The financial close is a critical process for every finance organization. It enables companies to consolidate accounting data, validate financial results and produce the reporting required to manage performance.
Yet for many organizations, the close remains a lengthy and complex process. Finance teams often have to collect data from multiple systems, perform manual checks, reconcile information, work with Excel files and manage numerous approval steps.
This complexity can lead to longer close cycles, a higher risk of errors, increased pressure on Finance teams and delays in obtaining a reliable view of financial performance.
In this context, Enterprise Performance Management (EPM) solutions can help structure and automate a significant part of the financial close process.
So, how can companies reduce financial close time with EPM ?
Why can financial close take so long ?
Before trying to accelerate the close, it is important to understand its main sources of inefficiency.
1. Data comes from multiple systems
The data required for the close may be spread across:
- ERP systems;
- accounting applications;
- subsidiary management systems;
- reporting tools;
- Excel spreadsheets;
- internal or external databases.
When this information has to be collected manually, Finance teams spend a significant amount of time preparing and checking data.
2. Heavy reliance on Excel
Excel remains widely used by Finance teams for adjustments, controls and certain consolidation activities.
However, as processes become more complex, multiple files, versions and formulas can significantly slow down the close.
They can also make it more difficult to track changes and identify the origin of a figure.
3. Manual controls and approvals
A financial close typically involves numerous checks:
- data consistency;
- reconciliations;
- intercompany eliminations;
- consolidation controls;
- result validation;
- variance analysis.
When these activities are performed manually, they can consume significant resources and become a major bottleneck.
4. Different processes across entities
In international groups, subsidiaries may use different methods, calendars and data formats.
This makes data collection and consolidation more complex.
The objective is therefore not simply to work faster. It is also to standardize the financial close process.
How can EPM accelerate financial close ?
An EPM solution can centralize financial data and structure the different stages of the close process.
The objective is not simply to replace Excel with another application. It is to create a more automated, controlled and collaborative Finance process.
1. Centralize financial data
One of the main benefits of EPM is the ability to centralize the information required for consolidation and reporting.
Data can be collected from different systems and integrated into a common environment.
Finance teams therefore have access to structured data and can reduce manual data handling.
Result: less time spent collecting and preparing information.
2. Automate recurring processes
Some activities are repeated during every close:
- data imports;
- controls;
- reconciliations;
- currency conversions;
- calculations;
- intercompany eliminations;
- consolidation;
- reporting.
An EPM solution can automate a significant portion of these activities.
Finance teams can then spend more time analyzing results rather than performing repetitive administrative tasks.
3. Standardize the financial close process
EPM can also help organizations establish common processes across entities.
For example, a group can define:
- a common close calendar;
- standardized control rules;
- approval workflows;
- clearly defined responsibilities;
- consistent data formats.
This standardization improves coordination between subsidiaries and corporate Finance teams.
It also helps reduce differences in processes and practices across entities.
Reduce errors to accelerate financial close
Accelerating the close does not simply mean removing steps.
A fast close must also be reliable.
Automated EPM controls can help identify anomalies and inconsistencies earlier in the process.
For example, rules can check:
- data balances;
- significant variances;
- missing data;
- inconsistencies between entities;
- intercompany transactions;
- unusual changes.
Finance teams can then focus on exceptions instead of manually reviewing every piece of information.
Automate financial close workflows
Task management is another important part of the close process.
Without a structured workflow, teams may rely on emails and tracking spreadsheets to determine:
- who needs to complete a task;
- which data has been approved;
- which steps remain outstanding;
- which issues need to be resolved.
An EPM solution can centralize this information through workflows.
Each participant can have a clear view of assigned tasks and their current status.
Key benefits include:
- better coordination between teams;
- greater visibility into close progress;
- fewer manual exchanges;
- improved approval traceability;
- faster identification of bottlenecks.
Accelerate financial consolidation
For international groups, consolidation is often one of the most complex stages of the financial close.
It may involve:
- collecting subsidiary data;
- harmonizing master data;
- currency conversion;
- intercompany eliminations;
- applying consolidation rules;
- producing consolidated financial statements.
A dedicated EPM solution can integrate these rules directly into the process.
Processes can therefore be executed in a more systematic and repeatable way.
