How to Achieve a Painless End-of-Year Review and Closing
13. December 2016
At the end of the year, better to be ready for business contingencies. As companies work at reviewing and closing the fiscal year, missing relevant documentation might result in significant problems and consume unnecessary amounts of time. With these simple rules, we want to help you to have a painless end-of-year closing. Happy holiday season!
The end of the year typically means a time for reviews, many of which go under the name of “of the year”. To name just a few: FORBES has drawn the list of the “100 most powerful female politicians of the year”, with Angela Merkel and Hillary Clinton in the top two positions. Singer Taylor Swift has been nominated celebrity of the year. There is even a word of the year, attributed this year by Oxford specialists to post-truth, immediately followed by Brexiteer. In an early exercise of self-promotion, Time Magazine has named Donald Trump person of the year 2016. A Google search “of the year 2016” results in 3,890,000,000 entries, which gives an idea of how many categories there may be.
However, there are only so many categories you can think of, because probably, as a professional, the only “of the year” you are having to deal with this month is your company’s year-end closing. December adjustments, company reviews and even transactions are common. Don’t ask us why, but we’ve already heard of young analysts desperately googling “data room” as they were in charge of finding a provider and setting up a project – in two hours, on 23 December.
Although a two-hour deadline is cruel enough, a data room project can be organized and completed in record time, if you know how to do it – and we will make sure you will!
Find the Right Data Room Provider
There are many providers in the market, and each of them has strengths and weaknesses. What are your criteria for the selection of a provider? It can be pricing, ease of use, or security, for instance. Define the top criteria internally and then look for the appropriate service. Asking different providers for a demonstration is a great step to do – those who don’t answer promptly will just be singled out of your choice.
The central question is how long will it take to set up the project? You need to be able to buy and set up a data room quickly, therefore you should get rid of complex setup processes and be able to benefit from great customer service.
- Define the criteria the data room will fulfill
- Ask for a demonstration
- Buy as quickly as you need it
Setup of the Project
Starting a data room is like furnishing a new apartment: you have gotten rid of the superfluous pieces, and you want to have a functional space. Most of all, you know what you need beforehand. Data rooms should have a similar fate, in that you need the prior structure of the information. Some data room providers enable you to get rid of repetitive and time-consuming tasks, thanks to innovative self-learning technologies.
• Define which content is appropriate, possibly using a data room provided with content analytics and automated processes.
• Find an index (we offer two indexes as free downloads!)
Are you working with international partners in different languages? A real-time translation feature is a must.
Activate the Data Room
In a previous post, we helped you with finding a name for your project. Otherwise, try to be creative. In the end, before you upload documents, define the responsibilities. And finally, allocate permissions.
• Define responsibilities and workflows
• Upload relevant information
• Allocate and revoke permissions in a user-friendly way and get going!
Best Practice for 2017: Be Always Ready for Market Contingencies
Only by keeping your company documentation up-to-date in a secure storage solution, will you be bulletproof for any business eventuality, be it a sudden acquisition or sale, an audit, or an organizational change. Store your company information for the long term, thereby avoiding any end-of-year additional stress.
As the market shows high volatility, the forecast for the 2017 mergers and acquisitions market sees an increase in deal volume and speed, as well as a general fragmentation of the market. Actors multiply and opportunities grow, and general optimism counterpoints the low growth shown in 2016. Not adapting to changes of the market might result in losing competitive advantage.
In the stressful world of businesses closing their yearly budgets, you might even deserve the title of “problem-solver of the year”. Your organizational skills with choosing a digital data room may have saved the nerves of the entire management, as well as, perhaps, the company itself.