Accelerating time to close has not traditionally been a key focus for finance and accounting executives. But now that companies of all sizes across all industries (including nonprofits) are looking for a competitive advantage, every process is ripe for improvement. And thanks to new approaches and new capabilities, time to close has shrunk significantly.
A recent report from PricewaterhouseCoopers LLP reveals the average time to close in 2017 is 4.5 days for companies with a median revenue of 2.5 billion. That is down from an average time of 6 days in 2009.
The advantages of closing faster are many and often overlooked. The sooner that monthly and quarterly reports are distributed to different stakeholders, the sooner they can begin informing strategy and decision making. And when less time is spent compiling reports, more time can be spent searching for errors and conducting in-depth analysis.
Period-end reporting is an essential but inefficient process. Making it as short as possible allows companies to focus forward and use resources as productively as possible.
The reason time to close has fallen so much in recent years is due entirely to technology. The sort of time and labor-intensive tasks that used to characterize the reporting process can now be automated and expedited. And thanks to smarter approaches to data management, reporting is much less of a patchwork process than it used to be.
Not only have the capabilities of these technologies advanced, but the accessibility has as well. It's now possible for midsized companies without an extensive technology budget to implement enterprise systems for accounting and finance. And once they are in place, the time to close naturally gets shorter while the accounting department functions more effectively overall.
Sage Intacct is a best-in-class ERP designed with the evolving needs of accounting and finance departments in mind. The various features and functions provide exactly the kind of data depth and flexibility it takes to close the books faster. Plus, it gives users more control over reporting, maximizing its strategic potential.
Streamlining reporting is not the only place where Sage Intacct excels. It also empowers accounting departments to take control of regulatory compliance, communicate/collaborate more organically, eliminate errors and oversights, and perform sophisticated analytics. This solution provides a systematic upgrade department-wide. By the time the period end arrives, the team is eager to run the numbers.
The team at AcctTwo can help you maximize the impact of Sage Intacct. Contact our experts to learn more about this intuitive and in-depth financial management system.