Accountants typically confront a heavy workload with deadline pressure, especially towards month-ends or year-ends. All of this while attempting to boost billable hours. This can lead to extreme stress, which is frequent in developing businesses and accounting firms.
For more than 60% of the companies, it'll take more than a week to complete the Month-End accounting process. This is only because of mistakes that happen in the faster runners to complete the month-end accounting process. The checklist below will help you to complete your month-end accounting with accuracy.
Complete pending cash application processes.
Check to ensure that all transactions have been recorded in the ERP.
Send the reports to the stakeholders.
Prepare to provide reports to external organizations.
Gather paperwork for the auditors.
Determine the depreciation and amortization of fixed assets.
Inventory should be counted.
Make a list of all accumulated obligations, including wages, paid time off, payable interest, taxes, and other charges.
Examine and reconcile inter-company accounts to ensure that business financial statements are consistent.
Produce the draft balance sheet, income statements, and accounts receivable reports.
All the above-mentioned processes are mostly manual and is very difficult to keep track of them using an Excel Sheet or Spreadsheet. There are some other common issues that an accounting team faces while closing the month-end accounts. They are
Documents that are Disorganized or Missing.
Errors in Spreadsheets.
There is a lack of openness on which tasks have been performed.
Uncertainty among colleagues over their Month-End Responsibilities.
Accounts Receivable is the process of receiving payment from customers who have purchased services or goods from the company on credit. Recovering the money is an Accounts Receivable procedure that entails several manual steps that make the recovery process lengthy and effortless.
Accounts Receivable Automation, which includes automated and effective reminders, powerful and customizable workflows, an insightful dashboard, and a unique customer portal, will make your business's accounts receivable process easy and successful.
Accounts Receivable Automation is the solution to reducing work stress and pressure while increasing work productivity in accounting teams. Several components of the month-end closure procedure are automatable. They are:
1. Accounts Receivable: Automated invoicing and verification gives you end-to-end visibility into customer payments, resulting in more accurate data for your reports. The finance team just needs to analyze overdue invoices and follow up with overdue customers, both of which can be automated.
2. Follow-Ups: Accounts Receivable Automation can assist you in more successfully managing follow-ups. You can ensure that your customers are touched on time and that you can track the status of your follow-ups by automating your follow-up process. This can assist you in improving your collections process and reducing the amount of time spent on manual follow-ups.
There are several benefits to automating your Accounts Receivable process using Maxyfi, including the ability to complete your month-end accounts quickly and without mistakes. Some of the unique and industry-leading features you'll receive by joining Maxyfi are as follows:
1. Dashboard: Using our dashboard that shows multiple metrics and insights like the Aging report, Needs Action, Customer Action Stage, and Top Debtors, you can quickly determine how much debt needs to be collected, who your top debtors are, and what actions need to be taken. This can help you better understand and track your business's receivable process and enhance the cash flow.
2. Customer Portal: With our intuitive customer portal that provides rapid payment alternatives and smart tools to Request Payment time and call back, you can get 2x the customer response and 80% faster payments. Maxyfi enables clients to reply online, which would be impossible with restricted alternatives otherwise.
A good and timely month-end accounts closure procedure allows a clear picture of a company's cash flow. The first step toward a stress-free month-end accounting procedure is to use accounts receivable automation software, particularly for accounts receivable. From bank reconciliation to financial report generation, automation is the quickest and most cost-effective solution to ensure an accurate balance sheet every month.
All of these procedures require automation to be seamless. Check out our complete blogs on accounts receivable and decreasing month-end accounting stress.