Simply put, Closing Software helps accounting departments close the books (we’ll shorten it to “CS” from here). CS helps to reduce close time, mitigate errors and streamline financial reporting.
Month end is managed by the Controller, who assigns work out to the team and uses an Excel checklist to track completion. They ensure everything is on schedule by getting periodic updates from the team and holding status update meetings to make sure everyone is communicating.
Once all of the close tasks have been completed and journal entries have been posted, it’s time to ensure supporting documents tie-out to the trial balance and to reconcile accounts where needed. The tie-out and reconciliation process can be time consuming, typically requiring somebody to dig through a workbook to find any reconciling items.
CS began to gain traction in the early 2010’s and we here at FloQast believe it’s the next step in accounting. The month end close is a complex process with several moving parts and has been ignored for far too long. If you take a step back and really think about just how much a Controller juggles at month end, it’s amazing that financial statements get put out at all. Our under appreciated Controllers do just what the title suggests: they control everything. Seriously, check out the “Essential Functions” on this sample Controller’s job description. It’s a long list of bullets points and the last one sums it up beautifully…
“Any other responsibilities that may be assigned from time to time.”
Month end is just a small part of the Controller’s responsibilities but eats up a significant portion of their time. The adoption of CS is an exciting time for Controller’s as they will have more time to put their talents to use in other areas like strategic planning, process improvement and team morale.
Want more? In our 5 part series you will learn how Closing Software can automate account reconciliations, shorten your close time and improve SOX and audit documentation. Sign up here!