When to Upgrade Financial Consolidation Software
White Paper by Ventana Research
The Need for a Faster Close
Most companies need to accelerate their accounting close. Our recent benchmark research found that, on average, companies take longer to complete this process than they did five years ago: 8.0 days vs. 7.5 days for the quarterly close and 7.2 days vs. 6.5 days for the monthly one. Only 38 percent of research participants reported they complete their quarterly close within five or six days, down from 47 percent previously.
We have identified three key factors that determine how quickly a company close.
- One is how well the process is designed and executed.
- The second is how well the company manages data.
- Both of these are connected to the third: the software used to support the closing process.
Moreover, how quickly a company closes its books affects its “extended close,” the full span of
activities that continue into internal financial and managerial reporting and external reporting and