month end close process

At month end, accountants face strict deadlines, made worse by having to perform repetitive, manual tasks to account for all transactions. This is problematic because when it comes to the month end close, getting it right efficiently and accurately is crucial. The most immediate benefit that you will recognise when implementing automation solutions like SolveXia is the reduction (and even elimination) of tedious manual tasks.

So it looks like your books are closed for the year, but this isn’t a formal close process. Anyone with access to your QuickBooks file can go in and change something in the previous month or year, and you might not find out until it’s time for your CPA to prepare your tax filing. For example, ask where you can implement automation software to speed up your processes. Finally, implement processes to ensure your accounting and finance teams have what they need.

AI-Based Collections Software Solutions

If you are one of those who worry about carrying out the close process, this guide is for you. You can prepare a month end close Difference between bookkeeping and accounting checklist based on the steps given. Follow this checklist, and the close process every month will no longer be troublesome.

More than 4,200 companies of all sizes, across all industries, trust BlackLine to help them modernize their financial close, accounts receivable, and intercompany accounting processes. To sustain timely performance of daily activities, banking and financial services organizations are turning to modern accounting and finance practices. The month end close can be strenuous and time-consuming, especially in large companies with significant monthly financial transactions. It can become overwhelming unless the accounting team has a well-designed SOP that can be followed.

Month-End Close Best Practices

Closing includes collecting all necessary information related to the accounts and reviewing them. It involves checking all income and expenses and comparing them with records. Your accounting and finance teams know the rhythm of the business, such as when vendors pay invoices and when your company pays their expenses (like software bills and salaries).

Accounts receivable is an area finance teams should especially focus on when seeking out improvements to the month end close process. AR is an area that’s typically wrought with manual, inefficient processes as it hasn’t received much attention. 69% of CFOs admit they’ve prioritized other departments ahead of AR for digitization. With the right procedures, documentation, and tools, your monthly close can go from stressful and chaotic to simple and consistent.

Final statements and reporting

These reports will help isolate revenue that can be accepted for the month, and sales that need to be pushed to the next period. Take your time to enter all bills or or deposits, and link them to an invoice. From there, address expense account items not attached to a bill or invoice. Lump sum items like Use Tax and employee credit card transactions, are filed into their appropriate expense accounts and will not have corresponding vendor bills. We like to allocate a healthy chunk of time to verifying each transaction is accurately inputted.

month end close process

With automation, you can also schedule tasks in advance based on dates, times, or triggering actions. You may be tempted to get things done quickly, but it should not be at the cost of accuracy. Try to stick to setting at least 10 days for the process, so you have a timeline to work by. Keep in mind that automation technology can expedite the entire process and maintain accuracy throughout it all.

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