central components of a fiscal close governance process include the following best practices.

BEST PRACTICE 4: IMPLEMENT A FISCAL CLOSE GOVERNANCE PROCESS

Introduction: A well-defined governance process for the fiscal close also reduces the risk of fiscal statement fraud, error, and management overrides resulting in fiscal restatements. Many of the tools contained in this toolkit ...