Let’s say you buy in to having a flash report or “soft close” on your financial numbers within a day or two after month end for your company.

Then you have the challenge - getting your accounting department to buy into the idea.

What accounting will fear is having a significant gap between the soft close and the final numbers. 

Creating estimates goes against their normal mentality.  They take pride in getting the numbers right.  Precision rules.  Estimates can feel fuzzy.  Judgment calls have to be made.  This brings in ambiguity they might not be able to tolerate.

The key is to lower the stress level and give them permission to be off on the estimates.  Let them know that you understand that these are estimates and not precise numbers.  You don’t expect them to nail these numbers right off the bat.

Tell them you are looking for numbers in the ballpark, not precise numbers for the estimates.

Also point out that you realize that they will get better at the estimates over time.  The gap between the soft close and the final close can get narrower over time.  I have found it that way with clients I do this for.  I learn from the biggest gaps and work on getting better at those particular numbers the next couple months.

Things can also offset.  Some expenses can come in higher than estimates while others might fall lower than expected.

However, to get better at the soft close process, you have to start doing a soft close process.

Give your accounting department room to err on estimates – and get them moving on the soft close.