What if you boosted your accounting closing!
Publié
Le 14/12/2023, par :
- Anne Marie Diom
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Contexte
Once you have identified the need to automate and industrialize your reconciliations, you will need to ask yourself a few important questions before starting the work or making the decision to invest in a dedicated solution.
This will prevent you from going too quickly into costly, insecure and time-consuming paths such as internal developments, the use of unsuitable solutions, or the systematic use of Excel or other spreadsheets.
What is accounting closing ?
Accounting closing is the process by which a company ends an accounting period, often monthly, quarterly or annually. This step consists of grouping and consolidating all financial transactions made during this period to prepare financial statements, such as the balance sheet, income statement, or cash flow statement. These statements play a vital role in providing an overview of the financial situation and performance of the company at a given time.
The importance of this step is multiple. On the one hand, it ensures that the accounts faithfully reflect all the operations carried out by the company. It is also the time when accountants verify the compliance of the accounts with the accounting standards in force, identify and correct any errors. This rigor is crucial because these financial statements not only serve to inform the company’s internal stakeholders, such as management, but they are also essential for shareholders, investors, and creditors.
In practice, the closing process involves several well-defined steps. It starts with gathering and consolidating all financial data and transactions for the period. Then, adjusting entries are often necessary to ensure that the accounts accurately reflect the financial reality of the business. After these adjustments, interim financial statements are prepared, then reviewed and audited to ensure their accuracy. Once this audit is complete, the final financial statements are prepared, ready to be presented to stakeholders.
The accounting close, although sometimes perceived as a simple administrative task, is actually the heart of accounting. It is a true reflection of the financial health of a business at a given point in time, and, of course, often presents many challenges.
What are the common challenges encountered during accounting closing ?
Indeed, the accounting closing, although essential, is not without its challenges. Many companies, from SMEs to multinationals, encounter various difficulties throughout this process.
One of the major challenges is data management. With transactions that can number in the thousands or even millions, the risk of omission or error is high. In addition, in many companies, data comes from various departments and systems, increasing the complexity of their consolidation.
Coordination between the different departments and entities of a company, especially if it is multinational or has several subsidiaries, can also be problematic. Each entity may have its own way of processing and recording transactions, requiring harmonization when consolidating accounts.
Human errors are inevitable. Whether it is an incorrect entry, forgetting to record a transaction or misinterpreting an accounting standard, the consequences can be considerable.
Furthermore, the constant updating of regulations and accounting standards requires companies to always be up to date with the latest changes, which can be a challenge in itself.
The impact of delays or errors during the closing is multiple. First, incorrect financial statements can lead to bad strategic decisions, as they are based on a distorted image of the company’s financial reality. Second, errors or delays can harm the company’s reputation and erode the confidence of investors, shareholders and other stakeholders. In some cases, this can even lead to legal or financial sanctions, especially if the company is listed on the stock exchange.
Thus, despite its routine nature, the accounting closing is a complex and delicate process, requiring precision, coordination and vigilance. Errors or delays are not only administrative problems, but can have profound repercussions on the health and perception of a company.
The advantages of a software solution for accounting closing
In the current context, where digitalization is transforming almost all areas and procedures of companies, adopting a software solution for accounting closing can offer a multitude of advantages that optimize and improve the process as a whole, including:
The performance of financial teams
Using a dedicated accounting close software tool can significantly increase the productivity of finance teams. Instead of spending countless hours manually processing data, searching for errors, and consolidating information from various sources, teams can focus on analyzing results, making informed decisions, and strategic planning. A software solution simplifies and speeds up many tasks, allowing teams to work more efficiently.
Reducing errors and increasing accuracy
Human errors, while inevitable, can be minimized through automation. A reliable accounting closing software solution is designed to detect and correct inconsistencies, ensuring greater data accuracy. By automating repetitive tasks and applying constant controls, the likelihood of errors decreases, providing more reliable financial statements.
Collaboration made easy
In many companies, the closing process involves multiple departments or entities. A software solution facilitates collaboration by centralizing information, allowing simultaneous access to data, and ensuring real-time updates. This allows teams to work together, share information, ask questions, and resolve issues in real time, without waiting for documents to be sent from one department to another.
