The Fast Close Toolkit

CHAPTER FORTYRoadmap: Benefits of the Fast Close

INTRODUCTION: THERE ARE NUMEROUS benefits to achieving a fast fiscal close, which will vary based on the perspective of the recipient. Those who will benefit from the results of a fast close include: company management, investors, auditors, and the accounting department. The benefits are significant, as listed below:

Benefits of the Fast Close

Quicker access to fiscal information: Company management generally feels that the primary benefit of the fast close is having access to fiscal information more quickly, allowing it to take rapid steps to improve a company's strategic and tactical position in the marketplace. Marketing tool: A company's marketing staff can use the rapid issuance of fiscal information to “spin” the company's openness to the investing public. This does not necessarily mean that the company will issue sterling fiscal results, only that it will issue results faster. Still, it implies some level of expertise on the part of the accounting department in processing transactions and compiling them into reports, and so may impart some level of comfort to investors in that regard. More time for financial analysis: Closing the books fast does not necessarily mean that one must issue financial statements sooner. An alternative is to spend additional time analyzing the preliminary financial statements in order to issue more complete notes alongside the fiscals at a later date. Improved processes and accurate results: ...