As the end of the year draws near, businesses everywhere are focused on completing their year-end close.
This process is essential for ensuring that all financial transactions are accounted for and properly reported. It’s also crucial for preparing for a successful audit.
In order to make the year-end close as smooth and stress-free as possible, follow these best practices:
1. Start early
Beginning your year-end close process early will ensure that it’s completed in a timely manner and that all necessary deadlines are met.
Gather the necessary documents and records on time and create a checklist of tasks that must be done to complete the close.
2. Review accounts
Review all accounts for accuracy and ensure that all financial transactions are recorded accurately and consistently.
Check for any discrepancies or errors, and correct them if necessary. This will help you prepare for an audit by ensuring accuracy in financial reporting.
3. Review previous closing processes
Reevaluate any processes or systems used during the previous year-end closes and update them as needed, such as setting up new accounts, reviewing current statements for accuracy, or revising account coding.
4. Reconcile bank accounts
Ensure that all bank accounts are reconciled at the end of each month leading up to year-end close, as well as directly following it. This will help identify potential discrepancies and enable you to address them before completing your close.
5. Establish deadlines
Set realistic deadlines to ensure each team member completes their tasks in the allotted time. This will help prevent delays and errors as well as reduce stress.
6. Automate where possible
Use automation to streamline processes and reduce manual data entry. This will save time and resources, as well as improve accuracy.
With a financial management system such as SunSystems, you can reduce errors, gain greater accuracy and visibility, and ensure consistency throughout the year-end close process.
7. Review reports
Once you have completed the close, review all reports and compare them to the previous year’s figures to identify any unexpected changes. This will help you to identify discrepancies in financial reporting, as well as give you a better understanding of your organization’s financial situation.
By following these best practices, you can ensure that your year-end close process is organised and efficient.
This will make it easier to prepare for a successful audit and give you peace of mind knowing that your financials are accurate and up to date.
Want to talk to a financial system expert or consultant about your year-end close process? Contact us today!