Process automation
It is one of the most tangible benefits of a software solution. It eliminates the need for tedious and time-consuming tasks, such as manual data entry or checking totals. The tool can be programmed to perform specific tasks at specific times, ensuring that nothing is forgotten or overlooked.
In a world where speed and accuracy are essential, it is imperative for businesses to equip themselves with the best technologies to stay competitive. A software solution for financial close is much more than just a data entry tool. It is a powerful ally to transform and optimize the closing process, allowing businesses to gain in efficiency, accuracy and reliability.
Dans un monde où la rapidité et l’exactitude sont essentielles, il est impératif pour les entreprises de s’équiper des meilleures technologies pour rester compétitives. Une solution logicielle pour la clôture comptable est bien plus qu’un simple outil de saisie de données. C’est un allié puissant pour transformer et optimiser le processus de clôture, permettant aux entreprises de gagner en efficacité, en précision et en fiabilité.
Top Key Features and Features to Look for in a Software Tool for Accounting Close Optimization
In today’s competitive landscape, businesses need sophisticated software tools to ensure a smooth and accurate financial close. But what are the essential features that differentiate good (or not so good…) software from great software? Here’s a look at the best features to look for.
Dashboards and reports for real-time monitoring
The ability to have a real-time overview of closing processes is crucial. Intuitive dashboards provide instant visualization of progress, tasks in progress, and any anomalies or delays. Automatically generated reports can also provide detailed analyses, allowing teams to make informed decisions quickly.
Collaborative features for better team coordination
Built-in collaboration tools, such as chats, discussion forums, or comment systems, allow teams to communicate effectively without leaving the software interface. These features promote transparent information sharing, rapid problem solving, and smooth coordination between different departments or entities.
Easy integration with other systems
Accounting closing software typically doesn’t work in isolation. It must be able to integrate seamlessly with other systems, such as ERPs, CRMs, or treasury management tools. Seamless integration ensures a continuous flow of information, reducing manual entry errors and duplicates.
Advanced Automation
Beyond basic tasks, great software should offer automation capabilities for more complex processes. This can include custom rules, alerts for specific events, or even AI-powered automation scenarios.
Security and Compliance
With the amount of sensitive data handled during the financial close, security is paramount. An optimal software has robust features to ensure data confidentiality, integrity, and availability. Additionally, it should help businesses comply with local and international accounting regulations.
Updates and scalability
The world of finance and accounting is constantly evolving. The ideal software will be
regularly updated to incorporate the latest innovations, accounting standards, and regulations. In addition, it should be scalable to accommodate the growth or structural changes of the business.
While the market offers a multitude of options for financial close software, these key features are essential to ensure an accurate, efficient, and compliant close. By choosing a tool with these features, you will be better equipped to face the complex challenges of the modern financial close.
Are there specific solutions for different types of businesses or sectors?
The financial and accounting environment is not uniform for all companies. Different sectors of activity, due to their specificities, generate unique needs in terms of accounting closing. Similarly, the size of the company can influence the complexity and scope of accounting operations.
Thus, many industries, such as healthcare, finance, real estate or manufacturing, have specific regulations, practices and challenges. For example, the banking sector requires strict compliance with financial and regulatory standards, while the manufacturing sector may require an in-depth analysis of production costs.
Consequently, software solutions have been developed to meet (or not…) these specificities, integrating dedicated modules or automations specific to each industry.
Similarly, while small businesses (SMBs) often need simpler, more intuitive and affordable solutions with a steep learning curve, mid-market businesses (MMBs) look for modular solutions where they can add features as they grow. Finally, large or multinational enterprises must manage multiple subsidiaries, different currencies, international compliances and multiple integrations with other business systems.
With this diversity, you need to ensure that the software solution you choose has been designed to meet the specific needs of your type of business.
How to successfully implement a software solution for accounting closing ?
