The period-end process
An effective period-end is about more than optimizing the closing process itself (faster, better, more efficient).
Experience shows that access to relevant data, with the right frequency, helps to solve problems with incorrect postings, missing registrations, etc. It provides an efficient closing process and more accurate accounting.
At twoday kapacity, we focus on 3 key areas that will lead to a more efficient process:
- To reduce the time spent on the closing process
- Create an overview and insight with BI and thereby improve data quality
- Automate and simplify work processes
Continuous improvements within these three focus areas will end in better results and more efficiency as a result of more time on hand and higher precision.
How to succeed
Challenges and limitations of the closure process are typically seen in organizations where one or more conditions are not present:
- Processes need to be robust, efficient and standardized with limited manual handling and the processes must also be well documented
- The organizational structure must be effective with clear roles and responsibilities. The team must include competent people with computer and analytical skills
- There must be access to credible and updated data for the entire organization on an ongoing basis
- Systems and tools must be contemporary, relevant and support automation so that manual work is limited. And technologies must be optimally exploited to reduce the sources of error, improve data quality and increase transparency
- Management and the correct level of implemented policies, procedures, rules, and internal controls must be implemented
How does BI add value to the period-end process?
Customer benefits – examples
- More time available for control, analysis, management reporting, and Business Partnering
- Large reduction in manual and time-consuming export of ERP data and data import to Excel
- Controllers and accountants can work simultaneously. It anticipates troubleshooting earlier and on an ongoing basis throughout the month
- Better opportunity for compliance with accounting rules and guidelines. With BI, you will find more data entry and accounting errors and have a better opportunity for consolidation and compilation of financial key figures
- More timely analysis, reconciliation and closing of balance sheet accounts
How twoday kapacity can help:
- Close the books faster using BI
- Faster data collection and aggregation of the income statement and balance sheet during the closing period
- Automatic reconciliation between data models and ERP system is more accurate and frees up time
- Cube-based polling models in Excel or BI optimize and provide greater data trust
- Ability to reconcile and analyze multiple financial accounts, which increases the accuracy of the financial statements
- Training of finance staff integrated into the working day