Simplify Your Month End Close Process with These 10 Easy Steps

Automation software like SolveXia can also automate your approval processes to reduce bottlenecks and delays. Having to manually locate, combine, and adjust data results in wasted time that could otherwise be spent performing high-value and analytical tasks. If transactions are not matching, then you have to perform account reconciliations to figure out the reason and make amendments. With an automation tool like SolveXia, you can run account reconciliations more frequently, which can help to spot potential fraud earlier and nip it before the situation worsens. Begin by checking every transaction for the period against external statements.

Reconciling accounts payable and accounts receivable in this way is also known as the accruals process, as dictated by accrual-based accounting principles. Other than the sizable amount of work to do, managing the process and data make this procedure even more challenging. The number of reconciliations to finish, checklists to complete, documents to gather, and schedules to meet are substantial. Throughout the process, it will be difficult to see what’s finished or whether there are still adjustments to be made. Automation software gives these teams awareness of financial activity throughout the firm, giving them a chance to provide input for purchasing decisions early on.

Streamline your month-end close process with this expert-built checklist

One example of this is integrated payments software, which allows you to process payments directly from your accounting system. This means you can automatically post incoming cash to its corresponding invoice(s) as it comes in, saving you the task of doing this come month end. But again, with automation solutions, you can surely expedite the timeline as the manual work is performed automatically, thereby saving a lot of time. Beyond collaboration and transparency, automation tools also offer visibility into insights.

As you may know, or can guess, this could end up taking days or even weeks. Instead, you can utilise an automation solution that can perform the data collection for you. Solutions like SolveXia can connect to your existing tech stack and pull information from disparate sources, so you don’t have to spend time on this meticulous task.

What should your month-end reports contain?

Incorrect recording of data, expenses not captured, or captured expenses coded incorrectly are potential problems from a poorly designed process. Without the ability to capture accurate financial data, you won’t deliver reliable reports in a timely manner. Difference Between Bookkeeping and Accounting Examples Although this is covered in the earlier steps, it is still important to mention it. Ensure the entries you made in your books correspond to the financial statement. You can reconcile your accounts with the aid of accounting software like Xenett.

Guide your business with agility by standardizing processes, automating routine work, and increasing visibility. Standardize, accelerate, and centrally manage accounting processes – from month-end close tasks to PBC checklists – with hierarchical task lists, role-based workflows, and real-time dashboards. The accounting close process is important because it provides an insight into the financial health of the company.

How to streamline the month end close process?

You organize, reconcile and report the financial activities of your company for that month. The month-end close procedure aids businesses in making better financial-based business decisions. Additionally, it can offer guidance on setting long-term objectives. By removing potential fraud and disasters, you can maintain your readiness to strengthen your business. Because it takes time and effort, the https://simple-accounting.org/small-business-guide-to-retail-accounting/ can be stressful. As previously stated, accounting professionals are highly occupied during the month end close.

• But trying to chase down updates in Slack messages, via email, or in person can slow you down.
• With the right procedures, documentation, and tools, your monthly close can go from stressful and chaotic to simple and consistent.
• Over 50% of companies report that their month-end close process takes two to three weeks to complete.
• Creating a documented system is vital to streamlining the month-end close process.
• The team must manually upload data to the accounting system for the accounting department to process month-end goals.

During your month-end close process, you need to reconcile all of your accounts. To do this, match your records to your account statements from outside entries, such as the bank. Make sure your records for the month are accurate by performing a bank statement reconciliation. If you want to learn more about how Mosaic helps finance and accounting teams assume a more strategic role in the business, reach out for a personalized demo. Or, download this month-end close checklist template and put yourself on the path to a 5-day close. Continuous accounting practices, also called continuous close, distribute the workload of the month end closing process across the whole month.