The Fast Close Toolkit
Published on 25. December 2019
Book
Hardback
400 pages
978-1-119-55449-3 (ISBN)
Description
This publication focuses on the critical methods that can be used to dramatically improve the fiscal closing process.
The Record to Report (R2R) or Fiscal Closing Process is at the core of the controllership function. The process includes transaction processing, internal and external reporting, and the internal controls--the people, processes, and technology--that constitute the corporate organizational hierarchy. CFOs, controllers, and corporate finance departments require timely, accurate, and consistent data to make appropriate operational and strategic decisions and fulfill statutory, regulatory, and compliance requirements with accurate and timely data. The Fast Close Toolkit offers both strategic and tactical suggestions that can significantly improve the fiscal closing process and provides guidance on new legislation requirements, systems and best practice processes. Checklists, templates, process narratives, and sample policies are provided for every component of the fiscal close.
Investors and shareholders expect fast and easy access to the data created by current business activities in the information-driven digital age. The Fast Close Toolkit provides the necessary tools and expert advice to improve the fiscal closing process. Authoritative and up to date, this book:
Identifies the bottlenecks that can impact the and improvethe fiscal close process and provides best practices to help alleviate these challenges
Defines the Record to Report (R2R) and recommends the roles and responsibilities for fiscal close processes flow
Offers the internal controls to use for the end-to-end fiscal close process
Describes approaches for risk management, R2R, and fiscal close benchmarking
Identifies KPIs for all aspects of the R2R process
Provides the mechanism for developing a financial close scorecard
Recommends leading practices for both external and internal reporting
Provides guidance on how strategic planning, the budget and forecast processes can be streamlined to enhance the fiscal close and internal reporting results
Written by a respected expert on internal controls and the fiscal closing process, The Fast Close Toolkit is a valuable source of information for professionals involved in controllership and have responsibility for the fiscal close.
The Record to Report (R2R) or Fiscal Closing Process is at the core of the controllership function. The process includes transaction processing, internal and external reporting, and the internal controls--the people, processes, and technology--that constitute the corporate organizational hierarchy. CFOs, controllers, and corporate finance departments require timely, accurate, and consistent data to make appropriate operational and strategic decisions and fulfill statutory, regulatory, and compliance requirements with accurate and timely data. The Fast Close Toolkit offers both strategic and tactical suggestions that can significantly improve the fiscal closing process and provides guidance on new legislation requirements, systems and best practice processes. Checklists, templates, process narratives, and sample policies are provided for every component of the fiscal close.
Investors and shareholders expect fast and easy access to the data created by current business activities in the information-driven digital age. The Fast Close Toolkit provides the necessary tools and expert advice to improve the fiscal closing process. Authoritative and up to date, this book:
Identifies the bottlenecks that can impact the and improvethe fiscal close process and provides best practices to help alleviate these challenges
Defines the Record to Report (R2R) and recommends the roles and responsibilities for fiscal close processes flow
Offers the internal controls to use for the end-to-end fiscal close process
Describes approaches for risk management, R2R, and fiscal close benchmarking
Identifies KPIs for all aspects of the R2R process
Provides the mechanism for developing a financial close scorecard
Recommends leading practices for both external and internal reporting
Provides guidance on how strategic planning, the budget and forecast processes can be streamlined to enhance the fiscal close and internal reporting results
Written by a respected expert on internal controls and the fiscal closing process, The Fast Close Toolkit is a valuable source of information for professionals involved in controllership and have responsibility for the fiscal close.
More details
Other editions
Additional editions
Christine H. Doxey
The Fast Close Toolkit
E-Book
12/2019
1st Edition
Wiley
€52.99
Available for download
Christine H. Doxey
The Fast Close Toolkit
E-Book
12/2019
1st Edition
Wiley
€52.99
Available for download
Content
Introduction
Improving the Fiscal Close
Best Practice 1 Consider the Use of a Single ERP System
Best Practice 2 Employ Cloud-Based Computing
Executive Summary
How this Toolkit is Organized
Table of Best Practices
Table of Policies
Table of Checklists
Table of Process Narratives
Table of Standards of Internal Control
Chapter 1 Why the Continued Focus on the Fiscal Closing Process?
