You’re all too familiar with the financial close process. And, by this point, you’re probably looking for a way to standardise, expedite, and optimise the repetitive and inevitable process of zeroing out your account balances at the end of each period. With financial close automation, this process becomes seamless, transparent, and hassle-free.
Here’s how automation all can work for your business, plus a look at some of the best financial close solutions.
1. What is Financial Close Automation Software?
2. What are Common Features of Financial Close Automation Software?
3. What are Challenges of Financial Close Process?
4. What are the Benefits of Financial Close Automation?
5. How to Choose Financial Close Software?
6. What are the Best Financial Close Automation Tools?
7. What are Best Practices for Financial Close Automation?
Financial close software, also known as accounting close software, automates the financial close software. Controllers and accountants typically manage the financial close process manually, which becomes time-consuming, monotonous, and error-prone.
Instead, financial close automation software can integrate with your existing toolstack, pull relevant data, cross-check information, and prepare reports and dashboards in real-time. These capabilities ensure that your team is always up-to-date with the financial status of your organisation, as well as alerted if anything isn’t lining up properly.
Additionally, these financial close solutions commonly integrate with corporate performance management (CPM) features and can be used for budgeting and forecasting.
There are various options for financial close automation software available. When researching the many tools, it is recommended to look out for certain features, such as:
The above list covers most of the necessary features of an accounting close software; however, some vendors provide additional features, such as: role-based permissions, sale forecasting, and payroll integration.
With a tool like SolveXia, not only do you get financial close automation features, but our software can perform advanced analytics that provides your team with deep insights to make the best decisions possible, at any given time.
Even though the financial close process is constantly performed within finance and accounting departments, there are many hurdles involved.
Naturally, one of the most common pitfalls of the process comes down to the amount of time it takes to perform, especially when data is stored across systems and your team’s computers. Siloed data can cause incorrect reporting, as well as add to the time it takes to review documentation.
Additionally, the financial statement close process can consist of:
According to data from Gartner, automation software has been able to save finance departments 25,000 hours of rework per year, which would have otherwise been conducted due to human errors.
The time-saving element of financial close automation is only one of its main benefits. By deploying an automation solution like SolveXia within your organisation, your team, executive leadership, and stakeholders all benefit. The advantages include:
Now, you are equipped with the types of features that are useful to have in financial close software. But, how do you choose the right tool for your team? It’s important to review the following factors:
We’ve talked about how to choose the right tool, as well as the necessary features. Here, we will share some of the top of the line automation tools on the market that have demonstrated month-end close best practices automatically.
SolveXia is a human analytical automation software that has helped finance teams, as well as other industries, automate their processes at scale. SolveXia replaces the need for manual spreadsheet-based reporting by connecting data, automating entire workflows, and saving your team time. The low/no code solution can be deployed instantaneously and works alongside legacy systems, so your data is never at risk of being forgotten.
BlackLine is a financial close automation tool that can perform account reconciliation and improve internal controls surrounding financial processes. Most commonly, BlackLine services enterprises within the financial services industry and has received great reviews in regards to its easy implementation.
Workiva replaces the need for manual work across departments, including: accounting, financial services, FP&A, legal, and auditing. The automation software unifies data, manages approvals, and executes workflows that can handle all financial close processes for your team.
Whether you’re just getting started with financial close automation or looking for ways to optimise your practices, here’s a quick look at some of the best practices you can follow.
The financial close process is here to stay, and it impacts every organisational decision. As such, it’s up to you and your team to decide how you want to deal with it month-in and month-out. By deploying financial close automation like what SolveXia offers, you can streamline the process, alleviate your team’s to-do lists, and benefit from accurate data and reporting.
There is no need to waste time performing manual work when automation solutions can expedite the process and offer a more secure way of getting the valuable tasks completed.
Like Mckinsey reports, “About a third of the opportunity in finance can be captured using basic task-automation technologies such as robotic process automation.” Financial close processes could serve as just the beginning.
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