Insight

Achieve a virtual close

A structured approached that trains and prepares teams to close virtually.

Ron Walker

Ron Walker

Finance Transformation Service Network Lead, KPMG US

+1 858-750-7057

Jim Murphy

Jim Murphy

Principal, Finance Transformation, KPMG US

+1 408-367-1603


Without notice, your team is working in a different world. Closing the books with a remote workforce requires careful, but quick planning.

KPMG has devised a four-phased approach to maintain business continuity during the months’ end closing process. Even in these trying times, with careful planning and KPMG’s approach, your team can be ready for a virtual close.


 

Phase 1: Rapid on-boarding

Timing: 1 week

Assess the business need, skill-sets, and levels to identify and on-board resources

  • Confirm scope around close activities
  • Develop service delivery model
  • Establish governance protocols
  • Build close support roadmap and timeline
  • On-board team members and grant access
  • Global scale and service delivery protocols

Phase 2: Train and assimilate

Timing: 1-2 weeks

On-the-job training and rapid resource deployment – 100-percent shadowing of work hours and global support model across all regions and geographies

  • Rapid shift to a 100-percent remote close process requires realignment of people and skill-sets
  • Conduct a thorough evaluation of the financial close and reporting process
  • Leverage expertise and clustering excellence, both internally as well as with external resources
  • Communicate and align with your auditors to re-confirm key materiality and journal entry thresholds, to support process efficiency

Phase 3: Quality close

Timing: 3-12 weeks

Embed resources as a part of the Controllership teams, provide hands-on accounting, reporting, close, technical accounting, project management office, communication, and finance transformation support

 

  • Begin migrating to a "hard" M1 and M2 close to support close process discipline throughout the year

 

  • Deliberately focus on: Efficiency, Cycle Times, Quality and Accuracy of Data, Coordination and Timing Across the Globe, Business and Information Technology
    Controls and Removing Complexity

Phase 4: Stabilize

Timing: 1-3 months

Monitor and confirm that services and quality have stabilized and operationalize close governance processes

  • Operationalize new close governance processes and monitor to confirm that services and quality have stabilized
  • Develop and communicate a “Remote Close Calendar”
  • Define clear ownership of tasks based on the new “remote close calendar”
  • Track the “Remote Financial Close Scorecard” with the focus on key metrics that are of critical importance in this new environment