Month-End Close in 6 Days: Why It Matters (and How to Get There)
By Kirk W. McLaren
A faster close frees Finance to drive decisions instead of reporting history. Top performers target 3–6 business days; small teams often aim for ≤10.
Why CEOs Should Care About Close Speed
Most CEOs don’t spend much time thinking about how many days it takes to close the books. They just want numbers they can trust. But here’s the problem: when Finance spends two or three weeks reconciling last month, that’s two or three weeks they aren’t helping you make this month’s decisions.
That’s the void I wrote about in The Growth CFO Void: finance stuck in the past, reporting history instead of guiding the future. A slow close is one of the clearest symptoms.
What “Good” Looks Like
The American Productivity & Quality Center (APQC) benchmarks thousands of finance teams every year. Their data shows:
World-class performers close in 3–6 business days.
Median performers close in 10 days or less.
Many mid-market firms? 15+ days.
That gap matters. Deloitte research points out that every extra day in the cycle costs leadership valuable time to interpret results and adjust course.
Think about it: if you’re 15 days into the month before you even see last month’s numbers, you’re already playing catch-up.
The Real Cost of a Slow Close
It’s easy to dismiss the close as “back-office work.” But the opportunity cost is real:
Leadership blind spots. Without timely reporting, you’re running on instinct instead of insight.
Missed interventions. Margin leaks or cash shortfalls go unnoticed until the window for correction has passed.
Talent drain. Finance staff burn out chasing pennies instead of contributing to strategy.
One $20M firm we worked with was consistently closing around day 18. The CEO admitted, “By the time I saw the numbers, half the month was gone.” Once we restructured their process, they were closing in six days and using the extra time to run weekly performance reviews instead of arguing about reconciliations.
How to Get to Six Days (or Fewer)
Speed comes from design, not heroics. Here are the practices that consistently move firms toward world-class:
Standardize entries and reconciliations. Create templates for recurring journal entries. Make sure every reconciliation has an owner and a deadline.
Automate the routine. Bank recs, high-volume GL accounts, and intercompany eliminations should run on autopilot with modern tools.
Use pre-close checklists. Run a “soft close” mid-month to surface issues early. Apply materiality thresholds—don’t chase a $27 variance that doesn’t matter.
Template the management pack. Deliver the same P&L, balance sheet, cash flow, and KPI views each month so leaders focus on the story, not the format.
PwC notes that top-quartile finance teams spend 20% less time on transaction processing and 30% more on analysis than peers. The difference isn’t talent—it’s process.
The Funnel That Matters
I often draw this for clients:
Transactions → Close → Decisions.
The faster and cleaner you move through the funnel, the more time you have at the bottom—where decisions get made.
And remember the APQC benchmark: 3–6 days = world-class.
Final Thought
Closing the books faster doesn’t mean cutting corners. It means freeing Finance from firefighting so they can contribute where it matters—helping you run the business.
The difference between a 15-day close and a 6-day close is the difference between Finance being a scorekeeper of the past or a partner for the future.
