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Key Takeaways
Month-end close—the two words that strike fear into the hearts of finance teams everywhere. It's a stressful, time-consuming, repetitive fire drill. From gathering data across systems and chasing down invoices to reconciling discrepancies and preparing journal entries—it can feel like a black hole of time and energy.
For many finance teams, it is a process rooted in outdated workflows–shocking since it is such a critical accounting procedure. But it doesn’t have to be this way; with the right tools and systems in place, the month-close process can feel like a breeze.
This guide will explore how to improve your month-end close process so you can spend less time chasing down journal entries and more time focusing on strategy. From how to implement a structured month-end close checklist to a breakdown of the top automation tools, this blog will help you take control of the process and ditch the late nights for good.
Let's start with the basics. Month-end close is the finalization of all financial transactions and reports at the end of each month. This process ensures that all journal entries are accurately recorded, accounts are reconciled, and financial statements reflect the true financial position of the company. It allows your company to ensure financial compliance, track performance, and analyze financial health with precision.
One big challenge finance teams face is the manual nature of many tasks. Manually entering data, reconciling accounts, and generating reports can be time-consuming and prone to errors. A tiny mistake can lead to confusion and frustration.
Another headache is the limited visibility into financial information. When data is scattered across systems or stored in paper documents, it's hard to get a clear picture of your company's financial health. Add to that the lack of clear and assertive communication between the team, and you have a real pain. Team members must have clarity on the responsibilities, deadlines, and sources of information to come out of this process on top.
This depends on your company size, industry, and how automated your processes are.
| Company Type | Average Close Time |
| Small business (manual) | 7–10 business days |
| Mid-market with partial automation | 4–7 business days |
| High-performing teams with full automation | 1–3 business days |
If your close still takes over a week, it's time to re-evaluate your systems. Delays not only waste time—they also impact decision-making, forecasting, and audits.
Finance leaders who prioritize automation are reporting closes in half the time, with far fewer errors and rework.
Improving your month-end close process offers numerous benefits for your business:
Streamlining your month-end close process means making it smoother and faster. It means going from manually entering data to leveraging technology to do it for you, like AI and Automation.
Streamlining tasks starts with identifying and removing bottlenecks. Here are 3 key steps you can follow to ensure a smooth and efficient month-end close:
Bonus Tip: Using AR automation software like Paystand can help you skip steps like manual reconciliation, reduce errors, and free up hours (or days) during the process.
If what you’re looking for is efficiency, start with these best practices:
We’ve talked about the importance of standardizing workflows and creating a recurring month-end close process flowchart. But you’re probably wondering what should be in it?
At a high level, your flowchart should include the following:
A well-structured flowchart helps your team stay aligned, avoid missed steps, and consistently close faster and more accurately.
Automating the month-end close process can be a game-changer for your finance team. One way to start is by investing in robust accounting software that offers features designed explicitly for month-end close procedures. These software solutions often have built-in templates, workflows, and scheduling tools to automate repetitive tasks like reconciliations and report generation.
Another key aspect of automating the month-end close is implementing workflow automation tools. These allow you to create standardized workflows for each step of the close process, from data entry to financial analysis.
Cloud-based solutions can further enhance month-end close automation. They offer accessibility, scalability, and security. With cloud-based solutions, your finance team can access financial data from anywhere, collaborate in real time, and benefit from automatic updates and backups. This ensures that your month-end close process remains efficient as your business grows and evolves.
The best software should do more than just organize tasks—it should automate them. Look for tools that:
Advanced tools leverage AI, machine learning, and real-time integrations to improve the close process radically. For example:
Measuring and monitoring performance during the month-end close process is vital for ensuring efficiency, accuracy, and compliance. Finance teams can identify improvement areas and optimize processes by tracking key metrics and indicators. Here's how to effectively measure and monitor performance at the month-end close:
By measuring and monitoring performance at the month-end close, finance teams can identify strengths and weaknesses, optimize processes, and ensure timely and accurate financial reporting. Embrace a data-driven approach and achieve excellence in your month-end close operations.
Paystand is built to eliminate the friction of traditional finance, and that includes the month-end close. Our platform goes beyond automation by delivering a fully connected, real-time AR management system that helps you close faster, with greater accuracy and less manual work.
With Smart Controls, you can set custom rules for payment routing, approval workflows, and exception handling, removing bottlenecks and enforcing consistency across your close process. Combined with automated invoice generation, payment collection, and reconciliation, your team can eliminate repetitive tasks and reclaim days lost to manual work.
Paystand also integrates directly with your ERP, enabling real-time data sync and removing the lag between payment activity and financial reporting. You get immediate visibility into cash flow, payment status, and AR performance—plus powerful analytics to spot trends and anomalies before they become issues.
Paystand’s fee-less B2B payments network lets you collect payments faster, lower costs, and reduce days sales outstanding—while maintaining cleaner books throughout the month. That means fewer surprises at close and more time focused on strategic finance.
Mastering the month-end close process is crucial for effective business financial management and business success. By implementing best practices and leveraging technology and finance automation, you can streamline your close process, improve accuracy, drive efficiency across your organization, and transform month-end close from a dreaded task into a manageable and even rewarding endeavor for your finance team. Download our free guide to choosing the best AR automation software and learn how the right solution can simplify your month-end close, accelerate cash flow, and eliminate manual work.
So, roll up your sleeves, embrace change, and make month-end close a stress-free operation that sets your business up for success.