Measures the time taken to complete the financial closing process at the end of a reporting period.

What it Measures ?

How quickly we finalize the month's accounts.

Relevant StakeHolders 

Finance Controller, CFO

In-depth Use Case / Real-world Example

Financial Close Cycle Time is the duration between the end of the accounting period and the finalization of the financial statements. For example, if a company’s accounting period ends on the 31st of March and the financial statements are completed by the 10th of April, the cycle time is 10 days. A shorter cycle time indicates efficiency in accounting processes, enabling timely decision-making and better management of the company's financial position. Reducing this time can also improve internal controls and ensure compliance with regulatory requirements.