Let’s face it; most accountants may differ on a lot of topics, but most of them agree on one daunting concept, the Month-end close. A survey shows that 82% of accountants perceive a month-end close exercise as one of the most horrific accounting profession experience. Well, this is not a good number from such an illustrious career. If you are in this position, there is something you can do to make a financial finish more comfortable.
But first, let’s assess the reasons why this financial close is not an exciting task anymore.
Well, if Your Business uses NetSuite products, then probably the accounting process is easier and faster. However, there is only a limited number of things that NetSuite can handle. The rest, such as recording and tracking of the workflow are beyond the reach of NetSuite hence making the financial close a hassle.
Another reason why financial close is less impressive nowadays is because the sharing of files over the local drive has been disorderly, and no procedure is recorded. Further, the schedule at work place becomes tight and no one is minding about the validity of the information being shared. Most errors that would have been corrected earlier are identified during the month-end close.
How to Alleviate Stress
The monthly closing has had some bad effects on the employees, which most certainly calls for eliminating the process and adopting these four hacks.
1. A Collaborative Financial Close Checklist
A checklist monitors employees’ roles and performances, For example, each individual will be aware of what they need to do during the accounting process. On the other side, employers will also have an idea of the possible limitations to employees’ goals.
At first, you may think that your company could have gotten all the above through NetSuite’s End Close Checklist, but it is a misbelief. For example, imagine NetSuite Checklist as a 30,000-foot view allowing you to check a box next to an AP. By checking just a single box, it means that there are several process that are involved before concluding just one box in the list.
Also, Excel and Google Docs could easily track sign-offs and tasks, but this process would be challenging for a new team. Noteworthy, FloQast has capabilities that could easily provide outstanding services to the other accounting teams in the mid-market.
For example, Stack Overflow saw the potential in the checklist. The training and networking company used this collaborative checklist structure to create a better close list considering they previously used a soft-close system that was quite skeletal. Their new close list had timelines, controls, clearly defined processes that smoothened the closing process, cutting the monthly close by twelve days. Previously, they closed after 22 days, now with only ten days of time and resources conserved!
2. Create More Standard Folder Structures and Reconciliation Templates
Having a standard template allows your team to make the review, training, reconciliation, and auditing processes sleek. All you need to do is to paste work on a template automatically hence avoiding any repetitions. Further, it is easy to access a file because your company has now developed a more organized folder design.
Therefore, your accounts department needs to pay a closer look at NetSuite’s Fixed Assets and Bank Reconciliation Module for any huge transactions that require clearance. By automation of this process of reconciliation, you can reduce by half time spent on reconciling large accounts.
3. Examine the Mix of Your Talent Again.
Tech is taking over accounting and finance processes. Therefore, Your Business needs to shift to professionals who can use technology by creating an IT department. Also, watch out for employees with NetSuite or Cloud ERP experience and assign them roles which match with their skillsets.
4. Adopt Cloud Accounting Technology
Cloud platform adoption can turn around the way Your Business stores data. With cloud accounting technology, access to data will be more comfortable and quicker. Moreover, you don’t need to worry about documents, considering they are already online and more transparent.
Your Business can start cloud accounting technology by having a Microsoft checklist on Microsoft’s OneDrive or SharePoint. The main use of an immediate management software solution is to monitor review notes, reconciliations, and check the listing of items like RevLocal.
There is no doubt about what NetSuite can do. It can do Accounts Payables and Receivables, bank reconciliations, and revenue recognition. However, your accounting team has to do things like tracking workflow and documentation with more scalable software.
In a nutshell, there are a lot of things your company could benefit from a streamlined close process. For instance, if your company uses cloud accounting tech, it will reduce the intimate process by about three days. At Seibert Consulting Group, we give precise and acurate solutions that match Your Business’ needs. Contact us today at hello@seibertconsulting.com or 760-205-5251
FAQs
Why is it important to maintain your accounts and segments for a stress-free closing process?
1. How can automated financial management systems from SunSystems and NetSuite assist in closing more quickly and accurately?
SunSystems and NetSuite offer automated financial management systems that can help finance teams close more quickly and accurately, thus improving efficiency and reducing errors in the closing process.
