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What Does a 3-Day Close Look Like? (Blog Series Part 2 of 5)

February 4, 2020Kerry (Rosvold) Peters

If your company is currently not accomplishing a 3-day close, this might be what your close looks like. In a scenario when a company is taking all month (or more) to close, the example below illustrates how long it takes to get each major section of the close completed.

Closing sales sometimes takes the shortest amount of time as long as the company keeps up with the process of invoicing daily or at least weekly. Accounts payable is often the big offender as far as time. If you’ve gotten into the habit of waiting on your vendors to send invoices in, and this holds up your close, keep reading this series to learn what to do instead! Once sales and accounts payable are completed, we can finally sit down to evaluate the accounts. This may involve detailed transactional review of accounts, information gathering, pulling of paper documents, and quite a few correcting journal entries to eliminate the wrong entries we have identified.

And finally, as is the habit with all long processes, we may rush through the final process just to get it done. Why? Because tomorrow we need to start the process of closing the next month-end!

Think for just a minute about what this really means – the main activity our team is focusing on all month is closing the month! They aren’t getting to focus on analysis, continuous process improvement, or implementing necessary change they’ve already identified as needing to be done. Why? Because they are too busy. Doing what? Closing the month!

 

In contrast, this is what a 3-day close should look like. Notice the significantly decreased amount of time on each area. This truly is a process of finalization. What that means is that there have been many changes and improvements done ahead of days one through three which make sure everything is ready to be made final in a very short period of time.

 

This is not easy to do, it can’t be done overnight, but it absolutely can be done. Keep reading the next posts in the series to discover how you can get to a month-end that looks like this one.

As you prepare for your own Faster Month End Close and are looking to improve your use of Business Central / NAV, streamline your processes, or reduce your cost of doing business, please give us a call and let us know how we can help. You can find more information on our website about our services and see our training schedule with over 40 classes offered in 2020.

 

 

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The experts at New View Strategies are experienced Dynamics NAV and Business Central trainers and business process consultants who have walked in your shoes as former Corporate Controllers, Directors of IT, and Solution Architects, and believe increased utilization of your business systems is critical to the continued success of your company.
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