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 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 3 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

Kapacity’s approach – get a good start

Getting a good start and beginning the work on the first focus areas can seem like a big task, and it can be difficult to prioritize in a busy everyday life.

At Kapacity, we use a simple method that quickly uncovers specific issues and priorities.

Understand the baseline

We will analyze the current situation and create a common understanding of challenges and priorities.

As part of the baseline, we categorize the issues so that we know whether the focus in the further analysis should be on the process, organization, data, technology, or governance.

In addition, focus areas are prioritized and selected based on a simple prioritization matrix.

Analyze issues

Through interviews with the key individuals who are performing the tasks, the work process from A-Z is analyzed to understand the challenges in detail and to identify the optimization options.

Maturity assessment

The work process must be at a certain level of maturity, and the right competencies must be present to create the best foundation for optimization.

Get an overview of efforts and solution proposals

The observations from the analysis are presented with recommendations for efforts and order of priority.

The purpose of analyzing the month-end process is to identify the work tasks and challenges associated with the monthly close.

Including preparation of the completed management reporting, which can be optimized using data analysis and BI solutions.

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 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

Want to more about the period-end process?

Do as a large number of the country’s most ambitious companies:
Fill out the form or get in touch with Stig – then we can have a chat about your challenges and dreams.

Stig Thougaard
Senior Commercial Advisor, Digital Strategy
+45 31 63 29 21
sth@kapacity.dk