An Overview of the Fiscal Close
Chapter 2 Key Pain Points and Bottlenecks
Chapter 3 The Components of the Fiscal Close
Best Practice 3 Implement Cut-off Dates
Chapter 4 Governing the Fiscal Close Process
Best Practice 4 Implement a Fiscal Close Governance Process
Chapter 5 The Transaction Accumulation, Reconciliation and Sub-Ledger Close
Best Practice 5 Complete General Ledger Reconciliations
Chapter 6 Introduction to the Standards of Internal Control
Best Practice 6 Implement an Internal Controls Program
Chapter 7 Roles and Responsibilities during the Fiscal Close
Chapter 8 The General Ledger and Trial Balance
Chapter 9 The Common Chart of Accounts
Best Practice 7 Implement a Common Chart of Accounts
Chapter 10 Cost Centers
Best Practice 8 Define Business Rules for Establishing Cost Centers
Best Practice 9 Define Allocation Risks
Common Allocation Challenges
Best Practice 10 Implement an Indirect Cost Allocation Methodology
Chapter 11 The Journal Entry Process
Best Practice 11 Streamline Recurring Journal Entries
Chapter 12 Spreadsheet Controls
Best Practice 12 Address Spreadsheet Risks and Implement Controls
Chapter 13 Checklists for the Transaction Accumulation and Sob-Ledger Close
Checklist 1 Transaction Accumulation and Fiscal Close Checklist
Checklist 2 Fiscal Year End Close Sample Schedule
Checklist 3 Accounts Payable Roles and Responsibilities Year End Checklist
Checklist 4 Reconciliation Template
Chapter 14 Sample Policies for the Transaction Accumulation, Reconciliation and Sub-Ledger Close
Policy 1 Account Reconciliation Policy
Policy 2 Accounts Payable Accruals
Policy 3 Spreadsheet Controls
Chapter 15 Process Narratives for the Transaction Accumulation, Reconciliation and Sub-Ledger Close Process
Process Narrative 1 Journal Entry (JE) Process
Process Narrative 2 Management Approval of JEs
Process Narrative 3 Other Current and Long Term Assets
Process Narrative 4 Other Current and Long Term Liabilities
Chapter 16 Standards of Internal Control for the Transaction, Accumulation, Reconciliation and Sub-Ledger Close Process
Standards of Internal Control 1 Journal Entry (JE) Process
Standards of Internal Control 2 Approval of Journal Entries
Standards of Internal Control 3 Other Current and Long Term Assets
Standards of Internal Control 4 Other Current and Long Term Liabilities
Chapter 17 Corporate Close and Consolidation
Differences between IFRS and U.S. GAAP That Impact the R2R Process
How Often are New IFRS Pronouncements Issued?
Is IFRS, as Issued by the IASB, the Same for all Companies and Industries, in all Countries
What is the Principal Standard Governing Conversion to IFRS?
Does IFRS Use the Same Financial Statements as those Required under U.S. GAAP?
How will IFRS Impact Internal Control Reporting and Certification under the Sarbanes Oxley Act of2002?
Chapter 18 The Number of Consolidation Points
Best Practice 13 Automate the Consolidation Process
Best Practice 14 Include the People that Impact the Close
Best Practice 15 Create Consistent Closing Schedules
Best Practice 16 Consider Fiscal Close Process Improvements
Chapter 19 The Number of Closing Cycles
Best Practice 17 Reduce the Number of Closing Cycles
Chapter 20 Post-Closing Entries
Best Practice 18 Develop Business Rules for Post-Closing Entries
Chapter 21 Communication and Accountability
Chapter 22 Financial Statement Assertions
Financial Statement Assertion Requirements and Application
Chapter 23 Checklists for the Corporate Close and Consolidation Process
Checklist 5 Corporate Close and Consolidation
Checklist 6 Executive Level Closing Checklist
Checklist 7 Twenty Critical Areas to Review at Year-End
Checklist 8 The Year-End Financial Statement Checklist
Checklist 9 The Year-End Transaction Checklist
Checklist 10 The Year-End Payroll Process Checklist
Chapter 24 Sample Policies for the Corporate Close and Consolidation Process
Policy 4 Fiscal Close and Consolidation Process
Chapter 25 Process Narratives for the Corporate Close and Consolidation Process
Process Narrative 5 Balance Sheet Consolidation
Process Narrative 6 Assets Held for Sale Due to Discontinued Operations
Chapter 26 Standards of Internal Control for the Corporate Close and Consolidation Process
Standards of Internal Control 5 Balance sheet Consolidation
