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.