[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”0px|0px|0px|0px” global_colors_info=”{}”][et_pb_row module_class=”enbref” _builder_version=”4.27.5″ custom_margin=”||5%||false|false” custom_padding=”0px|||||” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text module_class=”enbref-content” _builder_version=”4.27.9″ custom_padding=”||12%||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n
In a nutshell<\/strong><\/p>\n Fast Close is not about reducing controls to close the books faster. The goal is to better position them within the accounting cycle: anticipate those that can be done in advance, automate repetitive controls, and focus the closing process on the checks that truly require waiting until the end of the period. <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.9″ custom_padding=”||5%||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n The financial close is often experienced as a sprint: just a few days to review, approve, and produce all the deliverables. This fast-paced schedule sometimes leaves little time to address issues with a clear head and truly analyze the results. <\/p>\n The Fast Close<\/strong><\/a> offers a different perspective: what if the problem isn\u2019t the closing process itself, but rather the way controls are concentrated there?<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ custom_padding=”||||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ custom_margin=”||3%||false|false” custom_padding=”||||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n Reconciliations, consistency checks, account verification, validation of journal entries, variance analysis\u2026 Controls play a vital role in any financial closing<\/strong> process.<\/p>\n They help ensure the quality of the data produced and secure the accounts before they are validated.<\/p>\n But their placement in the closing schedule raises an important question.<\/p>\n When numerous audits are conducted within a short time frame, they add to the other tasks that must be completed at the end of the period: closing entries, adjustments, consolidation, validation, and the preparation of reports.<\/p>\n So the problem isn’t the existence of these checks. They are necessary. <\/p>\n The question is rather: Do they all have to wait until closing?<\/strong><\/p>\n In a Fast Close<\/strong> approach, seeking to answer this question helps shift the focus of the discussion. The goal is no longer simply to complete the same work more quickly, but to identify what actually needs to be done by the end of the period and what can be reviewed, prepared, or finalized earlier. <\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ custom_padding=”||5%||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n Talking about<\/strong> \u201c year-end closing procedures<\/strong> \u201d as if they were a homogeneous group can be misleading.<\/p>\n Some checks necessarily depend on information that is only available at the end of the period. Others, on the other hand, are based on data that is already available during the month and can be performed more regularly. <\/p>\n Consequently, the constraints vary depending on the nature of the audit, the availability of data, the level of risk, and the processes involved.<\/p>\n A bank reconciliation, an interface consistency check, an account reconciliation, or the approval of a one-time journal entry do not necessarily follow the same timeline.<\/p>\n That is why a Fast Close approach should not seek to systematically move all controls to an earlier stage in the process.<\/p>\n First, it must allow for their segmentation<\/strong>.<\/p>\n Which controls must remain in place at year-end? This analysis makes it possible to focus end-of-period efforts on the operations for which this timing is truly necessary.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”3_5,2_5″ make_equal=”on” admin_label=”Image + Text Block” module_class=”bloc_2_colonnes” _builder_version=”4.27.5″ _module_preset=”default” background_color=”#a4d0fa” custom_margin=”||8%||false|true” custom_margin_tablet=”||10%||false|true” custom_margin_phone=”||15%||false|true” custom_margin_last_edited=”on|phone” custom_padding=”50px|50px|50px|50px|true|true” animation_style=”fade” border_radii=”on|23px|23px|23px|23px” locked=”off” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”3_5″ module_class=”colonne_texte” _builder_version=”4.25.0″ _module_preset=”default” custom_padding=”||||false|false” custom_padding_tablet=”||||false|false” custom_padding_phone=”||||false|false” custom_padding_last_edited=”on|phone” global_colors_info=”{}”][et_pb_text admin_label=”Titre – H2″ module_class=”Titre_40″ _builder_version=”4.27.9″ _module_preset=”default” custom_margin=”||10px||false|false” locked=”off” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Texte” module_class=”TexteCorps” _builder_version=”4.27.9″ _module_preset=”default” custom_margin=”0px||||false|false” animation_style=”fade” animation_direction=”left” global_colors_info=”{}”]<\/p>\n Our experts will guide you through the restructuring of your financial close processes, from the initial audit to the implementation of solutions tailored to your organization.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/www.sqorus.com\/en\/contact\/” button_text=”Contact SQORUS” button_alignment=”left” module_class=”Bouton fond_blanc” _builder_version=”4.27.9″ _module_preset=”default” custom_button=”on” button_text_color=”#f36245″ button_border_width=”1px” button_border_color=”#f36245″ custom_margin=”30px||||false|false” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][et_pb_column type=”2_5″ module_class=”vertical-align” _builder_version=”4.25.0″ _module_preset=”default” background_enable_color=”off” background_enable_image=”off” background_size=”custom” background_image_width=”19%” background_position=”top_right” background_vertical_offset=”7%” custom_padding=”||2rem||false|false” global_colors_info=”{}”][et_pb_icon font_icon=”||fa||900″ icon_color=”#a56401″ icon_width=”20px” icon_width_tablet=”30px” icon_width_phone=”14px” icon_width_last_edited=”on|desktop” admin_label=”Icon haut” _builder_version=”4.27.4″ _module_preset=”default” background_color=”#fab74f” positioning=”absolute” position_origin_a=”top_right” position_origin_r=”top_right” vertical_offset=”30px” horizontal_offset=”-12px” z_index=”1″ vertical_offset_tablet=”30px” vertical_offset_phone=”20px” vertical_offset_last_edited=”on|phone” horizontal_offset_tablet=”55px” horizontal_offset_phone=”0px” horizontal_offset_last_edited=”on|phone” position_origin_a_tablet=”top_right” position_origin_a_phone=”top_right” position_origin_a_last_edited=”on|tablet” position_origin_f_tablet=”” position_origin_f_phone=”” position_origin_f_last_edited=”on|tablet” position_origin_r_tablet=”top_right” position_origin_r_phone=”top_right” position_origin_r_last_edited=”on|tablet” custom_padding=”25px|24px|25px|24px|true|true” custom_padding_tablet=”2rem|2rem|2rem|2rem|true|true” custom_padding_phone=”16px|15px|16px|15px|true|true” custom_padding_last_edited=”on|phone” positioning_tablet=”absolute” positioning_phone=”absolute” positioning_last_edited=”on|tablet” border_radii=”on|200px|200px|200px|200px” locked=”off” global_colors_info=”{}”][\/et_pb_icon][et_pb_image src=”https:\/\/www.sqorus.com\/wp-content\/uploads\/2024\/05\/Parcours-Votre-evolution-chez-SQORUS-1.png” alt=”SQORUS logo” title_text=”SQORUS logo” align=”center” align_tablet=”center” align_phone=”center” align_last_edited=”on|tablet” disabled_on=”off|off|off” module_class=”image_fond” _builder_version=”4.27.4″ _module_preset=”default” background_enable_image=”off” positioning=”relative” width_tablet=”80%” width_phone=”80%” width_last_edited=”on|phone” animation_style=”slide” animation_direction=”right” animation_duration=”2000ms” animation_intensity_slide=”20%” border_radii=”on|300px|300px|300px|300px” border_width_all=”10px” border_color_all=”#d9e0e5″ global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ custom_padding=”0px|||||” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.9″ custom_padding=”||5%||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n The project timeline is often structured around a sequence of interdependent tasks.<\/p>\n Data must be available before it can be verified. A verification must be completed before an adjustment can be made. That adjustment may, in turn, determine whether validation or consolidation can take place. <\/p>\n In this context, a delay early in the process can have a ripple effect on subsequent steps.<\/p>\n When multiple checks are scheduled late, teams also have less time to analyze and correct the detected anomalies.<\/p>\n The challenge, therefore, does not stem solely from the volume of inspections that need to be conducted.<\/p>\n It also stems from their role in the process<\/strong>, their dependencies, and the time allotted to the teams to handle exceptions.<\/p>\n Reduce the closing deadlines<\/strong><\/a> therefore requires looking not only at the duration of each task, but also at its place in the schedule and the activities it depends on.<\/p>\n One possible solution would be to move as many inspections as possible to before closing time.<\/p>\n But this approach, too, has its limitations.<\/p>\n Moving a task from Day 1 to Day -2 is not necessarily an optimization if the data available on Day -2 is not sufficiently reliable or if the check must then be repeated.<\/p>\n Anticipation is valuable only when the conditions necessary to carry out the inspection are met.<\/p>\n In particular, it involves asking ourselves the following questions:<\/p>\n Fast Close, therefore, does not involve artificially expediting all tasks.<\/p>\n It involves rethinking their placement within the accounting cycle<\/strong>.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ custom_padding=”||||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n For certain activities, monitoring can be gradually integrated into day-to-day operations.<\/p>\n Rather than waiting until the close to identify an anomaly, the goal is to detect it as soon as it occurs\u2014or early enough to prevent it from becoming a closing issue.<\/p>\n This approach may apply, in particular, to certain reconciliations, consistency checks, recurring transactions, or variance analyses. It helps gradually reduce the number of anomalies detected in recent days. <\/p>\n Of course, the closing process retains its own checks and validations. The goal is not to eliminate them. <\/p>\n Rather, the goal is to ensure that the financial statement closing is no longer the first point at which the quality of financial information is actually verified.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ custom_margin=”||5%||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\n This approach is partly consistent with the principles of continuous accounting<\/strong><\/a>.<\/p>\n The approach involves incorporating more accounting activities and controls into the day-to-day cycle rather than systematically concentrating them at the end of the month.<\/p>\n For certain accounts or processes, reconciliations may, for example, be performed more frequently. This allows discrepancies to be identified and analyzed before the close of the period. <\/p>\n However, continuous accounting alone does not provide a solution to all the challenges of Fast Close.<\/p>\n The ability to perform continuous monitoring depends, in particular, on the nature of the data, the organization, the processes, the level of automation, and the specific constraints of each company.<\/p>\n It is therefore a tool to be integrated into a broader approach<\/strong>, rather than a model to be applied uniformly to all processes.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ custom_padding=”||5%||false|false” inline_fonts=”Roboto” global_colors_info=”{}”]<\/p>\nRethinking the Role of Controls in the Financial Closing Process<\/h2>\n
Test sooner or test faster?<\/h3>\n
Not all controls are subject to the same constraints<\/h3>\n
What inspections can be conducted while the vessel is underway?
Which ones can be automated?
Which ones should continue to be analyzed by humans?<\/p>\nWhere should you start when restructuring your month-end closing controls?<\/h2>\n
When the inspection schedule adds to the rush<\/h3>\n
Anticipating does not mean shifting the burden<\/h3>\n
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Ways to Better Position Controls<\/h2>\n
From end-of-period checks to process-integrated checks<\/h3>\n
The Role of Continuous Accounting: A Tool, Not an End in Itself<\/h3>\n
Automating checks: yes, but which ones?<\/h3>\n