Month-end closing - Why you should focus on the process
A number of challenges affect the use of resources and the time spent on month-end closing in many Finance functions. In these cases, the quality of the deliveries also varies - and, in the worst case, this may result in organisation's taking no or wrong decisions, which is an important reason to focus on improving the month-end closing process.
Slow and resource-demanding closing processes are often characterised by one or more of the challenges below, which will, ultimately, often affect the quality of the reporting.
Many manual work processes
A lack of defined procedures
Risk and control
Too much control or the wrong control
Too much confidence in detective controls
The timeliness of the controls
Excessive use of spreadsheets
Use of too many systems
A lack of integration and much manual data processing
Poor use of current systems
Blurred roles and responsibilities
Involvement of the wrong/too many persons
A lack of educational competences
A lack of leadership
Optimisation is the way forward ...
A faster month-end closing process is usually accompanied by higher quality of both the monthly accounts and the reporting. In our experience, the way towards a faster month-end closing process is optimisation of one or more factors, such as policies, procedures, processes, and IT systems as well as clear roles and responsibilities. Our experience points to four areas in which it would be particularly beneficial to act when it comes to impacting the quality, the use of resources, and the time spent on the month-end closing process: process management, reports, data quality, and controls.
Our solution must match your needs
At Basico, we have a fast close framework that helps you focus on your month-end closing process. Our involvement in the project may vary from a quick assessment to an implementation project. There are many options! What is decisive is that we find a model that matches your business and your needs.