Lean Accounting Series : Article 4 - Finish the year with efficiency to begin the next on the right foot

Winner is the one who finishes the race in time

The financial soundness of the organization is reflected by the year-end financials. The preparation of the financials requires a process that is year-end closure of the books of accounts. This process mandates certain adjustments to present the financials in a way that is readable by all stakeholders. The practice of lean accounting throughout the year and especially at year-end will result in faster and more accurate financial reporting. Lean accounting will define a crisp process thus ensuring the elimination of unwanted processes. A defined process of extracting the data from the relevant systems, adjustments required, passing the relevant year-end entries, and presentation of the financials in the most readable format is how lean accounting can bring about efficiency.

For timely closure of books without errors, the process requires a clear definition of roles and responsibilities and a strong review process. Lean Accounting will address this and make the process smooth.