I have worked with so many companies over the years, and it never ceases to amaze me how some can't or don't get their financial statements closed timely (let alone accurately) every month.
The financial statements are the most basic business scorecard. Scorecards by definition keep you accountable, let you know how your doing, and push teams to excel and do better.
I can't stress enough how important getting timely, accurate information is. It helps you drive sales, profit and cash flow. Timely information also let's you spot trouble early and allows you to make better decisions.
Also, most business owners focus completely on the income statement and almost ignore the balance sheet. The balance sheet is a key aspect to running an effective company and driving profit and cash flow.
I push all my clients to speed up their financial close process. Just think, GE closes its books in 2 days. Push to get the monthly financials done by the 5th day of the following month.
So, the challenge is to push your bookkeeper, accounting manager, controller or CFO. They may say it's impossible - we can't close any faster. Blah, blah, blah.
The key is to develop a month closing checklist. Drop in each item that needs to occur, who is responsible, and what date you expect it completed. Work backwards and focus to reduce each closing process. A slow process means things aren't automated and accurate all the time. That is the expectation. Can we run a weekly P+L? If not, why not. You get my drift.
