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Think of how long your month-end close process takes.
Now think of how much time you could save if 90% of the manual tasks were automated— and what you could do with that time instead.
That might sound like a pipe dream, but it doesn’t have to be.
The monthly close process, as most of us know it, can be time-consuming, resource-intensive, and prone to human error. However, recent advancements in task automation technology have transformed the process, cutting out most manual tasks.
This blog post explores how automating the monthly close process can transform your accounting team, boosting efficiency, accuracy, and morale.
The challenges of a traditional month-end close
If you’re used to doing the month-end close using traditional methods, you’ve probably grappled with these familiar challenges:
Labor-intensive processes
Manual data entry, account reconciliations, and report generation take a lot of time and effort. On average, accountants spend around six days completing the monthly close. But depending on the size of the business, resources available, and amount of financial data, it can take up to 10 days.
Much of the that time is spent on the pillar activities of a month-end close:
- Account reconciliations
- Tasks like reviewing accruals and adjusting entries
- Flux analysis (also known as variance reporting)
- Close controls
These activities are often done on a mix of platforms, such as Excel spreadsheets, your enterprise resource planning (ERP) system, accounting software, and if you’re old-school, even printed binders. Which leads us to the next challenge.
Errors caused by disjointed data
Because these pillar tasks of the close often happen on different platforms, accountants must constantly context switch, double-check their work, and have their flow interrupted as they switch between systems.
This back and forth makes the process longer and leaves more room for error than if it took place on a single platform. Plus, the human errors inherent in manual processes can lead to inaccuracies that can often require extensive revisions.
Ineffective process management
Close tasks are often divided among different team members, and each one might have their own processes or platforms they rely on. Unfortunately, this can lead to ineffective and inefficient processes where communication is inconsistent, tasks fall through the cracks, and teams miss their deadlines.
Project management can make or break the process. As Chris Miller, Netgain’s SVP of Product Strategy, puts it: “A really well-run close checklist needs to look a lot like a project.”
That means accountants must apply project management principles to run a smooth month-end close. And that begins with the tools your team uses.
For example, if you can manage your entire close using solutions embedded within your ERP, you can give your team full visibility into tasks, responsibilities, and deadlines. So once a team member finishes the reconciliation process, the next team member is notified and can get started on the next task, and so on.
Stress and burnout
Between the pressure to meet deadlines, tedious manual tasks, and potential for errors, the monthly close can quickly become a time accountants dread.
The more disjointed the process, the more stressful it can be for your team, ultimately leading to high stress and burnout.
This is why modernizing the process through automation can make such a difference for accounting teams. Let’s explore how.
Benefits of automating the monthly close process
Using the right month-end close task automation software, you can transform the process, gaining the following benefits:
Enhanced efficiency and accuracy
Month-end close automation reduces the time your team spends on routine reconciliation tasks.
You don’t need to print out the reconciliations binder or create a massive spreadsheet anymore. An auto-reconciliation solution embedded in your ERP can pull your general ledger (GL) balance and underlying detail, and if everything matches with your sub-ledger, it can auto-certify it.
The reconciliation process doesn’t go away, but the system does about 90% of it for you. This cuts down the number of manual reconciliations and reduces the likelihood of human error.
Centralized data enables compliance and audit readiness
Embedded or integrated close accounting software enables accountants to execute the close in the right place—in your ERP—instead of pushing it out to third-party tools.
This means you can rely on your financial data because it’s automatically imported, and you don’t have to worry about manual entry errors.
Additionally, automation ensures that all monthly close processes are documented and compliant with regulatory standards, simplifying audits. Every action taken within an automated workflow is logged along with details like who reviewed the action and when it occurred, creating a clear and consistent record for auditing purposes.
More time for strategic analysis
At the top of the post, I asked you what you could do with the reclaimed time if most of the close process was automated. This is where the real transformation happens.
When your team can hand off repetitive tasks to automation solutions, they can dedicate more time to strategic analysis and data-driven decision-making, adding value to your business operations.
This transforms accountants from data processors to key strategists, contributing to your organization’s success and your team’s professional growth. This is one of the reasons why this era of innovation is an exciting time to be an accountant.
Key features of effective month-end close automation tools
Adopting a close accounting solution that streamlines and automates processes can make a huge difference for your team. But where do you begin when selecting the right software for your business?
Look for these key features to ensure your close accounting software brings you the benefits we discussed above.
Real-time data integration
Streamlined data flow within your ERP is key to ensuring accuracy and consistency in automated processes. A close accounting solution that’s directly embedded in your ERP is the easiest way to provide peace of mind that your data is accurate and up to date.
Depending on your industry, there may be other platforms you need to integrate, like ecommerce and third-party fulfillment. Integrating these platforms with your ERP can further streamline processes like invoicing and order fulfillment.
Ultimately, using embedded and integrated solutions turns your ERP into the single source of truth for your financial data.
Automated reconciliations
Auto-reconciliation features are a must-have in a close accounting solution. Auto-reconciliation matches transactions automatically between your GL and balance sheet, resulting in significant time savings and efficiency.
Intelligent reporting and analytics
Advanced reporting tools provide insightful analytics in minutes, enabling informed decision-making without the need to create manual reports. The best close accounting solutions offer automatic reporting like waterfall reports and detailed financial summaries, giving your team more time to analyze the data.
Automate the monthly close with NetClose
Automating the monthly close process is not just about adopting new software solutions—it's about transforming how your accounting team operates.
By adopting automation solutions, you can enhance efficiency, reduce errors, and improve overall job satisfaction.
This means your team can focus on strategic tasks that drive value for your organization and your team members.
We designed NetClose to give you the accuracy you need for a successful and efficient month-end close process without the long nights and burnout. With advanced task management, auto-reconciliations, and intelligent reporting—all fully embedded in NetSuite—you can close the books inside your ERP and eliminate context-switching.
If you want to see what this looks like in action, take a self-guided tour, or reach out to our team for a personalized demo.
