Quicker Monthly Closings: Expense / Dynamic Allocation & Memorized Transactions

Quicker Monthly Closings: Expense / Dynamic Allocation & Memorized Transactions

On how memorized transactions and dynamic allocation can help your business - In general, finance and accounting departments have two primary goals for their month-end close: shorter and faster. You need to investigate every possible angle to consolidate the number of days to close and get your financial information into the hands of your management team. But speed can create errors, especially if you rely on manual transactions. You need speed and accuracy. An integrated software system gives you both.

Get an Easy Button

Think about your current month-end close process. As you move through your checklist, wouldn’t it be great if there was an “easy button” that got you where you need to go in a shorter amount of time and with fewer errors? It’s not an unrealistic concept. An integrated software system offers you:

• Shortened, automated, accurate reconciliation. Let go of Excel or other software programs that require your team to manually input and then reconcile data with a printed bank statement. With an automated system, you can easily import banking files in OFX, QFX or QIF formats, quickly upload a banking file and automate the clearing process so you get to through your reconciliation process in much less time.
• Fully integrated, real-time inventory tracking. Some companies have disparate inventory systems. They record physical inventory in one system and then make journal entries in their financial close system to tie out inventory and cost of goods sold to a general ledger account. Instead, imagine having a fully integrated inventory solution that always maintains the correct inventory and cost of goods sold balances without anyone on your team having to do anything at all. Let that sink in for a minute and then imagine the number of hours they could now devote to critical processes and strategic decision making versus tedious manual entry.

• Integrated accounts receivable and accounts payable. A/R and A/P are other key areas where your finance team may spend an inordinate amount of time trying to manually true up your month end close. Older “systems” require separate batch processes to push the information down to your general ledger package. It makes for a lot of cumbersome steps that you could take off of your to do list with integration. Now, there are no month end journal entries. Everything is always 100% accurate without the need for manual entry and risk of human error. Imagine how your team can allocate their time differently!
• Recurring processes – simplified. It’s a hassle to remember recurring journal entries each month. Putting them on a to do list is great, but what if you forget to actually put these tasks on the to do list? Instead, have the peace of mind knowing that there’s a tool set to memorize your transactions for you. For example, you can create a template for prepaid expenses. Find old journal entries, copy, make changes and resave without having to recreate the wheel each month. Automate a reversal entry with no extra effort. You can even use dynamic expense allocation month after month. The best news is that these aren’t customized features you’ll pay extra for. These out-of-the-box features can be set up and used by any accounting power user.
• Control journal entries. It’s the end of the month. You need to be sure no one posts a vendor bill or creates a customer invoice back to the prior month, but your accounting department needs to ability to make journal entries or adjustments to the prior month. Is this an unworkable situation? Not at all. A robust accounting solution should and can provide you with the ability to prevent end users from transacting in the previous month while allowing your accounting department to forge ahead with necessary memorized transactions.

Your Customized, Integrated Solution

Let an integrated software system take you from a simple system to a sophisticated structure, freeing up your team’s time and saving your company’s money. Contact goVirtualOffice to learn more about how you and your company can benefit from an integrated software system.

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