How Listed Companies Can Speed Up Their Quarterly Close

Listed companies face a tight window every quarter: close the books, consolidate, get the results reviewed, and have them approved and filed within SEBI's deadline. Companies that do this smoothly have usually built a disciplined close process. Here's how.

1. Publish a Close Calendar

Set out, for every quarter, the day each task is due: sub-ledger closes, reconciliations, subsidiary submissions, consolidation, review meetings, audit committee and board. Share it well in advance, including with the auditor.

2. Close Sub-ledgers Early

Receivables, payables, inventory and fixed asset sub-ledgers should close within the first few days of the new quarter, so the general ledger can follow.

3. Reconcile Continuously

Bank, intercompany and control account reconciliations done monthly, not quarterly, leave little to catch up at quarter end.

4. Standardise Subsidiary Reporting

Give subsidiaries a standard reporting pack, with fixed deadlines and intercompany confirmations built in. Late or inconsistent subsidiary data is one of the biggest causes of delay.

5. Agree Intercompany Balances Before Quarter End

Confirm intercompany balances a few days before the quarter end, so eliminations don't hold up consolidation.

6. Prepare Estimates in Advance

Provisions, fair value measurements and other estimates can often be prepared on data up to the penultimate month, then updated, rather than started after quarter end.

7. Keep a Variance Commentary Ready

The reviewer will ask why revenue, margins or costs moved. Preparing explanations of significant variances alongside the numbers saves days of back-and-forth.

8. Share Information With the Auditor Early

Tell the auditor about significant transactions, new contracts and changes in estimates during the quarter, not at the end. Surprises slow reviews down.

9. Automate the Repetitive

Standard journals, reconciliations and reporting templates can often be automated in the accounting system or with simple tools.

10. Review Every Quarter's Close

After filing, list what caused delays and fix one or two things each quarter.

Getting Help

Think Filing helps listed companies and their subsidiaries tighten the quarterly close, from reporting packs to consolidation.