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PKF Texas – The Entrepreneur’s Playbook™ – The Financial Close

by | Jul 26, 2008 | PKF Texas - The Entrepreneur's Playbook®

Note: Running Fridays in FromGregsHead.comis a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the Entrepreneur’s Playbook page of the PKF Texas website.

How quickly do you execute your financial close each month? Do you take 7 days? 10 days? Can you close in 5 days?

Recent research has confirmed an indication by many CFOs for closing more quickly, with a recognition that existing processes at most organizations already take too long. Demands are increasing for financial information more quickly, and a desire for more analysis of results, is close on its heels.

A variety of sources suggest that you should be able to close your accounting periods within 4-5 days of month, quarter, or year end. To start improving the time for your financial close, consider the following:

  1. Make sure your financial close is a well defined process, understood, and consistently applied.
  2. Understand the barriers of disparate systems and spreadsheets contributing to the delays.
  3. Move towards simplicity within people, process and technology that supports your close process. 

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