Assessing Process & Controls to Expedite Financial Close Cycle
A software Company working with some of the world’s largest financial institutions had outgrown its existing systems as a result of significant year-on-year growth. With annual turnover of $70m, the Company had recently obtained financing from an institutional investor in order to fund its continued expansion. Throughout the due diligence process severe deficiencies were uncovered within the finance function – it had significantly outgrown its existing ERP system, QuickBooks, and was taking over 45 days to produce consolidated financial statements following month-end. The Company had requested Accordion’s assistance in transforming the finance function.
Accounting Process Improvement
Process & Controls Implementation
- Worked with constituents across the organization to gain an understanding of the business and to create detailed documentation of the core accounting cycles (order-to-cash, procure-to-pay and record-to-report).
- Executed process narratives and process-flow diagrams, as well as identifying any risks and control gaps and suggesting methods for remediation.
- Leveraged the knowledge gained during the review of company processes and controls to work side-by-side with the group accounting function to accelerate the month-end close.
- Developed the following tools to assist the Company in further accelerating the close process:
- Month-end close checklists & timeline.
- Hard-close dates for accounts receivable and accounts payable.
- Materiality thresholds for Prepaid Expenses, Fixed Assets and Overall Reporting.
- Accrual checklists and methods for implementing month-end accruals
- Created a detailed roadmap for the Company to implement improvement initiatives.
- Executed on several short-term initiatives, including establishing updated and uniform policies and procedures globally to the extent possible within the designated timeframe.
With our assistance, the Company was able to reduce their days to close by two-thirds – down to 15 business days – with a plan of action to further streamline to 10 over the next few months. The extra bandwidth created has enabled the finance function to focus on further improvement initiatives – including an upcoming ERP implementation – and assist management with their decision-making.