The Master Guide to Controllers' Best Practices, 2nd Edition

CHAPTER 14.FINANCIAL CLOSE PROCESSES AND PROCEDURES

Controllers often find themselves in the eye of the hurricane when both internal and external reporting requirements need to be fulfilled. Timely, accurate, and consistent data is always of critical importance. That’s because operational and strategic decisions are based upon it—and precise planning depends upon it.

Statutory, regulatory, and compliance requirements add yet another layer of complexity. Global organizations are required to support reporting with multiple accounting standards, and new legislation requires new systems. Investors and shareholders expect fast and easy access to the data created by current business activities.

Regardless of company size or industry, all successful financial close processes require excellent communication, careful documentation, and a flexible and responsive organization.

To accomplish this fast and easy access to information, finance must optimize every part of the close process. The goal is to centralize, standardize, and automate. Controllers need to implement tools that will improve efficiency, such as scheduling tools that monitor batch jobs that run on the ERP system.

The challenge is, that while there is a great deal of technology out there, none of the financial close software is “plug and play.” Everyone’s processes are different. Controllers need to configure the software to meet the organization’s needs. That’s why it’s so important to clearly understand and measure all the ...