This reduces manual intervention and makes the overall close process more predictable.
Improve data traceability
Speed should never come at the expense of traceability.
In a Finance environment, it is essential to understand:
- where a figure comes from;
- which processes have been applied;
- which changes have been made;
- who approved the information;
- which version of a report was used.
EPM solutions can provide greater visibility into the lifecycle of financial data and processes.
This traceability can also support internal controls and audit activities.
Can EPM really reduce financial close time ?
Yes, but the technology alone is not enough.
Reducing financial close time depends on several factors.
1. Data quality
Incomplete or inconsistent data will continue to slow down the close, even with a powerful EPM solution.
2. Process quality
Automating an inefficient process does not necessarily improve it.
Organizations should therefore analyze existing processes before automating them.
3. Integration with existing systems
The more automatically data can be integrated from ERP and other source systems, the fewer manual operations Finance teams need to perform.
4. User adoption
Finance teams need to understand the new processes and know how to use the solution.
Change management is therefore an essential part of the project.
To go further, read How to Successfully Migrate to a New Financial Consolidation Solution?
How to successfully accelerate the financial close
Several steps can help organizations structure an EPM project.
Step 1: Analyze the current process
Identify the different stages of the financial close and measure the time spent on each one.
Relevant KPIs may include:
- total close duration;
- time spent collecting data;
- number of manual adjustments;
- number of errors or corrections;
- time spent on controls;
- number of files used;
- approval lead times.
This analysis helps identify the main bottlenecks.
Step 2: Identify automatable activities
Not every step necessarily needs to be automated.
Organizations should prioritize activities that are:
- repetitive;
- time-consuming;
- heavily dependent on Excel;
- prone to errors;
- subject to systematic controls.
Step 3: Define the target process
The organization can then design a new close process:
- Which data should be integrated automatically?
- Which rules should be automated?
- Which controls should be performed?
- Which approvals should be included in workflows?
- Which reports should be generated automatically?
Step 4: Support Finance teams
Project success also depends on user adoption.
Teams need to understand not only how to use the EPM solution, but also why the processes are changing.
EPM and ERP : complementary solutions
EPM does not necessarily replace the ERP.
The two solutions serve complementary purposes.
The ERP is generally the system of record for operational transactions and accounting.
EPM focuses more on:
- consolidation;
- planning;
- reporting;
- forecasting;
- performance analysis;
- Finance process management.
A properly integrated ERP and EPM architecture can therefore streamline the flow of data between systems.
What does this mean for Finance teams ?
The objective of a faster close is not simply to make Finance teams work harder or faster.
It is primarily about reducing low-value manual activities.
With better automated processes, Finance teams can spend more time on:
- analyzing results;
- identifying variances;
- analyzing performance;
- supporting business teams;
- providing management with meaningful insights.
The Finance function can therefore progressively move from a role focused primarily on data production to one more focused on analysis and performance management.
How should companies measure progress after implementing EPM ?
To determine whether the project is delivering the expected results, organizations should track KPIs before and after implementation.
Relevant indicators include:
- total financial close duration;
- number of days required for consolidation;
- time spent on manual adjustments;
- number of errors identified;
- number of automated tasks;
- time required to produce reports;
- number of Excel files used;
- percentage of close activities completed on schedule.
These indicators provide a concrete way to measure the benefits achieved.
BHI Consulting approach
Accelerating financial close requires organizations to address processes, data, technology and Finance operating models together.
BHI Consulting supports companies in Finance transformation and EPM projects, including solutions such as OneStream and CCH Tagetik.
Our approach is based on understanding existing processes, identifying improvement opportunities and designing a solution adapted to the organization’s needs.
The objective is to automate low-value activities, improve data reliability and enable Finance teams to spend more time analyzing and managing performance.
Conclusion
Reducing financial close time is not simply about making accounting processes faster. It requires a broader transformation of the entire process, from data collection and controls to consolidation, approval and reporting.
With EPM, organizations can centralize data, automate recurring activities, standardize processes and improve data traceability.
However, sustainable results also depend on efficient processes, reliable data and strong user adoption.
Looking to accelerate your financial close and assess the benefits of an EPM solution? Contact our experts to discuss your project and identify the best options for your organization.
