GL Close Efficiencies
There are a number of elements which can help maintain the continued efficiency and effectiveness of the general ledger close process. Companies should keep these in mind when considering investments to improve the process:
Organization and talent management
The organization's financial operating model should be aligned to satisfy the external and internal reporting and analysis needs of the business. Consideration should be given to which organizational model (centralized, decentralized or hybrid) works best. Talent management is a key priority as companies need the right people, with the right expertise, in the right roles. Leading companies often employ a talent management structure based on these steps: 1) Define the talent needs; 2) Attract, source and retain talent; 3) Develop talent potential; and 4) Deploy the right talent to the right place.
Process and accounting model
A well-defined, end-to-end process can help finance organizations capitalize on the firm's market position and leverage its assets. Our experience indicates that value within high performance organizations may be realized through a closed-loop process, which integrates finance and business strategy. One critical cornerstone for both managing the business and for reporting results to governing bodies is the chart of accounts (COA). A properly designed and correctly governed COA can allow companies to exploit business trends in real-time to foster innovation and competitive differentiation.
High-performance organizations leverage data and technology to support process efficiencies and effectiveness across the organization. This is particularly important today, when data volumes are doubling every few years and where unstructured data is becoming as important as structured data. Numerous benefits are to be found in the integration of technology solutions. Simplifying and integrating the IT architecture helps to realize significant time savings and enables greater accuracy of reporting. Incorporating flexibility for enhancements and changes is a crucial enabler to accelerate the closing cycle. Furthermore, utilizing enhanced reporting capabilities helps to improve closing processes and can be applied to non-close activities as well.
In order to facilitate a high-performance close, organizations should adopt a governance framework that enables clear accountability, improved transparency and comparability of results. The framework should encompass data (which data and who has access to it); security (who should have access to which applications) and information (what information is needed and when is it needed).
If you are seeking to improve the efficiency of your monthly accounting close, give Kinetic CPA Group, LLC a call to discuss strategies which may help.
Kinetic CPA Group, LLC builds solutions that modernize the finance and accounting function to empower greater productivity and detect accounting errors before they become problems. We can help you develop solutions that work in unison to eliminate manual spreadsheet-dependent processes prone to human error. Kinetic CPA Group, LLC can help you automate and standardize your reconciliation process.
Using a cloud-based platform, like BlackLine , we can integrate Account Reconciliations with other BlackLine products to help manage every element of reconciliations and the financial close. Streamlining account reconciliations helps ensure accurate and efficient accounting activities, free from manual, error-prone practices. BlackLine is the only provider that offers a unified cloud platform supporting the entire close-to-disclose process and the leader in Enhanced Finance Controls and Automation software.
BlackLine enables clients to move away from out-of-date practices and help finance and accounting professionals work smarter, more efficiently, and accurately.
Clients around the world use BlackLine . BlackLine cloud platform unifies the experience of more than 200,000 people around the world as they accurately, securely, and efficiently execute critical accounting tasks from reconciliations and journals to intercompany settlement and the financial close.
Do Your Monthly Close Processes Make the Cut?
According to a global survey of accounting, ﬁnance, and compliance professionals, optimized technology and processes continue to be the primary drivers of success for today's complex ﬁnancial reporting.
A critical part of optimization is standardizing and centralizing processes to reduce risk, better monitor controls, and ease reporting burdens. If your ﬁnance teams are spending most of their time managing data, little is left for analysis and veriﬁcation.
Let Kinetic CPA Group, LLC help you organize your data and evaluate alternatives.
Accounting System Implementation
Time is money, and one of the most frequently asked questions that a business decision maker has when looking into any new software (or any project for that matter) is this: "How much time will it take to make this project happen?"
If you've led a major change project at your company, you understand that you will be spending a lot of time talking and working with the implementation team, who will be getting to know the ins and outs of your business's operation and how their software will fit into the bigger picture. However, just as you charge your clients for the products or services your company offers, the team helping you to implement software will charge you for any overruns or unplanned changes—the more moving parts or changes being made, the higher the total cost of implementation could be for you.
Knowing how important this is, it's important to know that the initial plan and additional time spent will be driven by a variety of factors that need to be discussed before the project begins.
One of the most important ways to avoid implementation disaster is to know what you want, remain flexible, and keep optimizing your workflow as the project completes:
- Know What You Need: Too many organizations fail to plan their projects before buying into (or even deciding on) a software, and as the adage goes, failing to plan is planning to fail.
- Be Realistic: Software Advice notes that "Implementations take time, and unrealistic time frames only create more problems." Speak with your team and partner to design a time frame that is realistic and that will contain costs.
- Communicate: This means communicating with your employees and your implementation team. Any lapse in communication during the project can lead to additional pain at the end.
Let Kinetic CPA Group, LLC take the stress out of your software implementation.Give us a call today