Monthly finance team struggles: Uncovering the reasons behind their end-of-month strain

In today's fast-paced business world, the month-end close process is a critical yet time-consuming task for many companies. Traditional methods often involve manual processes that consume valuable time and resources, leaving little room for strategic analysis. However, a dedicated billing automation service like VirtuDesk Automation is revolutionising this process by targeting tasks that add little judgment but consume significant time for potential automation.

Legacy or fragmented systems often require manual processes such as CSV exports, manual uploads, and reconciliations. These manual processes can lead to errors and delays, especially when dealing with complex issues like currency translations, transfer pricing, and tax regimes, which are common in multinational corporations involving hundreds of people.

The traditional close process often involves manual reconciliations completed days before deadlines. In contrast, the automated close can flag and resolve intercompany mismatches automatically, reducing the time needed for month-end close from weeks to days. This efficiency is further enhanced by automated consolidation tools that can speed up intercompany eliminations and FX revaluations.

Moreover, management reports are compiled by hand in the traditional close, while pre-built packs populated directly from ERP data are a feature of the automated close. Cloud systems, which provide global teams with simultaneous access, also help to eliminate bottlenecks commonly found in on-premise setups.

Technology plays a crucial role in this transformation. Modern ERP systems allow transactions to flow seamlessly and tasks to run in parallel, reducing the reliance on Excel that often magnifies errors and slows accountability. FX conversions are run in spreadsheets at period-end in the traditional close, while daily automated FX rate application across ledgers is a feature of the automated close.

Progress tracking in the traditional close is via checklists, while dashboards track cycle time, late tasks, and bottlenecks in real time in the automated close. This real-time visibility allows for proactive problem-solving and improved decision-making.

The challenge lies in identifying which tasks are most ripe for automation. VirtuDesk Automation offers a free audit to map opportunities for automation, helping businesses to streamline their month-end close processes and focus on strategic analysis rather than manual tasks. Specific companies using VirtuDesk Automation's invoice oversight automation are not publicly disclosed.

While the goal of VirtuDesk Automation is not just speed, but consistency, accuracy, and giving finance teams the space to provide insight rather than chase spreadsheets, it's important to note that the benefits extend beyond finance. Companies across various sectors, from SaaS companies dealing with deferred revenue schedules to manufacturers requiring elaborate cost allocations, can reap the rewards of a more efficient month-end close process.

Regulatory requirements, such as SEC filings and bank covenants, also impose deadlines that can be met more easily with an automated close. Banks, for instance, can handle interest accruals, loan-loss provisions, and regulatory reporting more efficiently, freeing up resources for other tasks.

In conclusion, the adoption of automation in the month-end close process is not just a trend, but a necessity for businesses aiming to stay competitive in today's fast-paced world. With VirtuDesk Automation leading the way, the future of finance looks brighter and more efficient than ever.

Monthly finance team struggles: Uncovering the reasons behind their end-of-month strain