Close Process Optimization

Best-practice close timelines vary by company size and complexity, but most well-run companies aim to have preliminary financials available within 5 to 7 business days after month-end and final financials within 10 business days. Many companies that have optimized their close process achieve preliminary results within 3 to 5 days. If your close regularly takes longer than 10 to 15 business days, there are almost certainly specific bottlenecks that can be addressed.

The most common causes are: unclear task ownership that creates waiting and hand-off delays, reconciliations that are not started until after the close rather than throughout the month, journal entry backlogs from tasks that accumulate rather than being processed regularly, subledger issues that require manual cleanup at close, and insufficient automation of routine tasks. Most of these can be addressed with process redesign and better task management rather than additional headcount.

We map the current close process in detail — every task, the person responsible, the typical completion time, and the dependencies that create sequencing constraints. We then identify the critical path — the sequence of dependent tasks that determines the earliest possible close date — and focus improvement efforts on the tasks that sit on or near that path. Tasks that take a long time but are not on the critical path are less urgent to address than shorter tasks that create bottlenecks for everything downstream.

Yes, significantly. External auditors spend time waiting for client-prepared schedules and reconciliations, resolving discrepancies between the general ledger and supporting documentation, and addressing items that are unclear or incomplete. A well-organized close process with complete, accurate reconciliations and clean supporting documentation reduces the audit team’s time substantially. Many companies find that close process improvements pay for themselves in reduced audit fees within one to two years.

Multi-entity structures add complexity to the close — intercompany transactions need to be reconciled and eliminated, each entity has its own subledger and general ledger, and the consolidation process adds additional steps after the individual entity closes are complete. We design close processes that handle multi-entity complexity efficiently, with clear sequencing between entity-level closes and the consolidation, and standardized intercompany procedures that minimize reconciliation effort.

We produce a close calendar that shows every task, its scheduled completion date, and its owner. We also produce process documentation for each significant close task — what it involves, how it is performed, and what the quality standard is. This documentation serves as a reference guide for the team and a training resource for new staff. It also supports the external audit by giving auditors clear documentation of the close process they are relying on.

Yes. We regularly work with foreign private issuers and companies with cross-border structures, including IFRS reporting, US GAAP reconciliations, and multi-entity consolidations for companies with domestic and international subsidiaries.

In most cases, we can begin within a few days of finalizing our agreement. Our onboarding process is straightforward — a brief discovery session, a clear statement of work, and secure access setup. We do not have lengthy intake procedures that delay the start of actual work.