How financial automation can improve the month-end close
As the business grows, so does the complexity of its financial reporting and the month-end close process. As an accountant, you are well aware of the number of duties you must complete during the hectic month-end close. It can be time-consuming and stressful for accountants and bookkeepers. However, with the help of intelligent cleanup tools, you can quickly identify and eliminate errors, save hundreds of hours, and simplify the month-end close process.
In this blog post, we will learn about financial automation and how it may help you complete the month-end close procedure accurately and efficiently.
What is financial automation?
Financial automation refers to the use of technology and software to streamline and simplify the financial process, such as accounting, bookkeeping, invoicing, etc. It involves automating repetitive and time-consuming tasks, reducing the need for manual labor, and increasing efficiency.
Financial automation saves businesses time and reduces errors and potential fraud. Also, financial automation, such as robotic process automation(RPA), can automate data entry and reconciliation tasks.
Tasks that can benefit from automation
Even though it is a software technology, we may not expect the automation tool to automate everything. However, some crucial areas that are time-consuming and need much manual labor can be automated and expedited. These include:
1. Account reconciliation:
Automating the account reconciliation process can significantly reduce the time and effort required to reconcile accounts. It includes bank reconciliation and credit card reconciliation. The automation tool can instantly match transactions and find inconsistencies, flagging any anomalies for review. This procedure guarantees that account balances are correct and that any disparities are detected and handled as soon as possible, lowering the risk of errors.
2. Error finding in books:
Automation can streamline the error-finding process. The review and close management software can instantly fetch data and automatically find potential errors in your books using AI-based checks. It decreases the time and effort necessary to find errors manually. This procedure assures that your books are consistent, correct, and meet accounting standards.
3. Financial reporting:
Automation can help you prepare financial reports such as balance sheets and income statements, decreasing the time and effort necessary. The software may automatically generate reports by pulling data entered into the system. This procedure guarantees that financial reports are correct and timely.
4. Invoice processing:
Automation in invoice processing can dramatically reduce the time and effort required to match invoices to purchase orders and approve payments. This procedure guarantees that bills are processed correctly and on time, avoiding the possibility of errors and delays.
What to consider while choosing financial automation software?
Each business has its unique bookkeeping requirements during the month-end close process. Small firms have fewer duties to do than medium or large businesses.
So it would help if you considered some key factors while choosing the perfect financial automation software for your firm. Here are some key factors to consider.
1. Business need:
Since every business is different, you must think about your particular needs. Do you require software to automate the month-end close process? Think about the characteristics that are most crucial to you and your company. If you need software that can automatically detect errors while reviewing your books, generate intuitive financial reports, and makes client communication a breeze. In that case, you should consider Xenett without any second thought.
It's crucial to ensure the financial automation software you select is compatible with the other hardware your company employs. It will facilitate the data transfer and integration between systems.
For any business, financial information is crucial and sensitive. So selecting software with strong security measures to shield your data from online attacks becomes essential. Software with encryption, multi-factor authentication, and other security features is what you should look for.
4. Ease of use:
You should be able to utilize and navigate the financial automation software you choose efficiently. It needs to have an intuitive user interface that makes it simple and quick for you to carry out your tasks.
5. Customer support:
People prefer to avoid dealing with subpar customer service when they require assistance with financial software. When you are working on an important task and suddenly run into unforeseen obstacles brought on by technical difficulties, it can be frustrating. In these circumstances, you require immediate access to customer service. Choose software that offers trustworthy customer care over various channels like chat, phone, and email.
Finally, think about the price of the tool. Consider your budget and the value the tool will add to your business before choosing among the many solutions offered at various price points.
Benefits of using the financial automation tool for the month-end close process
The month-end close process can benefit significantly from using financial automation software. It helps you eliminate the laborious work and streamlines the month-end close process for productive outcomes. The advantages of using financial automation software for the month-end close are listed below.
- Increased efficiency:
Error finding, reconciliation, and generating reports are examples of manual, time-consuming operations that are eliminated through automation. By automating these processes, financial automation shortens the time and effort needed for month-end closing tasks. By speeding up the month-end close process, account teams can free up more time for analysis and strategic endeavors.
- Improved accuracy:
Errors and inconsistent results are expected in manual bookkeeping. With the help of automation tools, you can eliminate the danger of human error. Automation improves the dependability of financial statements by ensuring correctness and decreasing the need for time-consuming error repairs and redo.
- Real-time visibility:
During the month-end close, you can have real-time visibility into financial data and progress. You can track the progress of the tasks performed by your account team, spot bottlenecks, and act quickly to fix them. Because of this visibility, reviewers can make proactive decisions and have access to the most recent financial data.
The month-end close process can get more complex and time-consuming as firms expand. Financial automation can easily expand to manage more enormous data volumes, more entities, and more intricate operations. It allows for business expansion without necessitating a corresponding increase in physical labor, guaranteeing a seamless month-end close even as the business grows.
- Cost savings:
Automating repetitive processes lowers the demand for extra labor or outsourcing, which saves money. Organizations may do more with their current staff by efficiently automating processes and allocating resources. Furthering cost reductions minimizes potential financial losses or penalties due to errors and rework reduction.
- Employee satisfaction
By automating repetitive processes, practice owners can concentrate on more valuable operations like financial analysis, strategic planning, and process improvements. It improves job satisfaction while giving the account team possibilities for skill advancement and career advancement.
In a nutshell, the financial automation tool improves month-end close procedures through higher productivity and accuracy. Businesses can streamline their accounting operations and put themselves in a better position for success by utilizing automation tools.
The bottom lines:
Eventually, a financial automation tool is equivalent to discovering the key to a streamlined and effective month-end close procedure. It revolutionizes how accounting practices are carried out, leaving behind the time-consuming manual methods of the past with its strong capabilities and seamless connection.
Why not embrace the power of automation and take your financial procedures to new heights rather than settling for a time-consuming month-end close? Make the switch today to see the astonishing effect a financial automation tool can have on the performance of your business.
FAQs (Frequently Asked Questions):
Financial automation automates repetitive operations, including data aggregation, journal entries, and report preparation, decreasing manual labor and errors. It gives you real-time access to financial data, speeds up the closing process, and boosts overall efficiency.
Businesses can achieve faster and more accurate month-end closes by employing financial automation. Reduced cycle times, higher data accuracy, enhanced compliance, increased productivity, and better resource allocation are just a few of the primary benefits.
Yes, financial automation solutions are built to work with a variety of accounting systems, including ERP (Enterprise Resource Planning) software. They can gather data from many sources, consolidate it, and automate the required operations while connecting smoothly with the existing financial infrastructure.
Absolutely! Financial automation benefits businesses of all sizes, including small and medium-sized enterprises. It can assist small and medium-sized businesses in optimizing their month-end close procedures by eliminating manual data entry, decreasing errors, and freeing up important time and resources for strategic financial analysis and decision-making.
Financial automation eliminates the need for manual data entry, reducing the possibility of human error. It promotes data consistency and correctness by verifying information across many platforms. It also allows for the creation of real-time reports and dashboards, which provide stakeholders with up-to-date financial data for better decision-making.