Blood, sweat and tears
Less than 7 percent of participants is of the opinion that the close process does not give time pressure. 28 percent states to need little to no last-minute changes. If we look at these figures the other way around, it becomes apparent that the great majority of finance departments are under a lot of stress to try and finish everything in time and to undertake the necessary adjustments. What is more, despite all the time and effort, 40 percent of respondents still face many surprises. What do companies need to do to make the close process more efficient?
Make it an instrument for business operations
When you close every month and you still face surprises, then it is likely that the close did not unearth everything that could have been discovered. Another possibility is that the close took so much time that risks were discovered when it was already too late. 70 percent of the participants state that there is simply no time for analysis. That shows that finance departments spend the majority of their time on the financial close itself. In this case, the close does not have much use, because it lags behind on current affairs and loses momentum to be used as an instrument for business operations. Companies need to scrutinize their own close process and stop treating it as part of compliance.