Standards of Internal Control 6 Assets Held for Sale Due to Discontinued Operations
Chapter 27 Analysis and Reporting (The Final Mile)
Chapter 28 Internal Reporting and External Reporting
Best Practice 19 Ask Key Questions to Define Your Internal Financial Reporting Process
Chapter 29 Budgeting and Forecasting
Best Practice 20 Consider Five Steps for a Successful Budget Process
Chapter 30 Reduce Fiscal Close Cycle Times by Moving Your Finance Function to "Dynamic" Budgeting and Planning
Chapter 31 Fixed Assets and the Capital Budget
Best Practice 21 Establish a Capital Budget Process
Developing the Capital Budget
Best Practice 22 The Capital Review and Approval Board (CARB) Process
Construction in Process Accounting
Fixed Asset Management
Depreciation Methods
Intangible Assets
Asset Appreciation and Asset Impairment
Disposal of Fixed Assets
The Capital Budget and Fixed Assets Business Process Risks and Challenges
Chapter 32 The Forecast Process
About the Forecast Process
The Forecasting Process for Small Businesses
Forecasting Tools
Chapter 33 The Fiscal Close and Strategic Planning
Best Practice 23 Include Finance and Accounting in the Strategic Planning Process
Best Practice 24 Use a Strategic Planning Readiness Checklist
Best Practice 25 -Follow These Seven Steps for Your Strategic Planning Process
Best Practice 26 Implement Six Key Elements for your Strategic Plan
Best Practice 27 Use a Standardized Table of Contents for Your Strategic Plan
Strategic Planning Methodologies
Best Practice 28 Establish Performance Metrics to Determine the Effectiveness of Your Strategic Plan
Chapter 34 Analytics to Detect Financial Statement Fraud
Best Practice 29 Use Red Flags to Detect Financial Statement Fraud
The National Commission on Fraudulent Financial Reporting (The Tread way Commission)
Chapter 35 Checklists for the Analysis and Reporting Process
Checklist 11 Quarter End Fiscal Close (10Q)
Checklist 12 Year End Fiscal Close (10K)
Checklist 13 -Performing Financial Statement Analysis
Checklist 14 Trend Analysis
Chapter 36 Sample Policies for the Analysis and Reporting Process
Policy 5 Basic Policies on Financial Reporting
Chapter 37 Process Narratives for the Analysis and Reporting Process
Process Narrative 7 Disclosure Checklist
Process Narrative 8 Fluctuation Analysis
Process Narrative 9 Cash Flow Statement Reconciliation
Process Narrative 10 -Reporting Debt
Chapter 38 Standards of Internal Control for the Analysis and Reporting Process
Standards of Internal Control 7 -Disclosure Checklist
Standards of Internal Control 8 Fluctuation Analysis
Standards of Internal Control 9 Cash Flow Statement Reconciliation
Standards of Internal Control 10 Reporting Debt
Chapter 39 The Virtual Close Myth or Reality?
What is the Virtual Close?
How is the Virtual Close Different from the Soft close?
Case Study: The Virtual Close at Cisco
More than Technology
Implementing a Virtual Close
Four Implementation Guidelines
Eight Implementation Advisories
Chapter 40 Roadmap:Benefits of the Fast Close
Chapter 41 Accelerating the Close with Automation
Addendum:Fast Close Tools and Additional Best Practices
1. Contingency Planning
Developing an Developing the IT Business Continuity Plan
Roles and Responsibilities
Oversight & Governance
Business Resiliency
Disaster Recovery
Disaster Recovery and Cloud Providers
2. Roadmap 25 Steps to Shorten the Fiscal Close
Best Practice 30-Establish Escalation Procedures:
3. The Monthly Financial Close Process Checklist
4. Foreign Corrupt Practices Act (FCPA)
5. Accelerate Your Financial Close -A 35 Step Roadmap
6. The Fast Close Compliance Toolkit
7. The M&A Due Diligence Checklist
8. Finance and Accounting Key Business Partnership Matrix
9. Fiscal Close Risks and Challenges
10. Fiscal Close Standards of Internal Control
11. The Fiscal Close Dashboard
12. The Controller's Dashboard
13. The Detailed Fiscal Close Scorecard
14. The Project Management Toolkit
Glossary
Improving the Fiscal Close
Best Practice 1 Consider the Use of a Single ERP System
Best Practice 2 Employ Cloud-Based Computing
Executive Summary
How this Toolkit is Organized
Table of Best Practices
Table of Policies
Table of Checklists
Table of Process Narratives
Table of Standards of Internal Control
Chapter 1 Why the Continued Focus on the Fiscal Closing Process?
