Organizations that release their earnings in a timely way send an important message of poise and competence to their stakeholders. Laggards, on the other hand, may run afoul of compliance deadlines or lead stakeholders to wonder whether there is an issue the organization is trying to hide.
APQC’s CFO, Perry Wiggins, recommends these three recommendations for improving your cycle time:
- WORK FOR QUALITY DATA AND CONSISTENT FORMATS -Working for reliable data and consistent formatting will help avoid unnecessary delays. For example, you can save time by creating a standard set of templates that can be used in multiple periods in the future so you do not have to recreate the wheel each year when it comes time to put your annual report together.
- BREAK DOWN YOUR PROCESS- Creating an effective process is crucial in large, globally distributed organizations where inputs come from various business units. If your cycle time is longer than desired, break the process into smaller segments to identify improvement opportunities. For instance, analyze if getting finance data from a specific unit is delayed or if the audit team's final review needs to speed up. This approach helps pinpoint bottlenecks and areas for impactful process enhancements.
- ACT AS CHAMPION FOR IMPROVEMENTS-Creating your earnings report involves many stakeholders, but the final responsibility lies with the CFO. Your cross-functional perspective allows you to identify challenges and training needs in the process. Use these insights to provide training, motivate your team, and focus on improving cycle time. Remember to celebrate your team’s efforts, both during the process and upon completion, to keep them engaged and ensure your expectations are clear.
To learn more and understand the average cycle time between completion of annual consolidated financial statements and the release of earnings, access APQC’s Three Ways to Release Your Earnings Faster.