How Can a Financial Close Automation Software be applied?

Accountants can automate their financial closing procedures by reusing process stages, sequences, calendars, and other aspects throughout their processes. These processes can be built using drag-and-drop functionality or huge libraries of ready-to-use financial templates.

Fremont, CA: Financial close automation software allows users to automate financial closure checklist steps such as journal entry, balance sheet registration, cash flow analysis, and intercompany tasks.

Financial close automation software automates the following steps in a financial close checklist:

Automating Journal Entry

One of the most critical aspects of the period-end close is journal entries. More than half of all closing activities are journal-related, owing to the thorough verification that must be done to ensure the entries' accuracy. With each new data source, the task becomes more intricate and focus-intensive. One advantage of an automated solution is that it automatically and accurately enters data from various ERP and business systems into a journal automatically and accurately.

Coordinating Intercompany Tasks

The volume of intercompany data or data scattered across several sectors within a corporation can generate complications. Because intercompany computation is a collaborative process, all people involved must have complete visibility of their respective balances, disparities between them, and underlying activities.

For example, foreign exchange discrepancies, time delays, and different firm financial systems can all contribute to a confusing and complicated back-and-forth as the season approaches. These issues are complex and time-consuming, jeopardizing the timely closure of the books and delaying reconciliation for another period.

Automated software programs can match uncleared transactions from respective counterparties, separate unmatched goods, and notify nominated individuals for preemptive settlements. Furthermore, the software automatically collects intercompany documents and enters them immediately into the counterparty books.

Eliminating Balance Sheets Inefficiencies

Balance sheet reconciliation, or balancing the debit versus the credit, can be difficult since it necessitates accurately capturing data from many distributed systems and manually entering it into a spreadsheet. Automating the procedure would result in a single cloud storehouse where every piece of data is precisely, effectively, and seamlessly integrated into the software, visible to all relevant staff.

Furthermore, automating balance sheet certification saves time by reducing repeated human procedures, maintains data accuracy, and may result in lower audit fees. Finally, automated solutions may manage data warehouses to detect data abnormalities or duplication, providing a single source of truth.