Fast Close: A Guide to Closing the Books Quickly

✍ Scribed by Steven M. Bragg

• Publisher: John Wiley & Sons
• Year: 2005
• Tongue: English
• Leaves: 238
• Category: Library

✦ Synopsis

Written for controllers, CFOs, accounting managers, and business managers, Fast Close incorporates Steven Bragg’s own personally tested guidelines to help professionals speed up the closing process, especially in response to Sarbanes-Oxley’s more time-sensitive requirements. Bragg outlines numerous key improvements that, when gradually implemented together, are guaranteed to shrink the closing process down to as little as one day. Chock-full of helpful flowcharts and checklists to help readers prevent delays and bring accounting department closing procedures up to date, Fast Close explores specific instructions for closing faster, common areas of delay and how to overcome them, required controls to keep financials accurate despite the fast close, and much more. Create financial statements faster . . . much faster . . . with the expert guidance found in Steven Bragg’s Fast Close .

✦ Table of Contents

FAST CLOSE: A Guide to Closing the Books Quickly......Page 5
About the Author......Page 9
Contents......Page 11
Preface......Page 17
DIFFERENT TYPES OF FAST CLOSE......Page 21
BENEFITS OF THE FAST CLOSE......Page 22
LEGAL ISSUES IMPACTING THE FAST CLOSE......Page 23
STEPS TO ACHIEVE A FAST CLOSE......Page 24
SUMMARY......Page 27
TRADITIONAL CLOSING PROCESS: BASIC......Page 29
ADDITIONAL CLOSING TASKS FOR THE MULTIDIVISION COMPANY......Page 34
ADDITIONAL CLOSING TASKS FOR THE MULTINATIONAL COMPANY......Page 35
PROBLEMS WITH THE CLOSING PROCESS......Page 36
ENDNOTE......Page 41
STEPS IN THE PROCESS REVIEW......Page 43
BILLING PROCESS REVIEW......Page 47
CASH PROCESS REVIEW......Page 50
FINAL CLOSING PROCESS REVIEW......Page 51
ENDNOTE......Page 55
ALTERING THE CLOSING MINDSET......Page 57
COMPLETE THE BANK RECONCILIATION EVERY DAY......Page 58
UPDATE THE INVENTORY OBSOLESCENCE RESERVE......Page 59
CALCULATE OVERHEAD ALLOCATION BASES......Page 60
CONDUCT A PRELIMINARY COMPARISON OF THE SHIPPING LOG TO INVOICES ISSUED......Page 61
UPDATE THE BAD DEBT RESERVE......Page 62
ACCRUE INTEREST EXPENSE......Page 63
DETERMINE FLEXIBLE SPENDING ACCOUNT FUNDING......Page 64
ACCRUE UNUSED VACATION TIME......Page 65
ACCRUE TRAVEL EXPENSES......Page 66
CALCULATE DEPRECIATION......Page 67
COMPILE PRELIMINARY COMMISSIONS......Page 69
COMPLETE SELECTED FINANCIAL REPORTS IN ADVANCE......Page 70
DEFERRED CLOSING ACTIVITIES......Page 71
SUMMARY......Page 74
ALTER THE MODE OF REPORT DELIVERY......Page 77
STANDARDIZE REPORTS......Page 78
ELIMINATE COST REPORTING FROM THE REPORTING PACKAGE......Page 79
SEPARATE METRICS FROM THE FINANCIAL REPORTING PACKAGE......Page 80
SUMMARY......Page 81
ELIMINATE IMMATERIAL JOURNAL ENTRIES......Page 83
STANDARDIZE JOURNAL ENTRIES......Page 84
CONVERT TO RECURRING JOURNAL ENTRIES......Page 85
CENTRALIZE USE OF JOURNAL ENTRIES......Page 86
USE JOURNAL ENTRIES TO ACCRUE EXPENSES DELAYING THE CLOSE......Page 87
DEFINE ACCOUNTS......Page 88
STANDARDIZE THE CHART OF ACCOUNTS......Page 89
AUTOMATE ELIMINATIONS OF INTERCOMPANY TRANSACTIONS......Page 90
SUMMARY......Page 92
IMPACT OF STANDARDIZATION ON THE CLOSING PROCESS......Page 93
IMPACT OF CENTRALIZATION ON A MULTILOCATION ACCOUNTING DEPARTMENT......Page 95
IMPACT OF CENTRALIZATION ON A SINGLE-LOCATION ACCOUNTING DEPARTMENT......Page 98
INCORPORATING STANDARDIZATION AND CENTRALIZATION INTO ACQUISITION ACTIVITIES......Page 99
