Close the month faster

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.

Process

Inconsistent processes

Uncoordinated approach

Superfluous activities

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

Technology

Excessive use of spreadsheets

Use of too many systems

A lack of integration and much manual data processing

Poor use of current systems

Organisation

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.

Standard process

We are 100-metre champions in building the purely practical infrastructure needed to support Finance. This involves digitalisation and system support - i.a. for financial standard processes such as the closing process.

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.

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