There is a saying, “Accounting looks backward, and Finance looks forward.” Predictive analysis, forecasting, and planning always seem to be at the forefront of financial system initiatives; sometimes at the expense of improvements to the back office close process or systems. But, without reliable actuals, downstream forecasting is less meaningful. USGAAP, IFRS, and statutory reporting formats and content are mandated, controls required, and essentially considered a necessary evil each reporting period. Even as a necessary evil, there is significant value in how the preparation of the actuals provides the support and foundation for the look ahead and forward-looking analytics.
A solid close process, system, and team provides value to an organization that is significant and should be appreciated beyond the “just a cost-center” mentality. It is the backbone of providing insight, visibility, confidence in the health of the organization, and the direction of where it is headed. Now, add an acquisition or divestiture and this throws a monkey-wrench into an already taxed close process with no room for margin of
error, delays, or inaccuracies in the best of situations.
The Value of a Solid Close Process
What You'll Learn:
Why timely feedback is critical
The right tool for the job