soft close

Definition

A preliminary month-end financial closing process that produces rough numbers quickly, allowing management to see how the month went before accountants spend weeks perfecting every accrual. It's the financial equivalent of a rough draft.

Example Usage

The soft close showed revenue was down 15%, giving executives the weekend to prepare their excuses before the board meeting.

Origin

Management accounting practice developed to accelerate financial reporting

Fun Fact

Some companies have 'hard soft closes' and 'soft soft closes,' creating a terminology problem that perfectly captures corporate inefficiency.

Source: Management accounting and financial reporting processes

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