9th October 2006
UK businesses need to implement a Fast Close strategy if they are to continue to reduce financial reporting times, according to performance management specialist, Cartesis. In response to general industry trends that sees European companies closing and auditing year end results more quickly and narrowing the lead of their US counterparts, Cartesis is urging corporates to adopt a tighter process to ensure they continue to decrease the gap.

In an attempt to help businesses understand the importance and value of a timely close, Cartesis has launched a guide offering companies strategic and practical advice. The guide, “Five Steps to Fast Close” is part of a range of deliverables to help close faster, and steers businesses towards processes that minimise the risk of late reporting, help reduce costs, improve control and expand analysis.

It also urges businesses to align potential changes and KPIs (Key Performance Indicators) with broader business goals, such as compliance, staff deployment and cost. The at-a-glance guide also ensures companies are benchmarked against the industry, improving stakeholder confidence. Finally, businesses are advised to deploy a highly structured and pragmatic action plan incorporating three phases: vision, design and implementation.

James Fisher, Director at Cartesis, stated: “The impact of corporate regulation, such as Sarbanes-Oxley, has been hugely underestimated, to such an extent that it has opened a gulf between Europe and the US , posing a fundamental shift in the fast close balance of power.”

“However, UK businesses must not be complacent as they are currently faced with an ever-changing regulatory landscape. The value of reducing the time it takes to close year end results cannot be underestimated. Fast close not only minimises the risk of late reporting, but also provides more timely and relevant information to stakeholders, saves money, improves control and leaves more time for business and performance analysis.

“We wanted to produce a guide that gives some simple but much-needed advice to help businesses put a strategy together to achieve best practice, compete and be prepared for future change,” he concluded.

Related FSN articles:

Fast close is back in fashion
European companies reporting faster and closing the gap on US counterparts despite IFRS
FSN White Paper The Impact of the newly emerging field of financial data quality management on group reporting and performance management processes