The Fast Close, Part 5 (#20)

In this episode, we discuss how issuing a comprehensive financial statement package prolongs the time required to close the books. A better approach is to use a two-stage release of information, where the core financials are issued at once and everything else is issued later. Key points discussed are:

  • Use the accounting software’s report writer to develop reports that will be issued more than once.

  • Exclude operational information from the financial statements, since gathering this information can be a slow process and the information collected from other parties may be incorrect.

  • Release extra information in a separate report, preferably after the core financials have been released. Or, issue operational information once a week, thereby keeping it entirely away from the financial statements.

Related Courses

Closing the Books
The Soft Close
The Year-end Close