Transcription
Do you feel anxious and overwhelmed during month-end close, buried under endless spreadsheets and last-minute reconciliations? I’ve been there.
Today, you’ll discover 10 strategies that'll turn your close from a hectic marathon to a smooth sprint, so you can reclaim your time and peace of mind. I’ll show you how at my company, we slashed our month-end close from a whopping 14 business days to just 5, using these 10 strategies. Let’s jump in!
Start with streamlining processes for a faster close! For instance, if Jane from accounts payable follows a different process than Mike from the same department, things can get messy. By standardizing, everyone knows their roles, ensuring smoother transactions.
Automation is the future! Let’s say you manually enter invoices. Now imagine having software that scans and records them instantly. You save time and bid goodbye to manual errors! Use tools like Zapier to connect various data points so they can speak to each other, removing manual data entry.
Routine reconciliations are a lifesaver. For instance, by checking bank statements against your records weekly, you won't face a pile of discrepancies at month's end. The same principle applies to General Ledger reconciliations.
By the way, if you don’t know me yet, I’m Nathan Liao, aka CMA Coach. I help accounting and finance professionals like you pass the CMA exam in 16 weeks and on the first attempt. Start by downloading my free CMA exam cheat sheet. The link is in the description.
One source of truth is crucial! If sales data is in one system and expenses in another, consolidating becomes a nightmare, which painfully extends the month-end close process. Centralize for smoother operations.
Remember, not all tasks are created equal. For instance, if closing out large vendor payments impacts subsequent tasks, get them done first. Balance tasks. If Sarah is managing both vendor payments and payroll, while Tom is just supervising, redistribute to enhance efficiency.
Month-end close is a team sport. Everyone needs to chip in and help during this critical time for a faster close. How long is your current month-end close? Let me know in the comments. I'm curious to know.
Constant updates are vital. If the sales team closes a massive deal, the finance team should be in the loop to anticipate cash flow impacts. In my company, we use tools like Slack and Trello for real-time updates and communication.
Unexpected roadblocks? Plan for them. Say an employee goes on sudden leave during month-end; having a backup can ensure the process doesn’t stall, especially during month-end.
After each close, have a feedback session. If invoice approvals took too long this month, brainstorm ways to speed things up next time.
As a quick reminder, download my free CMA exam cheat sheet in PDF format. It’s packed with the 9 best strategies to ace the exam. The link is in the description.
Equip your team with what they need. Perhaps John is slow with reconciliations because he’s unfamiliar with the new software. Regular training sessions can bridge such gaps, and empower every person on your team.
The Chief Financial Officer is ultimately responsible for the company’s close. It’s a rewarding role, and if you want to become the CFO in your company, watch this next video.