In the earlier article, we understand some of the reasons/justifications and challenges for a faster close.

So what can be some of the initiatives to drive a “faster close”:-

Review the work flow/process ( refer earlier article)
Increased automation – for example, online daily posting of sub ledgers […]

The earlier article dealt with some of the reasons for preparing the financial forecast.
As for the length and depth/details of the financial forecast, it varies as tabulated below:

Purpose/Requirements
How detailed?

1
To obtain banking facilities
12 months + 2 years

2
To restructure outstanding debts with banks
12 months + 3 to […]

Do we know why we need to prepare financial forecast?
Well, there are a few simple reasons:

To obtain Banking facilities by preparing projected financial statements like the Income Statement, Balance Sheet and Cash Flow Forecast.

With the forecasts, both the banker and company is able to determine […]

Sometimes, we might be confused with certain terms used like:

Flash
Best-estimate
Forecast
Budget
Plan

Normally flash is when the company’s cut off is over but the accounting deadline for submission is still a bit far away like about 7 to 10 days.
Local management or your overseas bosses want to see a “ flash” – an image of what might be […]

It is easier said then done by wanting to institute financial discipline into the organization.
To implement accurate and timely financial planning, it is quite difficult for the following reasons:

We need to get data from other operating management of different business unit. We are now crossing outside our own finance border into the operation and the […]