Close the Books Survey Results – Does Your Close Make The Grade? – How long does it take for your team to close the books at the end of the month? Quarter? Year?
If your close takes longer than best practices recommend, be aware that there is a correlation between the time spent closing the books and accounting software solutions.
Let’s look at the results from the 2018 ‘Close the Books Barometer Survey.’ There were over 762 participants in the survey, using a variety of general ledger solutions, from diverse industry segments.
What’s slowing down your close?
It is a generally accepted best practice to close in a week or less. The survey analysis states, “The greatest influence to length of close was the solution that was used. While it would seem logical that more complex businesses would be on more sophisticated solutions, that correlation wasn’t demonstrated in the responses.”
What that means is that accounting software matters. A lot. And, the analysis reflects what we see in the field: businesses often are trying to operate using accounting solutions that are simply not a good fit for them anymore – systems that should be replaced with something more appropriate for their business needs.
Does your close make the grade?
C – Give yourself a “C” is your close takes more than three weeks, requires 11 or more imports, and 11 or more manual consolidations are needed. Your action item: Begin looking for alternative solution immediately.
B – Are you able to close within one to three weeks? If so, give yourself a “B” if you are keeping the number of imports between six and 10, and five to 10 manual consolidations for business entities. Your action items: Look for opportunities to integrate or automate you current solution. Or evaluate alternatives.
A – Pat yourself on the back and give yourself an “A” if you are able to close the books in a week or less. Your imports are limited to the one to five range and you’re entities are set up for automated consolidation so whether you have 8 or 80 entities, you’ll still be able to close in less than a week.
Express Information Systems can help you raise those “Bs” and “Cs” and enjoy faster closes as well as dozens of other benefit with modern, cloud-based Sage Intacct. Contact us for a quick consultation.
And don’t forget to download the free resource, “Close the Books” Survey results.