Why You Need a Month-End Close Management Solution
Our figures estimate that over 50% of medium to large enterprises are still operating a manual month-end close. The reality is that the current close at these organisations includes labour-intensive activities that still rely on disparate checklists, decentralized departmental communications, long email chains, endless status meetings and tedious reconciliation processes.
Close Management solutions are available. This kind of software is designed to ease the month-end close by enabling accounting departments to close the books in an automated fashion. This helps reduce time in closing, mitigates errors and makes financial reporting more accurate and effective.
Implementing a close management solution is far simpler than an ERP implementation because the new system leverages existing tools and systems. When considering this kind of implementation, the areas below are the key points that will be affected.
Digital General Ledger Reconciliations
Manual reconciliations is a time consuming process. When mixed with shaky spreadsheets the process becomes error bound at the same time. Automation offers both improved accuracy as well as time-saving. It streamlines and structures data actions and hardens the recon process. Close systems like GreenLine offer tools that enhance reconciliation automation.
Less Errors and More Accuracy
Close management software removes spreadsheet risks and implements automated functions, which reduces the chances for of human error. Audits can also be more systematically completed. The overall effect is to allow financial oversight staff more time for analysis and review.
Close management software focuses close activities into single system, with a dashboard overview of ongoing processing. Tasks are grouped by preparer and checkers are automatically notified when they have tasks in their queues. All data is shared in real-time. All uploaded supporting documents are centrally available and are searchable and rapidly accessible.
Financial data of this nature is not always approved for cloud deployment by certain corporate customers. In cases like these, it is important to source a close software vendor who supports on-premises deployment (as GreenLine does).
Close management software creates a 'gathering place' for all accounting staff who are working on the close. This unites staff at all levels across company and regional borders. They feel part of the team no matter their individual roles in the close process and feel that they are part of the close process.
Close management software allows rapid access to required audit documents and historical data. Auditors (both internal and external) can spend more time working on audits rather than digging through archived documents, which assures an increase in audit quality and volume.