Automation in a business’s finance department isn’t exactly a novel concept. In fact, some technology in machine learning – applying to finances in particular – started to gain serious traction all the way back in the 1980s. But, because we’re now more connected than we’ve ever been before, the concept has become quite the buzzword, simply because of how smart artificial intelligence can get, and the levels of convenience, accuracy, and efficiency it can now enmesh into an accounts department’s processes.
And one of the most vital beneficiaries of automation is a business’s month-end close. So, let’s talk around that here, and how those benefits apply.
What is month end close and why is it important
The month-end close is a crucial process for every healthy, growing business. During this time, financial professionals work to reconcile every aspect of the business’s accounting processes, to make sure there are no fiscal discrepancies. This ensures that come month-end, the financial statements produced by the business are accurate and that the business’s financial status is true and accurate for record-keeping, auditing, and reporting.
Accounting month-end close procedures can be quite the task, though – particularly when a business hasn’t fully embraced automation. Here are just a few of the important aspects that need to happen in accounting month-end close procedures, to ensure the smooth running of operations.
- Accounts reconciliation – matching account statements to those of suppliers and banks
- Inventory recording – making sure inventory is at the correct count for month-end
- Money-in records – all payments received must be cataloged and aligned to client payment records to ensure nothing is missed
- Money-out recording – all money paid in the accounts payable process, must be recorded and aligned to invoices and bills due
The benefits of automating month-end close
An automated accounting month-end close process improves operations, business-wide, by enhancing speed, transparency and efficiency through smart artificial intelligence (AI).
Here are just some of the benefits that come along:
- Real-time data – built-in, data-rich dashboards that populate monthly, for detailed insight into business performance through numbers, to bring about better, informed decision making
- Accurate record tracking – again, this happens in real-time: detailed, transparent tracking of the month-end tasks, allowing stakeholders a bird’s-eye view of processes, and thus speeding up corrections and the overall workflow
- Error reduction – where manual data entry is involved, human error can happen, and mistakes that occur during the month-end process, can be costly, and complicated to identify and amend. An automated process assigns data capture, cataloging, and accounts processing in the month-end cycle, to computers – drastically reducing, and even preventing, errors in the procedure
What to consider when choosing an accounting automation add-on
You’ll most likely be using an enterprise resource planner (ERP) system already, which provides the groundwork for automation in your financial department. To give your ERP superpowers in automation, though, a world-class add-on can be integrated.
Now, your business will have its own unique requirements in accounting that you’ve established with your ERP. You need an accounting automation software that can seamlessly plugin and enhance that.
Trust DOKKA’s smart AI to give you options in all of these.