2. How can following certain steps help avoid problems and reduce stress during the closing process?
By following specific steps outlined, finance teams can avoid problems and reduce the stress and time associated with closing at the end of every month.
3. What percentage of finance teams achieve an early close for month-end processes?
44% of finance teams complete month-end on day 5 or before, indicating that achieving an early close is possible.
4. How many finance teams complete month-end closing by day 5 or earlier?
In our survey, we found that 44% of finance teams complete month-end on day 5 or before.
Why is it important to maintain your accounts and segments for a stress-free closing process?
Maintaining your accounts and segments is crucial for a stress-free closing process. For instance, according to our recent findings, a significant 44% of finance teams successfully wrap up month-end procedures by day 5 or even earlier. This statistic underscores the attainability of an early close when diligent account and segment maintenance is in place. By adhering to these key steps, your team can sidestep potential issues and streamline the closing process, ultimately reducing stress and saving valuable time each month. Be sure to explore how our automated financial management systems, such as SunSystems and NetSuite, can empower your team to achieve quicker and more precise closing outcomes. Embracing automation and leveraging tools like NetSuite’s Fixed Assets and Bank Reconciliation Module can significantly cut down the time spent reconciling large accounts, paving the way for a more efficient and stress-free closing process."
How can you spread tasks throughout the month to avoid feeling overwhelmed during month-end close?
By spreading tasks throughout the month, you can avoid feeling overwhelmed during the month-end close. One way to achieve this is by implementing a collaborative financial close checklist. This checklist allows employees to monitor their roles and performances, ensuring that each individual is aware of what they need to do during the accounting process. Employers also gain insights into potential limitations to employees’ goals. Additionally, creating more standard folder structures and reconciliation templates can streamline the review, training, reconciliation, and auditing processes. Automation of reconciliation processes for large transactions can significantly reduce the time spent on reconciling accounts. It is also essential to examine the mix of talent within your team and shift towards professionals who are proficient in using technology. Adopting cloud accounting technology can revolutionize the way your business stores data, providing easier and quicker access. By utilizing cloud accounting tech, you can reduce the month-end close process by approximately three days, leading to more efficient and organized financial operations.
To further enhance your task management during month-end close, consider breaking down your monthly responsibilities into smaller, manageable chunks distributed throughout the month. Start by preparing routine journals in advance and fine-tuning them as the month progresses. Closing low volume accounts early not only eases the workload but also helps in identifying potential risks that can be addressed proactively. This approach allows you to address issues gradually, rather than waiting until the last minute when it may be too late. By incorporating these practical steps alongside the technological advancements mentioned earlier, you can create a comprehensive strategy for a smoother and less stressful month-end close process."
Why should you cross-train staff on critical tasks for a smoother month-end close?
Examine the Mix of Your Talent Again.
Tech is indeed revolutionizing accounting and finance processes, prompting a crucial shift towards professionals adept at leveraging technology. To align with this transformation, Your Business ought to consider establishing a dedicated IT department. Furthermore, it’s prudent to identify employees possessing expertise in NetSuite or Cloud ERP systems and assign them roles that capitalize on their specialized skill sets. By ensuring your team is equipped with the necessary technological proficiency and strategic talent allocation, you pave the way for a more streamlined month-end close, bolstering operational efficiency and adaptability in an ever-evolving landscape."
Why should you automate processes for a stress-free month-end close?
Your page provides the following comprehensive explanation on why you should automate processes for a stress-free month-end close:
"Automation of processes for a stress-free month-end close is essential because it streamlines the accounting process, reduces errors, and saves valuable time and resources. To close the month easily, you should have a documented process to follow. This allows your team members to allocate their time and energy towards getting everything done. By adopting collaborative financial close checklists, creating standard folder structures and reconciliation templates, examining the mix of talent within your team, and embracing cloud accounting technology, your company can significantly ease the burden of the month-end close. Whenever you can, automate workflows, especially if it means reducing a significant amount of time. If you’re repeating the same task over and over again, you should seriously consider if there is a way to create a system that automatically completes that task for you. Integrations, bank reconciliation, invoice entry, recurring journals can become simple with the right system. Automation allows for smoother workflows, quicker access to data, and improved transparency, ultimately leading to a more efficient and effective financial close process.""
