Do you have the same Month-End bottlenecks as your peers?

In Business Management Software, Process Improvement by Sophie Galtress

Reading Time: 4 minutes

Are you worried that your Month-End close is taking longer than your peers?

Closing the books for many businesses can sometimes feel like an extreme sport. For nearly 60% of organisations, the close process takes over a week, which delays access to reliable information vital to business direction.

The big reason why it can take so long is that:

  • There’s not enough automation
  • No real-time data
  • Lack of processes
  • Complex Excel Spreadsheets

It won’t come as a surprise that manual tasks do slow down the close time, and can lead to businesses making bad decisions based on stale information.

Have you ever wondered how much these manual tasks actually slow down the close?

In our Close the Books Survey, those impacted by spreadsheet manipulation close the books in 11 days, whilst those slightly impacted close the books in 7 days.

Also, those minutes spent on each manual data import or export add up and contribute to a slower close. Those impacted by manual data imports and exports close the books in 12 days. Whilst those slightly impacted close the books in 9 days.

It’s not a secret that accounting and finance teams need access to critical data from across the organisation to be able to make those important business decisions. But the time they spend waiting around for information from different areas within the organisation can impact them dramatically. When these teams are connected through the cloud, the data is real-time and accurate, allowing finance leaders to make better and more informed decisions.

It’s been found that 58% of respondents from the Close the Books survey, currently use a cloud or hybrid accounting system. 70% are planning to move to the cloud, which is up 27% from the year before and likely driven by the pandemic.

The top reasons that these organisations move over to the cloud are because of better reporting, high availability, lower cost, and increased security.

When the survey examined the impact of COVID-19 on organisations, those who were already sitting on the cloud had a leg up when transitioning to a remote close. These cloud-based organisations were able to maintain access to their data and continued to operate without falling behind the competition.

The big key takeaway is that automation enables organisations to be more strategic. Automation is one of the biggest reasons why your close time is taking too long. Respondents who automate under 50% of their journal entries close the books on average in 10 days. Those who automate more than 50% of their journal entries close the books 20% faster—closing in 8 days on average!

So by automating your close process, it frees up time for your teams to spend less time putting together the numbers, and more time on analysis and strategy!

Did you know that 74% of mid-sized organisations take over a week and between two and five staff members to coordinate their month-end close?

Ridiculous isn’t it. But did you know that with Sage Intacct, you can reduce your close time by up to a whopping 79% so you can get your life back!

“Sage Intacct helped us cut our monthly close in half, allowing me to free up 50% of my time from day-to-day accounting tasks for more forward-looking business analytics, improving cash forecasting, and increasing budget accuracy by 10%.”
John Kalinowski / Alder Partners, LLC

This visionary and award-winning software automate those tiresome finance processes so your reporting is real-time and accurate.

Whether you spend your time working on complex company consolidation across multiple entities or manually post accruals and recognition journals, Sage Intacct can help you automate and streamline these processes.

Sage Intacct also helps with:

  • Automating your revenue recognition postings
  • Auto allocate values across nominals and dimensions
  • Automatically consolidate hundreds of entities within minutes
  • Real-time data feeds with a world-class API
  • Real-time and on-demand reporting that gives you instant visibility

Reduce your month-end close time

We recently did a live session over on our LinkedIn and YouTube for Reducing your Month-End Close! Our Managing Director, Hannah Munro talks about how you can reduce your month-end close!

The topics include:

  • Stats around typical close times
  • 4 steps to improve your month-end close
  • Using timeline mapping to understand your current close process
  • Common month-end bottlenecks
  • Where you should be focusing to improve your close process

If you would like to watch the Financial Transformation Live session, you can watch it here!

If you would like to learn more as to how Sage Intacct can help you speed up your month close process, you can sign up for our upcoming webinar, ‘Shift to a Continuous Close with Sage Intacct’, taking place on the 16th March at 10am – 11am. We’ll be exploring how Sage Intacct can help you move away from a clunky, long month-end process to a continuous close.

Don’t hesitate to contact us should you have any questions or queries. You can email us at info@itassolutions.co.uk, or alternatively give us a call on 01824 780000.