Thanks to the remarkable efforts of some solution vendors, implementing a software solution for financial closing is no longer the ordeal it once was. Depending on the solution, it can now be a simplified process that requires careful but simple planning and minimal oversight to ensure success. Here are some steps and best practices to follow:
A needs analysis is the first crucial step in this journey. A company must carefully assess its current needs and anticipate those of the future. The size of the company, the complexity of its transactions, and industry specificities are all factors that will influence the choice of the most suitable solution. It is also wise to consult the feedback of other companies with similar needs to guide this choice.
Once the ideal solution has been identified, implementation planning comes into play. Establishing a precise timetable, punctuated by intermediate milestones and checkpoints, is essential to ensure a smooth transition. Additionally, identifying key stakeholders and clearly defining their roles will ensure that every aspect of the implementation is addressed.
User training and adoption is arguably the most crucial step. The success of any solution largely depends on the ability of users to understand and use it effectively. Organizing training sessions that focus on the benefits and practical applications of the solution can help facilitate adoption.
But implementation does not stop once the system is in place. Regular monitoring and adjustments are necessary to ensure that everything is working as expected. User feedback is of paramount importance at this stage, as it provides direct insight into potential issues or areas for improvement.
Finally, measuring return on investment (ROI) is a step that consolidates the success of the implementation. Before implementing the solution, it is essential to identify key performance indicators to assess its effectiveness. With regular monitoring of these indicators and comparative reports, the company can have a clear vision of the real benefits of the solution in terms of costs and performance. Integrating user feedback into this analysis can also provide a qualitative perspective on the impact of the solution.
What feedback have companies had from adopting a software solution ?
Many companies have recently integrated software solutions into their financial close process. While the experience has been largely beneficial, it has not been without its challenges.
Among the main obstacles encountered, resistance to change tops the list. Many employees, accustomed to traditional methods, initially saw the tool as a complicated addition. Added to this are unexpected technical issues during implementation, as well as a feeling of insufficient training on the new technology.
However, in the face of these challenges, solutions have emerged. Awareness sessions have helped demonstrate the benefits of the new approach, while enhanced technical support and ongoing training have helped smooth out implementation difficulties.
The positive impacts are undeniable. Companies report increased efficiency in their processes, a significant reduction in errors, and improved collaboration between teams. These long-term benefits validate the decision to adopt a software solution for financial close.
The accounting closure of the future: a prospective vision
As we enter a new technological era, the financial close is at a crossroads. The speed and complexity of technological change have already begun to reshape this essential function, but what does the future hold?
Artificial intelligence (AI) is emerging as a game changer. It has the potential to automate repetitive tasks, predict errors before they happen, and provide predictive analytics. With AI, the financial close could become faster, more accurate, and less prone to human error.
At the same time, blockchain promises to revolutionize the way transactions are recorded and verified. By providing an immutable and transparent ledger, it could make the close more secure and streamlined, with improved traceability of every accounting entry.
However, with these innovations comes the challenge of adaptability. Companies must ensure that their tools are scalable. Adaptability is essential to integrate new features and stay up-to-date with technology trends. Solutions that don’t evolve with the times risk becoming obsolete, leaving businesses behind their competitors.
New innovations, perhaps as yet unknown, may also emerge, continuing to transform the financial close in unpredictable ways. What is certain is that the financial close landscape is constantly changing, and businesses must remain vigilant, flexible, and ready to adapt.
Boost your accounting closing with XCERT from Calixys
Calixys’ XCERT solution has established itself as an effective and tailored response to today’s major financial close challenges.
In a context where efficiency and speed are essential, XCERT offers automation features that simplify repetitive tasks, ensuring valuable time savings. Its intuitive platform also ensures a reduction in errors, thus meeting the need for accuracy and precision.
Furthermore, with the growing importance of internal collaboration, XCERT facilitates coordination between teams, allowing for process harmonization and better communication between key players.
XCERT is also designed to be scalable, ensuring that companies are not left with an obsolete solution as needs evolve.
Calixys’ XCERT is not just another software solution on the market. It is a well-thought-out and robust response to today’s financial close challenges, ensuring that companies are well-equipped for the future.
So, are you ready to boost your financial closing?
