Month-End Takes Too Long
Why the month-end close drags, what to check yourself, and what speeds it up
- 20+ years connecting business systems
- Works with Xero, MYOB and the systems you already use
- Fixed quote after a free chat
Short answer: when month-end takes too long, the accounting is rarely the problem. The time goes on gathering and checking information from other systems: reconciling job, stock or sales figures against Xero or MYOB, retyping data, working out accruals and WIP in spreadsheets, consolidating entities in Excel, and waiting on other departments.
The way to speed up month end is to remove those steps, not to work faster through them. Connect the systems so the information arrives in the accounts on its own, automate the reconciliations and accruals that follow the same rules every month, and build the reports straight from the source so everyone works from one set of numbers.
Why the Month-End Close Drags
Reconciling between systems
Jobs, stock, sales or CRM figures live in one system and the accounts in Xero or MYOB. Before the books can close, someone has to check that the two agree, and chase down every difference.
Data that is retyped or re-imported
Invoices, timesheets or supplier bills typed in again, or exported and imported by hand. Every manual copy is a chance for a mistake that has to be found at month-end.
Manual accruals and WIP
Accruals, prepayments and work in progress worked out in a spreadsheet each month, from information pulled from several places, then journalled into the accounts by hand.
Spreadsheets consolidating entities
Several companies or trusts, each with its own file, combined in Excel. Intercompany balances are matched by eye and eliminations are redone every month.
Waiting on other departments
Finance can’t close until operations confirms jobs are complete, stock is counted or timesheets are in. The close moves at the pace of the slowest hand-off.
Approvals that sit in inboxes
Bills, purchase orders and expense claims waiting for a sign-off. Until they are approved they can’t be entered, so they pile up at the end of the month.
What to Check Yourself
Before changing anything, map what actually happens at month-end. The slow steps usually stand out once they are written down in order.
- List every step of your month-end close, who does it and how long it usually takes
- Mark each step that copies or retypes information already held in another system
- Note where finance is waiting on someone else, and for what
- Count the spreadsheets used along the way, and who maintains each one
- Check which reconciliations find the same kinds of differences every month
- Ask whether the reports at the end are built by hand or run straight from the systems
What Fixes a Slow Month End
Most of the fixes work with the systems you already have. Xero or MYOB keeps the accounts; the work is in what feeds them and what comes out of them.
- Connect the systems that feed the accounts, so invoices, bills and job costs arrive without retyping, and differences are flagged as they happen rather than at month-end. Business process automation
- Automate the reconciliations and accruals that follow the same rules every month, so the team reviews exceptions instead of rebuilding the same spreadsheet.
- Consolidate entities without the spreadsheet, with intercompany transactions matched automatically. Multi-entity and intercompany
- Work from one set of numbers, so sales, operations and finance stop arguing about which report is right. One set of numbers everyone trusts
- Run the month-end reports automatically, straight from Xero or MYOB and your other systems, instead of building them by hand. Xero and MYOB reporting
Wondering what a slow close is really costing you? Read what a slow month-end costs your business, or go back to other signs your systems are costing you time.
Month-End Close FAQs
Why does our month-end close take so long?
Usually because the accounts are the last stop for information that lives in other systems. Jobs, stock, sales and timesheets sit in separate software or spreadsheets, so someone has to pull them together, retype or import them, and then check that everything matches before the books can close. The accounting work itself is rarely the slow part.
How do we speed up month end without hiring more people?
Find the steps that are copying or checking information that already exists somewhere else, and fix those first. Connecting your job, stock or sales system to Xero or MYOB removes retyping. Automating the regular reconciliations and accruals removes rework. Building reports straight from the source data removes the spreadsheet stage at the end.
Will moving from MYOB to Xero (or the other way) speed up month end?
Not on its own. If month-end is slow because information has to be gathered from other systems and spreadsheets, that work follows you to the new accounting system. Fix how the systems connect first. Change accounting systems only if the current one genuinely doesn’t fit.
We have several entities. Does that have to mean a spreadsheet consolidation?
No. Intercompany transactions can be matched automatically, and consolidated reports can be built from each entity’s Xero or MYOB file directly, so nobody copies trial balances into a spreadsheet each month. The eliminations still need to be set up properly, but once they are, the report runs the same way every month.
Where should we start?
Write down every step of your current month-end, who does it and what they wait on. The slow steps usually stand out quickly. If you want help, start with a free initial chat, and if the picture needs mapping properly, the Process & Systems Audit maps your processes and systems for a fixed $5,000.
Month-End Taking Too Long?
Tell us what your month-end looks like and where the time goes. We'll tell you honestly which steps can be removed and where to start.
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