The fast closing of books is one of the main objectives of the finance department as it means that their process is optimized and cost-efficient. Still, despite the aim of closing the books faster, the finance department must ensure the accuracy of the information on business performance and ensure compliance. Hence, how should enterprises attain faster closing of books while not compromising the integrity and accuracy of information regarding business performance?
Below are five tips for organizations to achieve faster closing of books:
1. Integration of accounting data across the company
Organizations have been using spreadsheets, especially for making a financial report. Although useful, however, it has its limitations, such as it cannot detect errors in the data input, which could lead to delays in closing the books as such error would be identified later into the accounting process. Thus, financial software can be a cost-efficient alternative as it allows automation of the collection and consolidation of your data from general ledger systems, ERP systems, or Excel Spreadsheets to have more accurate and traceable information.
2. Smart workflow
One of the hindrances to achieving faster closing of books is delays on the deliverables of finance officers. So, an improved workflow can help the organization avoid this obstacle. And this can be achieved by having financial software that allows organizations to have more transparency on the bottlenecks in the accounting process. Moreover, the software will give the company a view on the pending tasks and the corresponding people responsible, task status, and remarks.
3. Collaboration across the organization
To attain faster closing of books, members of the organization must collaborate. Through this, there can be double-checking of accounting data that ensures its accuracy. Moreover, collaboration ensures that there is compliance with the accounting regulations. And with financial software, collaboration across organizations becomes easier. Furthermore, the software allows employees to send their output for approval and checking. On the other hand, the approver can make changes and remarks, and the software automatically highlights these to make it easier for the employee where to focus their energy and effort on working.
4. Automation of some financial activities
With this rather than accumulating the work for the month, quarter, or year-end, closing of activity can be regularly. Financial software enables seamless integration with ERP and line of business systems; thus, it becomes easier for the finance department to determine the accounts payables and accounts receivables of the organization. Also, the software will make it easy to handle and convert currencies, do aging calculations to calculate the aging of invoices, which could take much time if done manually.
5. Establishment of accounting data consistent with a standard chart of accounts
Companies may have multiple accounting systems, especially large ones, to ensure compliance of regulations of different geographical areas where units of the organization are. Still, they must have a standardized set of data across the organization. And with the assistance of financial software, it ensures frictionless integration with the general ledger to enforce the Chart of Accounts (COA).
Tips above are just a few of the many which can help organizations improve their accounting process. Some enterprises may feel hesitant to try out financial software, but they can be beneficial in their journey towards faster closing of books. Moreover, financial solutions like Performance Canvas Financials offer organizations a unique opportunity to try out the solution first to see whether it can help achieve their objective of a faster process to close their books. Less talk and more action for those that need to be convinced of its value. Visit www.performancecanvas.com for more information.