The month-end closing process is one task that is dreaded by almost every person in the accounting department. Several processes are involved like depreciating fixed assets, reconciling inventory discrepancies, settling work in progress material, posting billing documents and payroll.
This process can be a tedious one. But there are ways that can help in making this period a smooth sailing. So, here are our top picks on how you can do this:
1) Co-operation & Communication:
It is very essential in a company that everyone understands the importance of closing of accounts. The delay in closing is mostly because some departments didn’t submit the necessary records or there was a delay in some manner. This puts additional pressure on the accounting department. To tackle this, you can become a little proactive in communication and demand the necessary records in enough time before the month-end.
Utilizing technology effectively in the internal working of the company can prove to be a very efficient way of managing the accounts. The more well connected the accounting is, the easier it will be to gather and utilize the workings of the firm. Technology can also serve a purpose when it comes to doing calculations and compiling data etc. Being up to date with technology helps you in working smartly.
3) Organize your accounts payable and reconciliation functions:
Last-minute invoices throw the whole accounting process off the track. To avoid this, you can put a strict routine for receiving the invoices. Any invoices received after the deadline will be paid in the next AP cycle. Similarly, a smart account reconciliation software can help ease out the tiring process allowing the accounts department to work via automation in most cases. You can also try and implement weekly reconciliations to make it easy at the end!
This works in almost every aspect. Having a monthly timeline laid out for various processes before the closing can help you keep things organized! It saves you from all the last-minute chaos. Your timeline should act as your roadmap issuing clear instructions about your requirements from all the departments and their deadlines.
Objectivity always gets more clarity to anything. We would suggest using standardized formats for all your invoices or other receipts. The same can be made applicable to any other subjective matters in the departments.
At Boston Financial, we provide you with an integrated accounting system that we have handcrafted to make things easy for you! Get in touch with us to gain a more detailed insight!
Bangalore: +91 80 2572 4800
USA: +1 6099377291
Pune: +91 7420061235
Visit our website: www.bostonfagroup.com