An Overview of the Fiscal Close
Chapter 2 Key Pain Points and Bottlenecks
Chapter 3 The Components of the Fiscal Close
Best Practice 3 Implement Cut-off Dates
Chapter 4 Governing the Fiscal Close Process
Best Practice 4 Implement a Fiscal Close Governance Process
Chapter 5 The Transaction Accumulation, Reconciliation and Sub-Ledger Close
Best Practice 5 Complete General Ledger Reconciliations
Chapter 6 Introduction to the Standards of Internal Control
Best Practice 6 Implement an Internal Controls Program
Chapter 7 Roles and Responsibilities during the Fiscal Close
Chapter 8 The General Ledger and Trial Balance
Chapter 9 The Common Chart of Accounts
Best Practice 7 Implement a Common Chart of Accounts
Chapter 10 Cost Centers
Best Practice 8 Define Business Rules for Establishing Cost Centers
Best Practice 9 Define Allocation Risks
Common Allocation Challenges
Best Practice 10 Implement an Indirect Cost Allocation Methodology
Chapter 11 The Journal Entry Process
Best Practice 11 Streamline Recurring Journal Entries
Chapter 12 Spreadsheet Controls
Best Practice 12 Address Spreadsheet Risks and Implement Controls
Chapter 13 Checklists for the Transaction Accumulation and Sob-Ledger Close
Checklist 1 Transaction Accumulation and Fiscal Close Checklist
Checklist 2 Fiscal Year End Close Sample Schedule
Checklist 3 Accounts Payable Roles and Responsibilities Year End Checklist
Checklist 4 Reconciliation Template
Chapter 14 Sample Policies for the Transaction Accumulation, Reconciliation and Sub-Ledger Close
Policy 1 Account Reconciliation Policy
Policy 2 Accounts Payable Accruals
Policy 3 Spreadsheet Controls
Chapter 15 Process Narratives for the Transaction Accumulation, Reconciliation and Sub-Ledger Close Process
Process Narrative 1 Journal Entry (JE) Process
Process Narrative 2 Management Approval of JEs
Process Narrative 3 Other Current and Long Term Assets
Process Narrative 4 Other Current and Long Term Liabilities
Chapter 16 Standards of Internal Control for the Transaction, Accumulation, Reconciliation and Sub-Ledger Close Process
Standards of Internal Control 1 Journal Entry (JE) Process
Standards of Internal Control 2 Approval of Journal Entries
Standards of Internal Control 3 Other Current and Long Term Assets
Standards of Internal Control 4 Other Current and Long Term Liabilities
Chapter 17 Corporate Close and Consolidation
Differences between IFRS and U.S. GAAP That Impact the R2R Process
How Often are New IFRS Pronouncements Issued?
Is IFRS, as Issued by the IASB, the Same for all Companies and Industries, in all Countries
What is the Principal Standard Governing Conversion to IFRS?
Does IFRS Use the Same Financial Statements as those Required under U.S. GAAP?
How will IFRS Impact Internal Control Reporting and Certification under the Sarbanes Oxley Act of2002?
