accounting leaders are expected to deliver accurate and real time analysis of
their organization’s financial performance at all times. Yet many still wrestle
with decades-old accounting processes that can only provide a view into the
past, where the organization was, not where it is now. Continuous Accounting is
a modern approach that empowers real time financial intelligence and allows
finance and accounting teams to provide unprecedented value to the larger
The Old Model: Record-to-Report
activities and processes that were created and implemented twenty or more years
ago were not built for the modern business economy. The traditional
record-to-report process was designed to simply map-out tasks and
responsibilities that were required to be performed after the period-end,
whether directly involved in the financial close process or part of after-close
reconciliations and analysis. The process was built to accommodate rigid ERP
systems that do not integrate well with other data sources and fail to provide
accurate visibility into the chart-of-accounts. Record-to-report represents
items to be completed upon the completion of an accounting period – monthly,
nature of 24/7 global business means companies leaving much of the close work
to the end of period are at a competitive disadvantage.
created and processed around the clock stack up, and this increasingly large
set of unreconciled transactions strains employee productivity during the
close. A chaotic close exposes an organization to the risk of high rate of
errors in preparation along with less time for thorough review. This model
supports a start-stop view of how accountants approach reconciliation and close
activities that necessarily produce backward looking and out-of-date results.
Record-to-report is an antiquated approach to period-end accounting.
Approach: Continuous Accounting
Finance Controls and Automation platform delivers a fresh approach that
increases the quality, accuracy, and efficiency of the financial close and
other period-end activity. This new approach is known as Continuous Accounting.
The traditional model of record-to-report only focuses on collecting,
reviewing, and verifying an entire period’s data after the period ends.
Accounting embeds automation, control, and period-end tasks within day-to-day
activities, allowing the rigid accounting calendar to more closely mirror the
have embarked on the modern finance journey continually capture, validate, and
analyze financial data in a timely and precise manner. As a result,
organizations are no longer left with a look at where they were days or weeks
ago, but now have a real time picture of the current state of the company’s
accounts. Moreover, as close accounting processes traditionally left for the
days following the period-end are spread throughout the period, workloads are
more evenly distributed improving accuracy, allowing more time for review, and
preventing employee burnout. Continuous Accounting combines modern finance
strategies and cloud technology to deliver real time reporting, faster
analysis, and unprecedented operational efficiency. Continuous Accounting is the
modern approach to close accounting.
Click hereto download the Continuous Accounting Brief