Reducing Accounting Closing Time

This assignment focuses on the role of a new controller in reducing the accounting closing process from two weeks to five days. The solution outlines a structured approach involving goal setting, team formation, journal entry prioritization, detailed scheduling, automation, and outsourcing considerations. It also discusses the advantages and disadvantages of outsourcing for this purpose.

Running head: ACCOUNTING CONTROLLERSHIP 1
Accounting Controllership
Student by (Name)
Institution

ACCOUNTING CONTROLLERSHIP 2
As the new controller in the organization, in order to reduce the process of closing down
the books of accounts from two weeks to five days as required by the management, I would use
various tactics to succeed. I would start by suggesting the removal of dubious procedures which
are being followed by the business entity (Bragg, 2009). I would revert to less simple and
accurate procedure while reducing the period. I would use a streamlined and well-optimized
procedure as shown below:
Set my goals for a three day close: normal business closing period is eight days but the
management wants it reduced to five days (Bragg, 2009). As a professional I will set my goals to
suit the schedule.
Convene a five person close improvement team: working with a small team is
manageable and a lineup of five people would work best. I will then inform the team of the
immediate and closing improvement program.
Creation of a journal entry Gantt chart: closing process consist of numeral journal entry
and selection of the journals will make the work easier and increase the speed.
Come up with a detailed close time schedule: this will include discipline and structure for
the closing process (Bragg, 2009).
Focus on journal entry: in relation to this I will start with the lastly posted journals
moving backwards as this will increase the speed.
Implement other ideas: I would automate the system, simplify or load balancing to reduce
time.
Documents
As a controller I would use journal entry books, balance sheets as well as invoices.
Resources

ACCOUNTING CONTROLLERSHIP 3
One of the main resources is manpower. I would require the following: five individuals;
computers (for excel work); QuickBooks; SharePoint; and a drop box.
Advantages and disadvantages of outsourcing
Outsourcing has pros and cons but in most cases the pros outweighs the cons (Weygandt,
Kieso, & Kimmel, 2010).
Pros of outsourcing
 Outsourcing is cost saving
 Improves work quality
 Makes focus on core business issues
 Outsourcing leads to customers’ satisfaction
 Leads to operational efficiency
Cons of outsourcing
 May result to quality risk
 Without measures can lead to poor quality service
 Negative employee opinion
 Low knowledge on the organization
 May result into leakage of confidential business information

ACCOUNTING CONTROLLERSHIP 4
References
Bragg, S. M. (2009). Controllership: The work of the managerial accountant. Hoboken, N.J:
Wiley.
Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2010). Managerial accounting: Tools for
business decision making. Hoboken, NJ: Wiley.