Barriers to Fast Accounting Close

While compliance-related issues have resulted in the increase of close cycles, compliance itself is not a direct barrier to a world-class close. It is the
governance process required to meet statutory requirements that creates an environment which puts additional burden on existing processes, making them less efficient or in cases where they are already strained taking those processes to the breaking point.

The issues lie with the processes, people and technology barriers
to a fast close which can be found at both the head office and reporting unit
level, and affect multiple teams and processes. Some of the most frequently cited
barriers—based on our experience of supporting fast close initiatives in the corporate centers of today’s global enterprises—are presented in Figure below with a number of the most significant explained in more detail.


Source: Business Objects