# How to Achieve a Shorter Financial Close Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-02-05 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Revolutionising Financial Close: The Power of Continuous Accounting Meta Description: Discover how savvy financial teams are utilising continuous accounting to save time, provide timely insights and streamline financial close processes. Learn URL: https://financedigest.com/achieve-shorter-financial-closehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/how-to-achieve-a-shorter-financial-close-1736839178669-compressed.jpg) _**Nicky Tozer**, VP of EMEA, Oracle NetSuite_ For many finance teams, the dreaded [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) close period means long days, time-consuming tasks, and cumbersome processes. Make no mistake – tasks like accounts reconciliation, journal entries and [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) reporting are necessities for achieving an accurate picture of business performance and ensuring compliance. But is there a [smarter way](https://www.financedigest.com/the-medical-tourism-market-is-estimated-to-substantiate-i-e-grow-at-a-handsome-rate-in-upcoming-years-the-present-day-scenario-implies-the-adoption-of-smarter-ways-to-do-business-as-such-digital.html "The Medical Tourism Market to get filtered through organic digitized growth") to go about it? It would appear that financial [teams](https://www.financedigest.com/finance-teams-using-ai-outperform-peers-as-demand-for-skills-grows.html "Finance Teams Using AI Outperform Peers as Demand for Skills Grows") are tackling the topic in different ways. According to [APQC’s General Accounting Open benchmarks survey](http://www.cfo.com/financial-reporting-2/2018/03/metric-month-cycle-time-monthly-close/), when it comes to time spent on [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) close there is quite a gap between the top and bottom performers. Of the 2,300 respondents surveyed, the bottom 25 percent required 10 or more calendar days between running the trial balance and completing consolidated [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) [statements](https://www.financedigest.com/uk-finance-minister-hunt-to-make-statement-at-1000-gmt-source.html "UK finance minister Hunt to make statement at 1000 GMT – source"). A shorter [financial close](https://www.financedigest.com/fast-track-financial-close.html "FAST-TRACK FINANCIAL CLOSE") period results in several benefits. For executives it means timelier access to [important data](https://www.financedigest.com/the-importance-of-data-analytics-for-success.html "The Importance of Data Analytics For Success "), which leads to better informed decision-making. For CFOs and finance teams it means more time to focus on more [value-added functions](http://www.netsuiteblogs.com/uk-cfos-finance-making-progress-into-more-strategic-roles-research-finds) such as analysis and insight. For example, reviewing the data and providing input into scaling operations up or down in response to [cash flow](https://www.financedigest.com/covestro-sees-lower-2023-profit-cash-flow-as-macro-challenges-prevail.html "Covestro sees lower 2023 profit, cash flow as macro challenges prevail") demands or changing market conditions, or how to reallocate resources in order to capitalise on an emerging opportunity. So, what is the secret to a fast and accurate financial close? Savvy financial teams are increasingly turning to [continuous accounting](https://www.financedigest.com/building-and-construction-to-continue-accounting-for-nearly-half-of-tower-cranes-sales-globally-fmi.html "Building and Construction to Continue Accounting for Nearly Half of Tower Cranes Sales Globally: FMI") to save time and provide more timely insights to the business. [Continuous accounting](https://www.financedigest.com/skin-lightening-products-remain-sought-after-among-women-who-continue-to-account-for-80-of-sales-study.html "Skin Lightening Products Remain Sought-after among Women, who Continue to Account for 80% of Sales: Study") involves an incremental distribution of [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) close activities throughout the reporting period. Tasks such as reconciliations are embedded in day-to-day activities throughout the month or quarter: this helps to eliminate last-minute demand. It also means quicker access to up-to-date [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) intelligence, which [leaves the entire business](https://www.financedigest.com/chinas-international-flight-suspensions-leave-travellers-stranded-hurt-businesses.html "China’s international flight suspensions leave travellers stranded, hurt businesses") better informed. With these benefits in mind, the question becomes: why aren’t all companies already [embracing continuous accounting](https://www.financedigest.com/how-young-founders-are-embracing-outsourced-accounting.html "How Young Founders Are Embracing Outsourced Accounting")? There are several conditions required before companies can hope to get started. To begin with, continuous [accounting](https://www.financedigest.com/metapraxis-launches-accountancy-training-course-accounting-intuition-in-partnership-with-cima.html) won’t work if different systems aren’t synced up. If a [company’s](https://www.financedigest.com/understanding-company-debt-finance.html "Understanding company debt finance") financial records aren’t speaking to their IT records, or if a team is working off of disconnected spreadsheets, then they will struggle to carry out as-you-go [accounting.](https://www.financedigest.com/metapraxis-launches-accountancy-training-course-accounting-intuition-in-partnership-with-cima.html) Many companies who are [successfully carrying out continuous accounting](https://www.financedigest.com/what-successful-accounting-looks-like-in-the-age-of-the-consumer.html "What successful accounting looks like in the age of the consumer") rely on a modern cloud-based financial and ERP (enterprise resource planning) system. Such [systems ensure an integrated and standardised overview](https://www.financedigest.com/sensor-based-glucose-measuring-systems-market-by-2028-with-technological-advancements-growth-of-industry-overview-and-dynamics-with-affecting-factors-2.html "Sensor Based Glucose Measuring Systems Market by 2028 With Technological Advancements, Growth Of Industry, Overview and Dynamics with Affecting Factors") across different functions. Users have access to a common general ledger, a common chart of accounts, as well as a single version of data for inventory, payroll, sales orders and customers. This offers companies the data [integrity and standardisation of processes that are essential to continuous](https://www.financedigest.com/money-and-technology-the-continued-integration-of-fintech-with-daily-lives.html "Money and technology – the continued integration of fintech with daily lives") accounting. ERP [systems also offer the attractive possibility of automating](https://www.financedigest.com/test-automation-systems-for-powertrain-dynamometer-market-to-reach-worth-of-us-1-20-bn-by-2031-tmr-insights.html "Test Automation Systems for Powertrain Dynamometer Market to reach worth of US$ 1.20 Bn by 2031, TMR Insights") certain functions. Tasks such as journal entries, account reconciliations, and variance [analysis can be completed by the system gradually throughout the reporting period](https://www.financedigest.com/according-to-the-recently-published-report-by-persistence-market-research-the-global-market-for-gene-expression-analysis-will-reflect-a-steady-growth-during-the-forecast-period-2017-2022-by-the-end.html "According to the recently-published report by Persistence Market Research, the global market for gene expression analysis will reflect a steady growth during the forecast period, 2017-2022. By the end of 2022"). This translates into further time-savings and even shorter financial close timeframes. Yet another advantage is the ability to more efficiently delegate tasks using the resource [planning functionality of the system](https://www.financedigest.com/hyperspectral-imaging-system-market-know-latest-trends-forecast-for-long-term-business-planning-up-to-2026.html "Hyperspectral Imaging System Market – Know Latest Trends & Forecast for Long-term Business Planning up to 2026"). As everyone is connected to the system, it is possible to assign tasks across the team throughout the [reporting period](https://www.financedigest.com/most-recent-development-report-on-centrifugal-chiller-market-to-witness-exponential-rise-in-revenue-share-during-the-forecast-period-2021-2031.html "Most Recent Development Report On Centrifugal Chiller Market To Witness Exponential Rise In Revenue Share During The Forecast Period (2021-2031)"). This is easily [managed thanks to a transparent overview of tasks attribution and progress](https://www.financedigest.com/geometric-progression-based-on-digitization-to-be-witnessed-by-reproductive-management-products-market.html "Geometric Progression based on Digitization to be witnessed by Reproductive Management Products Market"). For example, a typical financial close could last 5 days and consist of 25 [processes](https://www.financedigest.com/how-decentralized-finance-can-aid-in-the-acquisition-process.html "How Decentralized Finance can aid in the acquisition process"). In this case, 5 tasks could be assigned per day. [Managers can continue to check back in with the system](https://www.financedigest.com/traffic-management-systems-growing-at-a-cagr-of-22-5-for-2022-28.html "Traffic Management Systems growing at a CAGR of 22.5% for 2022 – 28") to follow up on which tasks have already been completed, and which remain outstanding. With this, gone are the [days when managers and staff are giving CFOs](https://www.financedigest.com/who-is-the-modern-day-cfo.html "WHO IS THE MODERN DAY CFO?") the answers they think he or she wants to hear. Moreover, the CFO knows who’s on target and where and how. The [CFO also has the ability to run KPIs on the close process identifying which individuals or locations are not completing their tasks on time](https://www.financedigest.com/deliveroos-financial-hot-potato-time-for-new-cfo-to-step-up-to-the-plate.html "Deliveroo’s Financial Hot Potato: Time for new CFO to step up to the plate") and reallocating resources appropriately. Increasing numbers of companies are realising the benefits that continuous accounting offers. In addition to the [time savings](https://www.financedigest.com/modernisation-of-insurance-technology-saves-invaluable-time-and-money.html "Modernisation of insurance technology saves invaluable time and money") themselves, companies are finding that they are able to access more up-to-date financial intelligence. This helps the entire [business make more informed decisions based on real-time](https://www.financedigest.com/the-role-of-invisible-real-time-payments-in-fueling-the-future-of-cx-in-business.html "The role of invisible, real-time payments in fueling the future of CX in business") data. And for those who have already made the switch to connected ERP systems, the path to continuous accounting will be a simple and straightforward one. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---