Summary

June 16, 2005 - Ventana Research has just completed a study of how companies handle financial reporting and consolidation. Nearly two-thirds of the respondents from corporations with more than 1,000 employees or $100 million in annual revenues (the size of organization on which the study focused) stated they want to accelerate their monthly close. More than half wanted to speed up the quarterly close. A fast, clean close is desirable because usually it reflects a well-designed process efficiently executed. A faster close gets financial information out to managers sooner, and for US public companies it makes it easier to deal with the Securities and Exchange Commission's (SEC) shorter filing deadlines. The study participants also think shortening the close is an important objective. Ventana Research advises companies to examine each element of the people-process-system to find opportunities to shave the time it takes to effect the close. In our judgment, having the right software becomes the most important factor in achieving an optimal closing period.