Key takeaways
- A fast close does not come from pressure in the final days, but from work that is already done during the month.
- A binding closing calendar sets out who delivers what and by when, and it must be accepted by everyone involved.
- Clear open items as you go, record accruals in a checklist and reconcile intercompany balances early.
- Proceed step by step and bring order first, then automate, because automating an unclear process does not make it any better.
Contents
A slow month-end close is rarely down to a single problem. Usually it is the sum of unresolved items, missing documents and reconciliations that only start at the end of the month. A fast close therefore does not come from pressure in the final days, but from work that is already done during the month.
01The closing calendar as the backbone
A binding closing calendar sets out who delivers what and by when – in accounting, but also in purchasing, sales, HR and controlling. It makes dependencies visible and shows where tasks are piling up. It matters that the calendar is not only known within accounting but accepted by everyone involved.
- Record every closing step with an owner and a deadline.
- Build input from other departments firmly into the plan and send reminders in good time.
- Mark the critical path: which steps hold everything else up?
- After each close, briefly discuss what got stuck – and adjust the calendar.
- Plan the calendar for the whole year ahead, including quarter-end and year-end closes.
02Clearing open items as you go
If you only look at open items at month-end, you push work into the tightest phase. Payables, receivables, bank and clearing accounts should be maintained continuously: allocate unclear payments promptly, resolve differences straight away and do not let queries sit. Where legacy items have built up over months, it pays to work through them once in a targeted way rather than explaining them afresh at every close.
03Accruals, reconciliations and intercompany
Keep recurring accruals – for example for outstanding supplier invoices, bonuses or holiday entitlements – in a list showing the basis and the owner. That way, quality does not depend on any one person’s memory.
Document account reconciliations to a single standard: balance, evidence, difference, resolution.
Not every minor detail has to be perfect by the cut-off date. Clear materiality thresholds save time without compromising quality.
Match intra-group balances with the counterparty entities before the close and fix regular reconciliation dates in the calendar. Differences that only surface in group reporting cost time on both sides.
04Standard reports and automation
Automation pays off above all where tasks run the same way every month and involve a lot of manual transfer. Typical starting points:
- Define a fixed set of standard reports for management and the group instead of building them from scratch every month.
- Automate recurring postings and allocations in the ERP.
- Let the system propose bank reconciliation matches and the allocation of incoming payments.
- Digitalise incoming invoices and approvals so that nothing is still in circulation at the cut-off date.
- Identify manual Excel steps and reduce them in a targeted way.
Practical tip
Bring order first, then automate – automating an unclear process does not make it any better.
05Clear responsibilities
A fast close needs one person to steer it: tracking progress, spotting bottlenecks early and setting priorities. Just as important are deputy arrangements, so that the close does not depend on a single person, and documentation that gets new colleagues up to speed quickly. Speed is not an end in itself: a close that is ready early and can be relied on gives management more time for decisions.
06Where to start
You do not have to pull every lever at once. Trying to change everything at the same time overloads a team that still has to run day-to-day business. A step-by-step approach has proved its worth:
- Review the last closeLook back at the last close: where was time lost, and where were people waiting?
- Tackle bottlenecksPick the biggest bottlenecks and tackle them in a targeted way.
- Order before automationBring order first, then automate – automating an unclear process does not make it any better.
- Involve the teamInvolve the team early: the people who do the close every month know best where it trips up.
- Track progressTrack progress over several months rather than taking stock after a single close.
07In practice
For Wabtec Corporation, Loretta Schneiders worked on the monthly close alongside international receivables management in three group companies – Stemmann-Technik, PanTrac and Annax – and embedded process and reporting standards in all three entities. At Live Nation Entertainment, as Interim Team Lead Accounting, she analysed and restructured the processes of a team of 20 people.
Loretta Schneiders
Senior interim finance leadership with an international outlook. Clarity in numbers. Structure in processes. Leadership with impact.