- Neha Verma
- 1019
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Banking and Finance
Image Courtesy: Unsplash
The month-end close process consists of tasks such as account reconciliation, journal entries, and financial reporting, all of which are required to achieve an accurate picture of business performance and ensure compliance. It is dependent on many people, technology, and processes; as a result, organizations face challenges such as inconsistent data and processes, as well as a lack of standardization.
The month-end close process can be time-consuming, with finance teams devoting considerable time and effort to what should be a streamlined operation. According to APQC’s General Accounting Open Standards Benchmarking survey, 25% of respondents require 10 or more calendar days to complete the monthly end-close process. When less time is spent on the month-end closing process, more time can be spent providing more strategic insights to business leaders.
When the month-end close process is having difficulties, it can be difficult to know what to do, and it may seem easier to do nothing and stick with their current situation, even if it is tedious and stressful. In this blog, we will look at some ways to improve your month-end closing process.
Improvements to Your Month-End Closing Process
Automate
Automation can improve the month-end closing process in a variety of ways, including increased operational efficiency, transparency, and speed. However, tasks are frequently delayed due to key person dependency or competing priorities. The best place to start when introducing more automation into your month-end closing processes is often with mundane, repetitive tasks.
Get Rid of Disparate Systems
If you are storing data on the incorrect platform, using too many disparate systems, or attempting to work around a platform that is not designed to do something, your month-end close may be delayed. Attempting to integrate multiple disparate systems and make them compatible with one another is not always possible.
With disparate systems, it is difficult to deliver real-time data, which is where standardization comes into play.
Make a Backup of Your Data
Aside from ensuring that your accounting systems are fully equipped and up to date, not having your data saved or backed up can cause another delay in the month-end process. A good rule of thumb to follow is to keep every transaction or important figure safe in the cloud or in a system that does not lose this valuable information. It is also a clever idea to make sure your online storage is regularly backed up and secure. The loss of critical data can lead to massive errors in figures that must be precise.
Get Real-Time Data
For those involved in the month-end close process, speed and accuracy are constant challenges. Many organizations are looking for information at a rapid pace. They must, however, be able to trust the data on which they are acting.
Many finance teams only have access to accurate data at the end of the month. Finance teams should not have to wait until the end of the month for access to numbers.
Maintain a Streamlined and Precise Month-End Close Process
Mistakes are unavoidable for everyone, but at times like the end of the month, they can be costly. Streamlining the month-end close process eliminates the need for time-consuming, manual processes or the risk of using inaccurate data.
Make the switch to an automated rebate management system today to ensure your finance team receives the most accurate data possible. Enable allows you to accelerate your month-end accounting and get on the path to profitable growth.
