Controllership Report: Reducing Closing Time for Accounting Processes

This report examines the role of an accounting controller in streamlining financial processes, with a specific focus on reducing the time required to close the books of accounts. The report outlines a strategy to achieve this goal, including setting objectives, forming a dedicated team, creating a journal entry Gantt chart, developing a detailed schedule, and prioritizing journal entries. Additionally, the report discusses the resources required for the process, such as manpower and software, and the advantages and disadvantages of outsourcing certain accounting functions. The report is based on established accounting principles and references relevant literature to support its recommendations. The report offers practical solutions and insights into enhancing efficiency in financial reporting and accounting operations.

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.