Why it’s time to embrace the touchless close

In the past, companies focused on one area at a time, leading to a multitude of different systems running simultaneously. Risk, controls, thresholds, approvals and documentation requirements were managed in individual tools, often with different owners. And when automation was introduced, it still required significant time and effort to maintain and update each system for every event.

But there’s a better way forward. We believe that business leaders should embrace the power of data and analytics, enabled by recent technological advances like cloud computing. By automating and integrating various elements of the financial close into an end-to-end process, we can revolutionize the way we approach closing.

To break free from siloed thinking and achieve a truly touchless close, an holistic view is essential. This perspective allows us to implement the prerequisites and components necessary for a seamless automated process.

Integration and automation can revolutionize the closing process. In this article, we’ll delve into four key areas and explore how IT and Finance can collaborate to create sustainable, automatic, and digital processes that go beyond mere automation.

1. Unleashing the power of seamless account reconciliations

Imagine a world where risks are substantiated based on data-driven insights, and built-in controls become your secret weapon. A revolutionary approach to account reconciliations will unlock a competitive advantage for SOX companies and those who chose to unlock the value of reconciling accounts on a regular basis though it is not required by the regulators.

Say goodbye to the tedious and error-prone manual checks and prevent surprises as we all know that whatever moves on the Balance Sheet ends up in the P&L!

By automating completeness, accuracy, validity and restricted access, you’ll have more time to monitor, analyze and optimize your financial landscape in real time.

And let’s not forget the added value of cloud-based account reconciliations, which deliver a game-changing boost to your organization.

2. Harmonizing efficiency: a symphony of closing tasks

Close your eyes and envision a symphony orchestra playing a flawless piece.

Now imagine your closing tasks working together in perfect harmony. With a clearly structured and detailed list of activities, sequence and dependencies, your workflows become streamlined, making manual journal entries, account reconciliations and report executions a breeze. 

The efficiency gained as automation takes center stage will lighten your monthly and year-end workload. And the best part? Your data-driven approach opens the door to continuous auditing, providing a real-time status update accessible from any corner of the globe.

3. Realizing the superpowers of internal controls

Picture a world where your internal control system becomes your ultimate superhero, saving the day with unmatched efficiency and precision. By implementing a balanced approach, including end-to-end preventive and detective controls, you’ll witness a dramatic boost in efficiency. 

If you succeed in aligning these controls with approval and documentation requirements, you’ll watch compliance soar to new heights. Configure built-in internal controls within your automation solution covering account reconciliations, journal entries and the closing calendar.

This optimization supercharges your internal controls framework, allowing real-time validation, monitoring and seamless reporting.

4. Understanding the gateway to an automated financial close: journal entries

Unlock the gateway to an automated financial close with the magic of journal entries. To get there, the group journal entry policy should be your guiding light, providing clear definitions, materiality thresholds and the required supporting documentation. Start with automating recurring journal entries, capturing quick wins and propelling your efficiency forward. You can look forward to a direct positive impact on account reconciliation efforts at month-end as integration and automation create a harmonious dance of financial processes.

In the realm of digital transformation, the quality of your data reigns supreme. It holds the key to centralized and standardized processes, harboring unprecedented potential for efficiency and cost savings. With clean and reliable data, confidence in your processes skyrockets, leading to accurate reporting and empowered users who enjoy valuable business insights and projections.

Get ready to embark on a journey where audits become effortless, resources are right-sized and your Finance team can focus on strategic endeavors that truly make an impact. It’s time to brace yourself for the financial close revolution and start planning your path to success.