SUMMARY......Page 100
CREATE AN INVENTORY TRACKING SYSTEM......Page 103
IMPLEMENT CYCLE COUNTING......Page 108
REDUCE THE AMOUNT OF INVENTORY......Page 112
PROPERLY RECORD THE LOWER OF COST OR MARKET RULE......Page 122
REVIEWING OBSOLETE INVENTORY......Page 123
PREVENTING OBSOLETE INVENTORY......Page 125
SUMMARY......Page 128
ENDNOTES......Page 130
BILL RECURRING INVOICES IN THE PRECEDING MONTH......Page 131
COMPUTERIZE THE SHIPPING LOG......Page 132
ELIMINATE REBILLABLE EXPENSE PROCESSING FROM THE CORE CLOSING PERIOD......Page 133
ELIMINATE MONTH-END STATEMENTS......Page 134
PRINT INVOICES EVERY DAY......Page 135
TRANSMIT TRANSACTIONS VIA ELECTRONIC DATA INTERCHANGE......Page 136
ENDNOTE......Page 138
AUTOMATICALLY CALCULATE COMMISSIONS IN THE COMPUTER SYSTEM......Page 139
SIMPLIFY THE COMMISSION STRUCTURE......Page 140
INSTALL INCENTIVE COMPENSATION MANAGEMENT SOFTWARE......Page 141
POST COMMISSION PAYMENTS ON THE COMPANY INTRANET......Page 142
AVOID ADJUSTING PRELIMINARY COMMISSION ACCRUAL CALCULATIONS......Page 143
USE A COMPUTERIZED TIME CLOCK......Page 144
USE A WEB-BASED TIMEKEEPING SYSTEM......Page 145
AUTOMATE VACATION ACCRUALS......Page 146
CAP THE AMOUNT OF VACATION TIME TO BE CARRIED FORWARD......Page 148
ENDNOTE......Page 149
AUTOMATE THE MONTH-END CUTOFF......Page 151
PAY BASED ON RECEIVING APPROVAL ONLY......Page 152
AUTOMATE THREE-WAY MATCHING......Page 155
REDUCE REQUIRED APPROVALS......Page 156
USE NEGATIVE ASSURANCE FOR INVOICE APPROVALS......Page 158
USE PROCUREMENT CARDS......Page 159
HAVE SUPPLIERS INCLUDE THEIR SUPPLIER NUMBERS ON INVOICES......Page 165
RECEIVE BILLINGS THROUGH ELECTRONIC DATA INTERCHANGE......Page 166
REQUEST THAT SUPPLIERS ENTER INVOICES THROUGH A WEB SITE......Page 167
AUDIT EXPENSE REPORTS......Page 168
AUTOMATE EXPENSE REPORTING......Page 170
LINK CORPORATE TRAVEL POLICIES TO AN AUTOMATED EXPENSE REPORTING SYSTEM......Page 172
ISSUE A STANDARD ACCOUNT CODE LIST......Page 173
LINK SUPPLIER REQUESTS TO THE ACCOUNTS PAYABLE DATABASE......Page 174
AUTOMATE PAYMENTS FOR REPETITIVE PROCESSING......Page 176
ELIMINATE MANUAL CHECKS......Page 177
USE A SIGNATURE STAMP......Page 178
IGNORE SUPPLIER INVOICES AND PAY FROM STATEMENTS......Page 179
SUMMARY......Page 180
ENDNOTE......Page 181
ACCESS BANK ACCOUNT INFORMATION ON THE INTERNET......Page 183
AVOID DELAYS IN CHECK POSTING......Page 184
COLLECT RECEIVABLES THROUGH LOCKBOXES......Page 185
INSTALL A LOCKBOX TRUNCATION SYSTEM......Page 187
CONSOLIDATE BANK ACCOUNTS......Page 188
ENDNOTE......Page 190
PRINCIPLES OF FAST CLOSE AUTOMATION......Page 191
IMPLEMENT MINOR PROGRAMMING CHANGES ON AN ONGOING BASIS......Page 192
AUTOMATE GENERAL LEDGER INTERFACES......Page 193
INSTALL A WEB-BASED TIMEKEEPING SYSTEM......Page 194
INSTALL A WORKFLOW MANAGEMENT SYSTEM......Page 195
INSTALL CONSOLIDATION SOFTWARE......Page 197
INSTALL A DATA WAREHOUSE......Page 198
INSTALL AN ENTERPRISE RESOURCES PLANNING SYSTEM......Page 199
SUMMARY......Page 200
ONGOING IMPROVEMENT PROCESS......Page 203
IMPROVEMENT MEASUREMENTS......Page 206
SUMMARY......Page 207
PRIOR TO MONTH-END......Page 209
DURING CORE CLOSING PERIOD......Page 210
DEFERRED BEYOND CORE CLOSING PERIOD......Page 211
Appendix B Fast Close Policies and Procedures*......Page 213
Appendix C Soft Close Checklist......Page 225
DEFERRED BEYOND CORE CLOSING PERIOD......Page 226
DELETED ACTIVITIES......Page 227
Appendix D Year-End Close Checklist......Page 229
Index......Page 233

✦ Subjects

Финансово-экономические дисциплины;Бухгалтерский учет;