For decades, finance professionals have utilized manual methods for foundational processes such as transaction matching and account reconciliation. The manual systems accountants have used to complete these tasks may have worked in the past, but times have changed. Now, they are no longer the most efficient or effective approach to the financial close and bring little added value to an organization’s Office of Finance.
These methods open the door to a number of potential and complex problems for the close cycle.
Challenges of a Manual Financial Close Process
Accountants historically established a variety of methods for completing their various projects, but these disparate methods had one thing in common: they’re manual. Conducting the financial close becomes inefficient when the team cannot agree on a single approach and lacks a standard process. A modern workflow allows for efficient work allocation and project management to get the job done.
Internal Control Deficiencies
Conducting the financial close with manual processes continues today, but the lack of visibility naturally leads to a lack of strong internal controls. With a modern workflow, the appropriate personnel will have oversight and visibility throughout the entire close process.
Relying on manual processes doesn’t allow employees to fully utilize their highly valued skills and potential because they’re stuck on manual processes. Alleviating manual work creates new opportunities for employees and accountants, preventing burnout and turnover problems. It’s important to offer employees the opportunity to work with each other.
This eBook explores these problems and how to solve them in order to protect your organization’s financial close.