The close cycle has unique characteristics for every organization, but key to pruning the length of time spent on it is the practice of continuous improvement. Continuous improvement is defined as an ongoing effort to improve products, services, or processes. These efforts can seek “incremental” improvement over time or “breakthrough” improvement all at once. We recommend incremental improvement through a constant feedback loop that in turn drives efficiency, or the reduction and elimination of sub-optimal processes. Most organizations don’t have the time to spend on breakthrough improvement, so chipping away at it is best.
We are going to lay out some strategies you can apply to overhauling your current process. As your company grows, you can implement a consolidation system like Oracle’s Hyperion Financial Management (HFM) to automate many repetitive steps. We won’t go into detail as to why you want to speed up the monthly close cycle; suffice it to say, time is money.
Read on for six tips on trimming days off your consolidation process.