Chapter 18 The Number of Consolidation Points
Best Practice 13 Automate the Consolidation Process
Best Practice 14 Include the People that Impact the Close
Best Practice 15 Create Consistent Closing Schedules
Best Practice 16 Consider Fiscal Close Process Improvements
Chapter 19 The Number of Closing Cycles
Best Practice 17 Reduce the Number of Closing Cycles
Chapter 20 Post-Closing Entries
Best Practice 18 Develop Business Rules for Post-Closing Entries
Chapter 21 Communication and Accountability
Chapter 22 Financial Statement Assertions
Financial Statement Assertion Requirements and Application
Chapter 23 Checklists for the Corporate Close and Consolidation Process
Checklist 5 Corporate Close and Consolidation
Checklist 6 Executive Level Closing Checklist
Checklist 7 Twenty Critical Areas to Review at Year-End
Checklist 8 The Year-End Financial Statement Checklist
Checklist 9 The Year-End Transaction Checklist
Checklist 10 The Year-End Payroll Process Checklist
Chapter 24 Sample Policies for the Corporate Close and Consolidation Process
Policy 4 Fiscal Close and Consolidation Process
Chapter 25 Process Narratives for the Corporate Close and Consolidation Process
Process Narrative 5 Balance Sheet Consolidation
Process Narrative 6 Assets Held for Sale Due to Discontinued Operations
Chapter 26 Standards of Internal Control for the Corporate Close and Consolidation Process
Standards of Internal Control 5 Balance sheet Consolidation
Standards of Internal Control 6 Assets Held for Sale Due to Discontinued Operations
Chapter 27 Analysis and Reporting (The Final Mile)
Chapter 28 Internal Reporting and External Reporting
Best Practice 19 Ask Key Questions to Define Your Internal Financial Reporting Process
Chapter 29 Budgeting and Forecasting
Best Practice 20 Consider Five Steps for a Successful Budget Process
Chapter 30 Reduce Fiscal Close Cycle Times by Moving Your Finance Function to "Dynamic" Budgeting and Planning
Chapter 31 Fixed Assets and the Capital Budget
Best Practice 21 Establish a Capital Budget Process
Developing the Capital Budget
Best Practice 22 The Capital Review and Approval Board (CARB) Process
Construction in Process Accounting
Fixed Asset Management
Depreciation Methods
Intangible Assets
Asset Appreciation and Asset Impairment
Disposal of Fixed Assets
The Capital Budget and Fixed Assets Business Process Risks and Challenges
Chapter 32 The Forecast Process
About the Forecast Process
The Forecasting Process for Small Businesses
Forecasting Tools
Chapter 33 The Fiscal Close and Strategic Planning
Best Practice 23 Include Finance and Accounting in the Strategic Planning Process
Best Practice 24 Use a Strategic Planning Readiness Checklist
Best Practice 25 -Follow These Seven Steps for Your Strategic Planning Process
Best Practice 26 Implement Six Key Elements for your Strategic Plan
Best Practice 27 Use a Standardized Table of Contents for Your Strategic Plan
Strategic Planning Methodologies
Best Practice 28 Establish Performance Metrics to Determine the Effectiveness of Your Strategic Plan
Chapter 34 Analytics to Detect Financial Statement Fraud
Best Practice 29 Use Red Flags to Detect Financial Statement Fraud
The National Commission on Fraudulent Financial Reporting (The Tread way Commission)
Chapter 35 Checklists for the Analysis and Reporting Process
Checklist 11 Quarter End Fiscal Close (10Q)
Checklist 12 Year End Fiscal Close (10K)
Checklist 13 -Performing Financial Statement Analysis
Checklist 14 Trend Analysis
Chapter 36 Sample Policies for the Analysis and Reporting Process
Policy 5 Basic Policies on Financial Reporting
Chapter 37 Process Narratives for the Analysis and Reporting Process
Process Narrative 7 Disclosure Checklist
Process Narrative 8 Fluctuation Analysis
Process Narrative 9 Cash Flow Statement Reconciliation
Process Narrative 10 -Reporting Debt
Chapter 38 Standards of Internal Control for the Analysis and Reporting Process
Standards of Internal Control 7 -Disclosure Checklist
Standards of Internal Control 8 Fluctuation Analysis
Standards of Internal Control 9 Cash Flow Statement Reconciliation
Standards of Internal Control 10 Reporting Debt
Chapter 39 The Virtual Close Myth or Reality?
What is the Virtual Close?
How is the Virtual Close Different from the Soft close?
Case Study: The Virtual Close at Cisco
More than Technology
Implementing a Virtual Close
Four Implementation Guidelines
Eight Implementation Advisories
Chapter 40 Roadmap:Benefits of the Fast Close
Chapter 41 Accelerating the Close with Automation
Addendum:Fast Close Tools and Additional Best Practices
1. Contingency Planning
Developing an Developing the IT Business Continuity Plan
Roles and Responsibilities
Oversight & Governance
Business Resiliency
Disaster Recovery
Disaster Recovery and Cloud Providers
2. Roadmap 25 Steps to Shorten the Fiscal Close
Best Practice 30-Establish Escalation Procedures:
3. The Monthly Financial Close Process Checklist
4. Foreign Corrupt Practices Act (FCPA)
5. Accelerate Your Financial Close -A 35 Step Roadmap
6. The Fast Close Compliance Toolkit
7. The M&A Due Diligence Checklist
8. Finance and Accounting Key Business Partnership Matrix
9. Fiscal Close Risks and Challenges
10. Fiscal Close Standards of Internal Control
11. The Fiscal Close Dashboard
12. The Controller's Dashboard
13. The Detailed Fiscal Close Scorecard
14. The Project Management Toolkit
Glossary