We know that you’re all too familiar with the fact that managing your company’s finances is a never-ending, ongoing task. Your accountant is the unsung hero who supports you through all the ups and downs of your financial journey. But even the most experienced accountants face their own set of challenges, especially when it comes to the monthly close.
Follow along in our newest blog series as we explore the challenges and discover best practices for improving the process. From techniques for tackling issues head-on to tips for what not to do, we will walk you through the steps to create more efficient workflows and master the month-end close.
In this article, we’ve highlighted strategies to help reduce the time it takes to complete the close and free up valuable resources for your business.
The Month-End Close Takes Longer Than You Think
So, how long does the month-end close take?
It can take anywhere from 5-10 days, and businesses often need help expediting the tasks associated with the monthly close cycle. Several factors can drastically impact the amount of time needed to close the books, including:
- Company size
- Complexity of transactional data
- Incomplete or inaccurate data
- Reliance on manual activities
- Communication gaps
- Lack of collaboration
- Number of systems used for storing financial data
- Level of prior preparation
- Unexpected external events
Understanding the factors that impact the month-end close and how to streamline your process will help you create more efficient workflows and significantly shorten the monthly close.
Less Stress Leads to More Success: Why a Faster Monthly Close Is Key
Faster and more accurate closing cycles ensure your advisors, CFOs, and controllers have up-to-date financial data to base important decisions. Shortening the month-end close means the long nights, exhaustive calculations, and intense planning will reduce to a fraction of the original time, keeping workloads light and stress-free!
Here are some ways you can shorten the month-end close:
- Build a comprehensive checklist: A checklist is your roadmap to success. It will keep you organized and accountable during the accounting period and month-end close.
- Streamline reporting processes: Identify areas you can implement an automated solution that saves time and simplifies procedures.
- Regularly reconcile accounts: Instead of waiting until the end of the month, reconcile your accounts regularly. This speeds up the monthly close and keeps your figures correct and records up-to-date.
- Leverage cloud-based technology: Invest in an efficient and user-friendly accounting system with cloud-based capabilities to maximize data security, improve transparency, and increase month-end efficiency.
Mastering the Month-End Close With Modern Accounting Tools
Modern accounting tools like Sage Intacct can be a major advantage for simplifying the month-end close. It provides a well-designed, flexible, and secure platform that saves time and effort by automating tasks that would otherwise bog down your team’s productivity.
Leveraging this technology can lead to a faster and smoother month-end close, but working with a trusted accounting partner with a wealth of knowledge and expertise in your financial systems will set your business up for a successful future while reducing the burden of the month-end close.
Contact us today to find out how our services can shorten the month-end close and strengthen your financial operations.