Deep flaws in month-end reconciliation processes create distrust in finance departments in the U.S. and Europe, leaving only 28 percent of respondents willing to trust the reported numbers, according to a new survey of financial professionals.
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Only 28 percent of the 300 finance professionals surveyed by software developer Adrra Match said they trust the reported numbers. Managers, such as CFOs, controllers and finance directors, indicated that they trust their numbers at a much higher rate (30 percent) compared to their staff (15 percent). But 90 percent of the survey respondents said they felt under pressure to close faster. Only 39 percent said they are satisfied with the quality of the closing process.
The survey also uncovered some differences between the U.S. and Europe. In the U.S., 34 percent of the finance professionals surveyed said they trust the reported number versus 23 percent in Europe. While trust is higher in the U.S., two-thirds of the respondents said they don’t trust the numbers.
In the U.S., just over half of the respondents (53 percent) close their books within six days, but 73 percent of European survey respondents in the study said they close their books on that accelerated schedule.
In the U.S., only 9 percent of the financial professionals surveyed said they have no second approver during the close process versus 19 percent in Europe, indicating that more American companies have tighter governance rules.
For more details from the survey, click here.