The Fast Close Toolkit

CHAPTER TWENTY FOURSample Policies for the Corporate Close and Consolidation Process

POLICY 4: FISCAL CLOSE AND CONSOLIDATION PROCESS

Introduction: This policy provides guidelines for the monthly, quarterly, and year-end fiscal statement close process, including key tasks and responsibilities, and applies to the fiscal statement close process. This policy is focused on the tasks and responsibilities of the general ledger (GL) and financial reporting departments but also includes a discussion of required inputs from other corporate departments as well as finance and accounting personnel.

The fiscal close shall be designed to provide reasonable assurance that the fiscal records of the company include all material transactions and such transactions are properly recorded in accordance with generally accepted accounting principles (GAAP). Additionally, such transactions will be reported on in a time frame that is adequate to provide timely and relevant information for both internal management purposes and to meet Securities and Exchange Commission (SEC) reporting deadlines.

Fiscal Close Schedules

The applicable accounting department shall maintain a detail listing of tasks to be completed by the general ledger accounting manager and accounts receivable manager during each monthly, quarterly, and year-end close cycle. The schedule shall be of sufficient detail to describe critical tasks.

The schedule will change as changes in the business or other circumstances dictate.

1. For example, ...