Guide to a Stress-Free Month-End Close

Dec 13, 2022 by Sage Thee

Nobody looks forward to the month-end close. It’s stressful, exhausting, and — most of all — time-consuming. Accounting departments typically spend 36 hours manually reconciling payments every month. If there are any manual entry errors, discrepancies, or other issues, that time increases drastically.

Hours spent on reconciliation

In today’s fast-moving, digital world, there’s no need to spend eighteen days out of your year reconciling payments and transaction fees when software and alternative payment methods are available to mitigate that burden.

No business is best served by investing its staff’s valuable time in unimaginative, repetitive work. That’s why we built a platform that eliminates nearly 99% of manual tasks and processes.

Why Automation?

Automation streamlines your month-end accounting for a faster, more efficient close. Some key benefits your finance team can enjoy include:

  • Instant access to updated financial information
  • Easy discrepancies or financial troubles identification
  • Reduced chance of undetected errors
  • Standardized month-end procedures
  • Easily managed payment processes

A successful and timely monthly closing process makes it easy to see into cash flow for a specific business. Automated accounting software, especially for accounts receivable, is the first step toward a stress-free month-end accounting process. From bank reconciliation to generating financial reports, automation is the fastest and most cost-efficient way to a month-to-month accurate balance sheet.

How does automation streamline month-end close?

Automating core accounting functions eliminates the risk of manual error and shrinks your DSO, providing your business with a more robust bottom line. With an automated, faster, and more reliable billing and collections process, your accounts receivable becomes more efficient, reducing your workload.

Automation is king when it comes to increasing efficiency.

For example,
  1. You generate an invoice in your ERP of choice
  2. A workflow automatically emails it to your customer
  3. Your customer pays the invoice directly through an embedded payment link
  4. The payment is automatically reconciled in both your ERP and payments platform

With automation on your side, your accounting team is less stressed, and you’re happier with more detailed and precise information about your finances—the perfect win-win scenario.

The best way to get comfortable with automation is to adapt slowly to each process. We recommend starting with AR automation. After all, why not make it easier for your business to make money?

Put billing, payments, cash application, and reconciliation on auto-pilot for 50% lower AR staff costs

Automation takes care of:

  • Invoice creation and delivery
  • Payment reminders
  • Payment application and reconciliation
  • Reconciling bank statements
  • Updating the GL

And that’s only the beginning.

Headache Remedies for the AR Junkie

Don’t just take our word for it. Check out this on-demand webinar, where we chat with modern home management platform Thumbtack to learn how they cracked the code to increase the speed of payments and reduce their workload, resulting in:

  • 40% decrease in DSO
  • 98% reduction in write-offs
  • 87% reduction in manual effort

(Spoiler alert: the solution is automation)