Closes that drag on for weeks, unexplained balances and auditor-proposed adjustments are symptoms of the same problem: a lack of method. A fast and reliable close is built throughout the year, with simple, disciplined practices.
1. A close calendar with owners
Every task — from cost accruals to bank reconciliations — should have a date and an owner. The calendar makes the critical path visible and avoids the close depending on one person's memory.
2. Checklists by account area
For each relevant account area, define what must be checked, with what evidence and by whom. Checklists reduce omissions and make review easier.
3. Reconciliations with evidence
A reconciliation is only complete when differences are explained and documented. Keep the evidence with the reconciliation: that is what the auditor will ask for.
4. Balance and variance analysis
Compare balances with the prior period and the budget and explain significant variances before the accounts are approved, not afterwards.
5. An audit file prepared throughout the year
Anticipate critical topics, organise supporting files and follow up the previous year's recommendations. The audit becomes a confirmation, not a surprise.
If you want to review your organisation's close process, DRDS can help — from diagnosis to implementation.