Effective Ways to Improve Your Month-end Closure

Month-end closure is essential for a business because it impacts the financial decision-making of a company. Closing the books efficiently not only saves time and money but also increases the productivity manifold. However, this can be a challenging task for the finance professionals unless you take steps to improve the month-end closure.

Here are some effective ways to improve your month-end closure:

1. Standardizing your documentation process:

Standardizing your monthly allocations, repeat reconciliations and transactions is an effective way to outline the expectations and the deliverables for the employees. Furthermore, the standardized procedures pave the way to reporting more accurate figures, by communicating both inside and outside the accounts department.

2. Increasing your mid-month activities:

One of the common mistakes is to wait for the month-end to complete a task. Review the overall time required to complete each task, throughout the close to set up a timeline, with indicators of upfront success. Post-closure, review the management process again.

Also, try to track your business activities to determine what measures can be taken to close the activities before the month-end. Often, filing frequent reconciliations tends to decrease the review time, ahead of the closure.

3. Embracing automation technology:

When it comes to accounting, speed and accuracy are the two factors that determine the fate of a business. By automating your accounting activities, such as fund distributions, recurring payments, or account reconciliations, you can focus more on critical business tasks. With the best accounting services in Mumbai, you can improve your current operating models with better decision-making and understanding of the process.

To prevent inaccurate reports, it is always better to set up realistic expectations in terms of monthly closure. While it can be overwhelming to expect faster close times with immediate benefits, setting up a realistic timeline by reviewing individual losses or profits will encourage all team members to play an active role in the process. With the employees taking part in identifying the shortcomings and piloting the solutions, the month-end closures can be a collaborative effort.